If you are buying or selling a home in Corrales, water is more than a utility. It is a key part of how lenders decide if your loan can close on time. Corrales properties often rely on private wells and may include ditch irrigation, so lenders ask for proof that the water is safe, sufficient, and legally available. In this guide, you will learn what loan programs typically require, how water rights factor into a sale, and the checklist that keeps your deal on track. Let’s dive in.
How water works in Corrales
Private wells and local setup
Corrales does not operate a municipal water system. Most homes use private domestic wells, and some areas also have limited sewer service. The Village recommends confirming well permits, well logs, and setbacks, and consulting the State Engineer on rights or drilling questions. You can review the Village overview of wells and ditches in the area on the local water page for Corrales: Water in Corrales.
Acequias and irrigation access
Many Corrales properties irrigate through community ditches known as acequias. Acequias are recognized political subdivisions in New Mexico with their own rules for distribution, maintenance, and member duties. If your property has ditch access, you will want to confirm the acequia association, membership status, and any related obligations. Learn more about acequia governance and member roles from the New Mexico Office of the State Engineer’s acequia resources.
Why lenders care about water
Lenders need confidence that your home has:
- A potable water supply that passes lab testing.
- Adequate and reliable flow for daily living.
- A clear legal right to use the source.
- Proper agreements if the well is shared or off-site.
In Corrales, that means your loan file often includes water quality reports, a well yield or pump test, and documents that prove ownership or access. For shared systems, lenders usually require a recorded maintenance and access agreement. Appraisers also report on the water source and whether it meets community standards. See how appraisers and lenders document site utilities in the Fannie Mae Selling Guide.
What lenders commonly require
Water quality testing
Most lenders require independent lab testing for private wells. Common analytes include total coliform (including E. coli), nitrate, and lead. New Mexico public health resources note that mortgage lenders often ask for these tests for loan approval. See recommended well-testing resources for homeowners through NM Tracking.
Timeframes matter. VA guidance often requires tests to be no older than about 90 days at closing, and USDA programs commonly use a window of about 120 days. Always confirm your lender’s specific rules. You can review a summary of VA loan water test requirements and USDA well water testing expectations.
Adequate yield and pump tests
If there are questions about supply or if the well is shared, lenders often ask for a yield or pump test. Typical lender practices, including FHA-related guidance, cite minimum sustained flows in the ballpark of 3 to 5 gallons per minute over a set period. Specifics vary by program and property. A useful summary of common FHA-related practices is here: FHA guidelines for properties with wells.
Shared or off-site wells
If the property uses a shared or off-site well, lenders typically require a recorded maintenance and access agreement, controls for each dwelling, and proof the system can supply continuous service. Many programs also limit the number of homes served without additional review. See shared well considerations in the Fannie Mae Selling Guide.
Appraisal and underwriting
Appraisers report whether a home uses public or private water and whether the supply meets community standards. Underwriters rely on the appraisal plus your tests and recorded agreements to clear water-related conditions. If documentation is missing or a test fails, your lender may require remediation or updated reports before approving the loan. See appraisal site-utility reporting in the Fannie Mae Selling Guide.
Irrigation rights and your loan
Irrigation water rights in New Mexico are generally appurtenant to the land, which means they usually pass with the property unless they were previously severed. Non-irrigation rights may not transfer automatically unless specifically conveyed. You can read a plain-language overview of appurtenancy and non-use risks through the Acequia de la Puebla governance summary.
When ownership changes, the New Mexico Office of the State Engineer requires a change-of-ownership filing, supported by the recorded instrument that conveys the water right. Missing filings can delay closings and cause title headaches later. For a practical explanation of conveyance documentation and OSE filings, see Modrall’s overview of water-right transfers.
Title insurance in New Mexico commonly excludes water-right coverage. Many historic rights were not fully recorded, so verifying water-right title often requires separate due diligence beyond the standard title policy. A helpful summary of typical exclusions and due diligence steps is available here: Lorman resource on NM water-rights transfers.
Buyer and seller checklist in Corrales
Gather documents early
- Well permit and well log (driller’s report). Confirm the permit number and owner name. Review local guidance on wells from the Village’s Water in Corrales page.
