But it doesnt have to be. With a little knowledge and a watchful eye, you can help guide your buyers to properties that will easily meet the VAs Minimum Property Requirements. Boost your VA appraisal know-how with a review of four big VA appraisal pitfalls to avoid:
Buying a home is an exciting experience However, it can quickly turn stressful if you fail the termite inspection required for a VA loan Termites and other wood-destroying pests can cause extensive damage, so the VA has strict standards regarding termite infestations. Failing the inspection could put your VA loan approval at risk.
Don’t panic if you fail the termite inspection on a home you want to buy. There are steps you can take to resolve the issues and get your VA loan back on track Here is what you need to know about failed termite inspections and how to handle them during the VA loan process
Why The VA Requires Termite Inspections
The VA has established Minimum Property Requirements (MPR) that properties must meet to qualify for a VA-backed loan. These requirements ensure the home is structurally sound and won’t pose safety hazards to veteran homeowners.
Termite inspections are a key part of the MPRs. Termites can severely compromise the integrity of a home’s structure, foundation, and framing if left untreated. The termite inspection ensures the property is free of infestations that could make the home unstable or unsafe in the future.
The termite inspection requirement protects homebuyers from unknowingly purchasing a property with hidden termite damage. It also reduces risks for the VA and lenders financing the purchase.
When A Termite Inspection Is Required
Whether a termite inspection is required for your VA loan depends on your property’s location. The VA mandates termite inspections in areas with a high probability of infestation. This includes states like Florida Texas, South Carolina and others known for termites.
Your lender will let you know if the property requires a termite inspection. Even if the VA doesn’t require it, the lender can mandate an inspection to protect their investment.
How To Handle A Failed VA Termite Inspection
Initially, a failed termite inspection seems like bad news for financing a home purchase. However, there are solutions for resolving a failed termite inspection report and continuing with your VA loan:
Get Treatment and Make Repairs
The first step is to get a professional termite treatment and make any necessary repairs. Work with a reputable pest control company to eradicate the termites and prevent future infestations. Additionally, repair any damage caused by the termites. This may involve replacing structural wood, framing, drywall, etc.
The extent of repairs depends on the severity of the damage. Try to negotiate with the seller on covering repair costs. Make sure all repairs are complete before moving forward with the purchase.
Request a Re-Inspection
After treatment and repairs, the property must be re-inspected. This verifies the termites are eliminated and damage has been properly repaired. Schedule a re-inspection with the same company or inspector.
Provide the re-inspection report to your lender. It should show no signs of active infestations or unresolved damage issues. If it passes, you can proceed with the loan process.
Provide Documentation
Compile documentation of the failed inspection report, treatment records, repair invoices, warranties and the final passed re-inspection report. Submit these to your lender and appraiser as evidence the termite problems are resolved.
Thorough documentation prevents delays in getting your VA loan approved after initially failing inspection.
Act Quickly
Try to act quickly in addressing failed termite inspection issues. VA termite inspection reports are valid for 90 days. Completing treatments, repairs and re-inspection within this timeline prevents the need for another inspection.
If possible, ask for rush service on treatments and repairs. The sooner problems get fixed, the faster you can proceed with your home purchase.
Negotiate Closing Costs
Closing costs may need to be negotiated if repairs are extensive. As a buyer, you don’t want to get stuck covering high repair bills caused by the seller’s termite problem. Try to negotiate closing credits to offset costs.
Walk Away If Problems Are Severe
In rare cases, the property may have extreme termite damage impacting the overall structural integrity. If repairs will be extraordinarily expensive, it may be best to walk away from the purchase, even if you’ll lose your earnest money. Your real estate agent can help assess if this is the right option.
Tips For Passing A VA Termite Inspection
Follow these tips to avoid failing a VA termite inspection from the start:
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Hire a reputable inspector – Ensure the inspection company has extensive experience with VA loan requirements. Ask for certifications and inspectors with VA experience.
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Inspect other structures – Check garages, sheds, decks and other structures in addition to the main house. Termites can easily spread to secondary buildings.
