For every VA home loan, the Department of Veterans Affairs (VA) requires an appraisal as part of the loan process. However, a termite inspection is also needed if an appraiser finds evidence of termites or if local regulations require one. You can find all the information about termite inspections for VA home loans below.
Termite Inspections For VA Home Loans
Before you have a termite inspection for a VA home loan, here are some things you need to know.
What Happens During a Termite Inspection?
During a termite inspection, a pest control pro looks for evidence of termites and other wood-destroying insects as well as any obvious damage to the property.
An experienced termite control technician completely inspects the house from top to bottom to detect a potential termite infestation and identify other wood-destroying insects, some of which can look like termites. This inspection also ensures the house’s safety and prevents costly repairs later.
Why Are Termite Inspections Required?
In the United States, termites inflict billions of dollars’ worth of damage annually, including structural damage that jeopardizes a home’s safety. In some circumstances, a termite inspection is required for a VA home loan in order to protect the borrower and the lender from financial risks associated with termite-related problems.
An inspection is required if any of the following conditions are met:
- State or local regulations mandate an inspection
- Termites are common in the area
- Your lender requests one
- Appraiser finds evidence of an active termite infestation
VA Appraisal Requirements For Termites
The VA has detailed guidelines for properties financed through its home loan program. Before a property qualifies for a VA loan, it must go through an appraisal to ensure it meets the VA’s minimum property requirements (MPRs). This ensures the buyer purchases a safe, clean, and structurally sound home.
It is important to know that an inspection and an appraisal are different. A VA loan appraisal is an assessment done by a licensed appraiser to establish a fair market value, considering factors like location, size, condition, and comparable sales in the area. A VA-approved appraiser will also evaluate the home to ensure it meets the MPRs.
Before purchasing a home, the VA also recommends getting a standard home inspection, which is different from a termite inspection, to identify any other issues. (An appraiser notes only obvious issues.) A standard home inspection will thoroughly review the structure for hidden damage, unseen pests, and other potential problems.
VA Loan Termite Requirements By State
Termite inspections are required for homebuyers in certain states where wood-destroying insects are common or if the appraiser notices evidence of a current infestation. County-specific requirements also apply in certain areas.
These states DO NOT require a termite inspection unless requested:
- Alaska
- Colorado
- Idaho
- Maine
- Minnesota
- Montana
- North Dakota
- Oregon
- South Dakota
- Wyoming
- Washington
States that require termite inspection in SOME COUNTIES:
- Michigan
- New Hampshire
- New York
- Vermont
- Wisconsin
In every county in the rest of the United States, VA home loans require a termite inspection due to local regulations.
Form NPMA-33
Form NPMA-33, commonly referred to as a termite letter or WDI inspection report, is a standardized form used to report the findings of a termite inspection for mortgages like VA loans. The NPMA-33 form provides information about the presence or absence of termites, as well as any visible damage they may have caused.
VA Termite Inspection For New Construction
The risk of termites and other wood-destroying insects is not limited to older homes. Termites can infest new ones as well. They can be attracted to mulch, specific types of soil, or other environmental factors that draw them to the site. It won’t take long for them to find their way into a new home.
VA loans require additional paperwork for newly constructed homes. You’ll need a subterranean termite builder’s guarantee (Form NPMA-99-A) or a subterranean termite service record (Form NPMA-99-B) detailing the steps taken by the builder to prevent termite infestations.
The VA defines new construction as a property that fits into one of the following categories:
- Proposed construction refers to a property where construction has yet to begin or permanent material like cement has yet to be placed.
- Under construction describes the time frame from the start of permanent material placement to completion. Properties that are under construction do not have a Certificate of Occupancy (CO) yet.
- New properties have been completed within a year of receiving their Certificate of Occupancy (CO) or equivalent document. To be deemed new construction, it must not have been occupied at any point.
Cost of VA Termite Inspection
The cost of a termite inspection can be influenced by the home’s location and the mortgage type. On average, termite inspections range in price from $65 to $265. In some cases, termite control companies will apply the inspection fee towards treatment costs.
In the past, VA loan applicants were not allowed to pay for termite inspections. Instead, the responsibility was placed on either the seller or the lender. As a result, some sellers had a negative view of VA loans. The VA updated its guidelines in June 2022, allowing homebuyers to cover the cost of termite inspections and repairs.
Signs of Termites
A new home is a huge investment. When searching for your next piece of real estate, take the time to check for pests. Early detection may save you time, money, and your dream home.
Watch out for these signs of termites in your home:
- Discarded wings near windows or doors
- Mud tubes or tunnels on exterior walls
- Sagging or buckling floors
- Small holes in wood, windowsills, or baseboards
- Hollow-sounding or damaged wood
- Clicking or banging sounds coming from walls
- Tight-fitting doors or hard-to-open windows
- Termite droppings (frass), which look like piles of dirt or sawdust
- Termite swarmers (winged termites) that are seen moving around
FAQ: VA Loan Termite Inspections
Is a Termite Inspection Required For a VA Loan?
A termite inspection is needed for a VA loan if the home is located in an area where termites are common or if signs of damage or infestation are found. Termite inspection requirements vary by state, but their main purpose is to identify any termite-related issues and determine the necessary treatments and repairs before finalizing the loan.
How Long is a Termite Inspection Good For?
Termite inspections are valid for 90 days. However, if any issues arise or the loan process extends beyond the initial 90-day period, the lender may request a more recent inspection. It’s best to consult with your lender or mortgage advisor to confirm your loan schedule.
What Happens to a VA Loan if Termites Are Found?
If the termite inspection finds damage or active termites, the problem must be addressed before the sale can continue. The inspection report notes visible evidence of insects, visible damage, and recommendations for treatment. The VA suggests that buyers negotiate repair costs with sellers.
When to Call a Pro
If you suspect or discover any signs of termite infestation on your property, it is recommended that you call a professional for termite treatment and repairs. Local termite inspection companies will have the expertise and knowledge to eliminate termites and prevent further damage to your home effectively.
Main Image Credit:
Background: Vasyl Dolmatov / Canva Pro / License
Termite Inspection: SLRadcliffe / Canva Pro / License
VA Loan written on wood: designer491 / Canva Pro / License
7 comments
Comments are closed.