Septic tanks are a necessity if your home isn’t connected to the local sewer system. But the costs of buying, installing or repairing one can easily set you back thousands of dollars. Luckily, there are many financing options for keeping this essential piece of equipment in top shape.
The average cost to install a new septic system ranges between around $3,000 to $12,000, according to statistics compiled by Angi, a home improvement network. However, the actual cost depends on the size of the tank needed, materials used, labor costs, drain-field conditions and other factors.
Replacing an existing septic tank or repairing the tank or system should cost significantly less, but it also depends on the specific problem. For example, if you only need to replace certain parts of your septic tank, you might only pay a few hundred dollars. On the other hand, if you need a new septic tank installation or there’s a problem with your drain field, you could be looking at thousands of dollars in repairs.
No matter the problem, get multiple quotes and ask for detailed estimates. That way, you can compare the costs of materials, labor and other expenses to find the best deal.
Another septic tank cost consideration — if you’re replacing an old septic system or your home is a new build — is whether to install an aerobic versus anaerobic septic system.
Anaerobic systems are by far the most common and least expensive option, but they’re not always the most efficient. You may need to install an aerobic system depending on your land and soil conditions.
A licensed professional can assess your property and see what makes the most sense for your home.
There are multiple options to fund repairs, replacement or installation of septic tank systems. First, let’s look at federal and locally funded options to see if you’re eligible.
Several federal departments offer grants and loan-assistance programs to help fund your septic system needs.
| Department | Program | Description |
|---|---|---|
| Environmental Protection Agency (EPA) | Clean Water State Revolving Fund (CWSRF) | Provides grants to state governments to be used for low-interest loans to help install, upgrade or maintain septic systems. |
| US Department of Agriculture (USDA) | Rural Home Loans Program | Low-income homeowners can get loan assistance for home repairs and renovations, including septic system needs. |
| Single Family Housing Repair Loans and Grants Program | Offers general-use home repair loans to low-income homeowners and grants to those over age 62. Loans are capped at $40,000 with interest rates fixed at 1%. Grants can reach as high as $10,000, and loans and grants can be combined. | |
| Rural Decentralized Water Systems Grant Program | Works with nonprofits that provide revolving 20-year loans with 1% interest rates designed to work on water and septic systems. Loans max out at $15,000 per household. | |
| US Department of Housing and Urban Development (HUD) | Community development block grants | Homeowners can apply for a HUD block grant through their state to repair, install or improve their residential septic system. |
All 50 states and Puerto Rico have programs through state agencies that offer low-income residents affordable loans or grants to install, replace or repair a septic tank. Typically, these are funded by federal programs, but some local programs exist.
If you live in a rural area in particular, consider contacting your local government first to find out what options are available.
You can find a list of state-specific funding programs on the EPA website or contact your state’s community assistance or water resources offices.
Some states offer tax credits or deductions for repairing or replacing a septic system. For example, Massachusetts allows its residents to get a tax refund for up to 60% of the project’s cost. But you might want to consult a tax expert to make certain you are eligible for the credit. You also need to pay for it up front, which isn’t helpful if you don’t have that kind of cash on hand. Talk to a tax professional in your area to see if your state has any tax credits or deductions for septic systems.
If you’re not eligible for government-funded loans or grants, you still have plenty of home improvement loan options to fund your septic system.
Some nonprofit lenders offer low-interest loans for replacing or repairing a septic tank. For example, Craft3 in the Pacific Northwest offers APRs close to 2.5%, depending on how much you earn, how much you need to borrow and your location. Plus, its loans come with flexible repayment terms. Your home and septic tank might need to meet certain requirements to qualify.
To find a non-profit lender in your community, contact your local housing department, USDA office or Department of Environmental Conservation.
A problem with a septic system could be construed as an emergency in some cases. So, if you need fast cash to fix the issue, a personal loan could be a good option. These days, lenders can usually fund personal loans quickly — sometimes as soon as the same day you apply.
Personal loans also offer payment terms of two to seven years, so you’ll have some flexibility to decide how long you’ll need to repay the loan. But interest rates usually range between 6% to 36%, and qualifying for the best rates typically requires a credit score of 720 or higher. If you have poor credit, qualifying for a personal loan at a decent rate can be difficult.
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Using your home’s equity is another way to finance your septic system project, although you may need at least 20% equity in your home to qualify. A home equity loan provides a lump sum at a fixed interest rate, which you pay off in equal monthly installments. This type of funding might be a good option if you know exactly how much you need and want a predictable monthly payment.
Or, you could get a HELOC instead, a revolving line of credit that typically comes with a variable rate. A line of credit might make more sense if you’re going for a DIY septic system or want to plan ahead but aren’t sure how much it’ll cost. Keep in mind that equity financing uses your house as collateral, so you’ll put your home at risk if you can’t repay the loan.
Depending on your situation — and how fast you need to get your septic tank fixed — you could put it on a credit card. Despite high credit card rates, this might not be a bad idea if the repairs will only cost a few hundred dollars and you can pay it off quickly.
Or, you could apply for a credit card with a 0% introductory rate and land an interest-free loan for 12 months or more. This could be a good option if the cost of septic tank replacement or repairs are more expensive and you think you can pay it off before the regular rate kicks in.
Some septic companies offer financing plans for their services, so you don’t have to pay it off all at once — many through third-party lenders like GreenSky. Others offer a combination of loans and same-as-cash financing.
Same-as-cash financing often gives you three to six months to pay your bill without paying interest. If you can’t pay it off during that time, you might have to pay higher interest than the rates you’d get with a loan — possibly similar to a credit card rate.
In addition, some septic companies have coupons available that offer service discounts. You can typically use these in addition to financing to lower your cost even more.
If you aren’t eligible for a government loan or grant, consider these steps when applying for other septic tank financing.
Estimate your home’s equity. You’ll need to know how much equity you’ve built up to see if you can qualify for home equity financing.
How much you’ll pay for your loan depends on the lender, the type of loan, your interest rate and loan terms. This varies depending on your eligibility. You can play around with how much you may pay by using our septic tank financing calculator:
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The better you care for your septic tank, the less often you’ll need to repair or replace it. Here are seven ways to keep it in top shape:
Government-funded loans and grants are generally the least expensive way to pay for a septic tank, but they aren’t available to everyone and can take some time to process. If you’re in a pinch, a personal loan could be a fast solution, or you may want to leverage your home’s equity for septic financing.
A septic tank can last 20 to 40 years or even longer. The materials used, the ground it’s in and how well it’s maintained all impact its lifespan.
Unfortunately, it may be abundantly obvious when you need a new septic tank! Some common symptoms of a bad tank or system include bad smells, persistent clogs, gurgling pipes or soggy ground in your drain field.
The best thing you can do for your drain field is leave it alone. You shouldn’t drive on it, pave over it or build anything on top of it. You don’t even want to plant trees too close to it for fear of root systems interfering with the pipes.
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