A guide to VA loan termite inspections

They're tiny, they’re mighty, and they can cost a small fortune (not to mention a hassle) to zap. When it comes to termites, a handful of mortgage lenders, like the Department of Veterans Affairs (VA), might make a termite inspection necessary before you can get approved for a loan and are handed the keys to your home.

If you're getting a VA home loan, it’s a good idea to get familiar with the ins and outs of the requirements of a VA loan termite inspection. It can put you at ease and help you feel more confident during the home buying process. By knowing what to expect, you can concentrate on what you can do for smooth sailing.

When is a VA termite inspection required for a VA loan?

Whether a VA mortgage termite inspection is mandatory depends on the location – and this varies per state. The rules also depend on the state level. For example, in Alaska, information on wood-destroying insects isn't required. On the other hand, it is necessary for properties in Southern states like Arkansas, Louisiana, Oklahoma, and Texas. In some cases, only certain counties within that state require a termite inspection.

Some parts of the country have a greater chance of a termite infestation. In turn, you're more likely on the hook to get your potential home inspected for termites.

And no matter where you plan to buy a house in the U.S., a proper inspection is always required if there are signs of wood-destroying insect damage – or an active insect infestation – during the appraisal part of the home buying process.

VA loan termite inspection requirements by state

You'll want to look at what the state requires for a VA loan termite inspection. That way, you'll avoid getting blindsided and be more prepared when you buy a home:

The Termite Infestation Probability Map is your friend – and comes in handy. It shows parts of the country with moderate and heavy termite inspections and where it's likely you'll need to get one. 

If you live in one of these states, you must get a termite inspection. An exception is if you're looking into a VA streamline refinance. Otherwise, the rules apply:

• Alabama
• Arkansas
• Arizona
• California
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Iowa
• Illinois
• Indiana
• Kansas
• Kentucky
• Louisiana
• Massachusetts
• Maryland
• Mississippi
• Missouri
• North Carolina
• Nebraska
• New Jersey
• New Mexico
• Nevada
• Ohio
• Oklahoma
• Pennsylvania
• Rhode Island
• South Carolina
• Tennessee
• Texas
• Utah
• Virginia
• West Virginia
• Washington, D.C.

While some states require a pest inspection no matter what, you only need to get one in other areas if an issue pops up during the appraisal. If that's the case, expect to need to go through an inspection possibly:

• Alaska
• Colorado
• Idaho
• Maine
• Michigan*
• Minnesota
• Montana
• New Hampshire*
• New York*
• North Dakota
• Vermont*
• Washington
• Wisconsin*
• Wyoming

* These states may require you to have a pest inspection, depending on the county.

When are termite inspections not required for a VA loan?

When you're in the process of getting approved for a VA loan, termite inspections usually aren't required in parts of the country in low-risk areas. If the property you have your eye on is located in the part of the U.S. that falls under the "none to slight" or "slight to moderate" risk areas, an inspection generally isn't needed.

Should you get a termite inspection if it's not required?

Even if it's not mandatory, inspecting the house for wood-destroying insects could be a good idea.

While it's an added step, spotting any issues early can save you headaches, time, and money in the long run. Ultimately, it helps ensure the property's structural integrity and that your home is in tip-top shape. That can afford you peace of mind, a home you can enjoy living in, and money spared from costly repairs.

How do termite inspections for VA loans work?

A termite inspection usually happens at the same time as your home inspection, which includes a visual, surface-level examination of a property's systems and physical structure. This may include the property's attics, basements, and crawl spaces.

While they tend to get mixed up, a home inspection and an appraisal are different. An inspection looks just at the physical structure and systems. The goal of this is to figure out whether any repairs are necessary.

On the other hand, an appraisal is an independent professional's estimate of a home's fair market value. It is determined after assessing the property's physical structure and systems.

Now, let's get into the nitty-gritty of how VA loans work when it comes to termite inspections:

Schedule an in-depth inspection

As mentioned, a termite inspection to secure a VA loan requires carefully examining the home's exterior and interior areas. These are areas that check off two things: they're visible and accessible.

These parts of the property need to be checked for wood-destroying pests — think termites, carpenter ants, carpenter bees, and old-house borers. As mentioned, this might only be required if the professional VA appraiser spots a potential issue during the home appraisal process.

The termite inspection must be completed within a certain time frame, which usually hovers around the closing date.