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Look for signs yourself – Check for hollow sounding wood, mud tubes on foundations and swarms around windows. Notify your inspector of anything concerning.
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Review seller disclosures – Review the seller’s property disclosure for previous termite issues or treatments. Ask your real estate agent for details on the home’s history.
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Act during termite season – In warmer climates, schedule the inspection during spring or summer when termites are most active. This increases chances of detection.
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Research the property – Research the home’s age, construction materials, Foundation type and other details that may increase termite risks. Share findings with your inspector.
Partner With An Experienced Lender
A failed termite inspection doesn’t have to derail your VA loan. An experienced lender understands the process of addressing inspection issues to get your loan back on track. At [company name], our VA specialists will help you resolve any termite-related challenges that pop up during the inspection process.
We know how to work with sellers, pest control professionals, contractors and the VA to provide clear guidance and get your purchase completed quickly. Our team is committed to helping you buy your dream home, even if minor hiccups like a failed termite inspection occur along the way.
To learn more about our VA loan program and get expert assistance for your home purchase, contact [company name] today!
The leaky basement
Water can cause an unbelievable amount of damage to a home. Water leads wood to rot, mold to grow and drywall to decay.
That’s why basements and crawl spaces must be dry to garner VA approval. The VA states that any excessive dampness or ponding of water in a home’s crawl space must be corrected, and most appraisers extend that rule to basements, as well.
The bad roof
In the VA’s own words, “the roof covering must
- prevent entrance of moisture, and
- provide reasonable future utility, durability, and economy of maintenance.”
Appraisers have some flexibility in assessing the “reasonable future utility” of a roof. Roofs that are 20 years old won’t automatically lead an appraiser to recommend replacement. Borderline roofs will usually lead an appraiser to call for a professional roof inspection. Gaping holes or missing shingles, however, will probably necessitate repair.
Some homeowners are willing to overlook the health risks posed by lead-based paint. The VA is not so brazen.
Lead-based paint “constitutes an immediate hazard that must be corrected.” VA appraisers are ordered to assume that defective paint conditions such as cracking or chipping on pre-1978 surfaces involves lead-based paint. If lead-based paint is noted, sellers must take action for a successful sale.
The VA requires that surfaces with loose lead-based paint either be removed or thoroughly scraped and covered with two coats of paint.
Termite-ridden homes must be treated and re-evaluated for VA loan approval. Termites are pesky little critters that can eat the heart right out of a good deal.
Termite inspections are required in certain areas of the country. And even if a pest inspection isnt required in your state youll still have to have an inspection completed if the appraiser finds evidence of termites on the property.
If termites are discovered, the property has to be treated and re-evaluated. The cost of repairs can be covered by either the buyer or seller and is often a point of discussion in negotiations.
Real Estate: Who Pays The Termite Inspection VA Loan
FAQ
Will the VA approve a loan with termite damage?
What would stop a VA loan from being approved?
What happens if a house doesn’t pass VA inspection?
What are red flags for VA loans?
Can a VA loan be denied if a termite inspection fails?
While the VA and lender can deny your loan if the home fails inspection, there are steps you can take to secure your investment, such as: Treatment and repairs: The most immediate step after a failed termite inspection is for the seller to address the infestation by contacting a professional exterminator and treating the property.
Do Veterans need to pay for a VA termite inspection?
However, it’s essential to note that veterans aren’t **required** to pay for the inspection; they are **allowed** to pay if necessary . In summary, VA loans provide veterans with favorable terms, including
Does a termite infestation affect VA loan eligibility?
The discovery of a termite infestation on a property can significantly affect VA loan eligibility. Specific requirements for VA loans related to wood-destroying pests like termites must be met. During the VA home inspection, the inspector assesses the property for signs of termite activity and damage.
Do you need a pest inspection for a VA home loan?
Scheduling a pest inspection is crucial to meeting VA loan requirements. When applying for a VA home loan, the property must meet the minimum property requirements set by the VA to ensure safety and structural soundness. A vital aspect of the VA appraisal process is the inspection of pests, including termite infestations.