- Deed and title report. Look for references to appurtenant water rights, and ask the title officer to search for any separate water-right conveyances. Note typical title policy exclusions for water rights in New Mexico as outlined by Lorman’s due diligence summary.
- OSE water-right files and any acequia records. If irrigation is present, confirm the acequia name, membership, and dues status. See acequia roles and processes in the OSE’s acequia resources.
Order tests and inspections
- Water quality test by an approved lab. At minimum, plan on total coliform, nitrate, and lead. Review local health resources via NM Tracking.
- Well yield or pump test if supply is uncertain, the well is shared, or an appraiser flags concerns. Many lenders look for a sustained 3 to 5 gpm, depending on program and property, as summarized in FHA-related guidance.
- Setback checks between the well and septic system as part of your due diligence. Village and county rules can apply. See local context on Water in Corrales.
Record agreements and file changes
- For shared or off-site wells, prepare and record a maintenance and access agreement that meets lender standards. See shared-well documentation in the Fannie Mae Selling Guide.
- If irrigation rights transfer, make sure the recorded deed conveys the rights and submit the change-of-ownership form to the State Engineer with the recorded instrument. Learn the filing basics in Modrall’s overview.
Budget and timing
- Buyers typically order and pay for lab tests and well inspections, though this can be negotiated. Tests and scheduling can take days to a few weeks. VA often requires results within about 90 days of closing, and USDA often within about 120 days. See the VA test window summary and USDA testing guidance.
Common snags and how to avoid them
- Unclear water-right history. Because title insurance often excludes water rights, unresolved chains of title can stall a sale. Use recorded deeds and OSE records, and consult resources like Lorman’s due diligence summary.
- Missing shared-well agreement. Lenders rarely accept informal arrangements. Ensure a recorded maintenance and access agreement that meets program requirements per the Fannie Mae Selling Guide.
- Failed water tests or weak yield. Be prepared to address treatment, repairs, storage, or additional testing if needed. Coordinate timelines so updated reports still meet each program’s test-validity window.
- Dormant irrigation rights. Long periods of non-use can create risk for irrigation rights. Learn the basics of appurtenancy and usage obligations in the Acequia de la Puebla governance overview.
Timeline tips for a smooth closing
- Confirm your loan program early and ask your lender for exact water-test requirements and who must collect samples.
- Schedule lab sampling 3 to 6 weeks before closing so results are fresh within VA or USDA validity windows.
- If you have a shared or off-site well, draft and circulate the agreement for signatures during inspection periods so it can be recorded before underwriting review.
- Build a buffer for any re-tests or well work so appraisal and underwriting can clear conditions without extending closing.
Final thoughts
In Corrales, water rights and wells are part of the value and the financing. With the right documents, timely tests, and clear agreements, you can keep your loan on track and protect your long-term use of the property. If you want a local, hands-on guide through each step, reach out to Maggie Chavez to get started.
FAQs
What makes Corrales water different from other areas?
- Corrales does not have a municipal water system. Most homes use private wells, and many parcels have acequia irrigation access. See the Village’s overview: Water in Corrales.
What water tests do lenders usually require for private wells?
- Most lenders ask for a lab test of total coliform (including E. coli), nitrate, and lead. Review homeowner testing resources through NM Tracking.
How do shared wells affect mortgage approval in Corrales?
- Lenders typically require a recorded maintenance and access agreement, controls for each dwelling, limits on homes served, and proof of adequate supply. See details in the Fannie Mae Selling Guide.
Do irrigation water rights transfer with the land in New Mexico?
- Irrigation rights are generally appurtenant to the land and usually pass with it unless they were severed. Confirm conveyance language and required filings; see the Acequia de la Puebla governance overview.
Who pays for well and water tests during a Corrales sale?
- Buyers typically order and pay for tests and inspections, though this can be negotiated in the contract. Plan for lab turnaround and lender validity windows.
How recent must well water tests be for VA or USDA loans?
- VA tests are often required to be within about 90 days of closing, and USDA tests are commonly within about 120 days. Check your lender’s exact timelines using these summaries: VA test requirements and USDA well testing.