The appraiser reviews the inspection report

Once the termite inspection is completed, the report is passed to the appraiser. The report's details will include the inspector's discoveries that have to do with signs there are wood-destroying insects, such as termites.

Commonly referred to as a WDO or WDI inspection, the report is usually valid for 90 days. The report includes detailed findings as well as recommendations on the next steps. However, by any means, it doesn't provide a guarantee against future infestations and damage to the property.

Provide detailed remedies for damage and pests found

If there is evidence of wood-destroying pests and damage to the home, you'll need to deal with the treatment and necessary repairs to address the issue.

This might include replacing the home's structural elements, such as columns and beams. It might also entail replacing or repairing baseboards and trim. The end goal? To restore the home to its original state.

Once the proper repairs have been completed, the home must be re-inspected to ensure that the damage has been tended to and the infestation has been wiped out.

Who pays for the VA home loan termite inspection?

Technically, as of June 2022, the VA made some changes when it comes to pest inspection fees and costs. You, the buyer, may pay for expenses and necessary repairs related to wood-destroying pests. The key word is "may."

While this sounds like a negative, this policy change can actually benefit you, the home buyer seeking a VA loan.

Why's that? Well, if you have the funds in hand and can afford to do so, you'll be in the driver's seat and handle costs related to termite inspections and repairs directly. This can make for smoother real estate transactions – with less waiting for the seller to take action, not to mention less hassle and headache.

That said, the VA also encourages home buyers to try negotiating so that the seller takes on some of the costs of the inspection and repairs.

So, the party responsible for footing the termite inspection costs might feel like the check at a restaurant being pushed back and forth between two hesitant payers. The truth isn't far from that. It can often involve a bit of negotiation between the buyer and seller.

How much does a VA termite inspection cost?

The cost of a home termite inspection varies and can be anywhere from $100 – $400. This depends on several factors, such as the area, size of the home, and the pest control company.

It is an extra cost and step in the home buying process. But then again, according to the National Pest Management Association (NPMA), termites cause $5 billion annually in structural damage. Getting a proper, thorough inspection and checking for wood-destroying pests can ultimately put money back into your pocket.

How long is a termite inspection good for a VA loan?

As mentioned, a VA termite inspection is usually valid for 90 days. However, this depends on the policies of that particular lender.

Should termite damage – and signs of wood-decimating pests – be found during the inspection, the home needs to check off the criteria for the VA Minimum Property Requirements (MPRs). To accomplish this, the damage must be tended to and repaired before you can close on your loan.

What are my options if the termite inspection fails?

Let's say the VA termite inspection doesn't pass. If so, the seller must tend to the infestation and repair any related damages. When these items are completed, the loan is eligible to be approved.

If repairs related to wood-destroying insects are needed to meet the VA MPRs, a few things need to happen:

Repairs are completed. This needs to happen before the VA loan gets the green light.

Remember: the costs of repairing termite-related damage don't always fall onto the shoulders of the seller.

While the buyer may pay for those costs, the seller normally foots the bill. However, it's not a given — there might be some back-and-forth negotiation.

For one, the VA won't sign off on the loan unless the property meets its MPRs. Another reason? You, the buyer, cannot move forward with the loan until the home is up to standard.

However, VA loan lenders won't let buyers include the costs of the repairs in the loan. As a buyer, it might be hard to pay for the repairs unless you have the money. And if you did, it would cut into the down payment, closing costs, and other expenses associated with buying a house.

After the property has undergone treatment and repairs, reinspection is necessary to ensure that termites and other wood-destroying insects have gone and that the damage has been repaired.

You'll need to get a termite inspection form (NPMA-33). This ensures that the property is indeed termite-free and that it has undergone the proper inspection to show that it meets VA requirements.

A failed inspection and repairs might delay the home closing. As you can see, it's important that repairs are completed so that the VA and lender can approve the loan.

The bottom line: Termite inspections with VA loans vary from state to state

Depending on where you live, a termite inspection for a VA mortgage might be required. In any case, if there are telltale signs of wood-destroying pests or damage to the home due to termites, you'll need to inspect before getting a VA loan.

There's a lot to love about VA loans: no required down payment, fewer closing costs, and competitive terms and rates. However, lenders who offer VA loans usually like to see a 620 minimum credit score and a debt-to-income (DTI) ratio that caps at 41%.

A VA loan can make your dreams of buying a home within reach. You can learn more about VA loans from Rocket Mortgage®.