If you’re an eligible veteran or servicemember considering a VA home loan, you may have heard talk of a termite inspection requirement. But why might the Department of Veterans Affairs (VA) require a termite inspection and how does the process work? Whether you’re buying or selling a home, here’s what you need to know about termite inspections for VA loans.
If you’re a veteran or active military looking to buy a home using a VA loan, you may be wondering about the termite inspection requirement. Termites can cause serious structural damage if left unchecked, so the Department of Veterans Affairs requires termite inspections in certain areas prone to infestations
I’ll walk you through what a termite inspection for a VA loans entails, why it’s required, who pays for it, and more. By the end, you’ll understand the VA termite inspection process inside and out
What Is A Termite Inspection For A VA Loan?
A termite inspection for a VA loan involves having a professional home inspector check the property for signs of termites or other wood-destroying organisms. The inspector examines both the interior and exterior of the home, looking for
- Visible termites or other pests
- Damage to wood structures, siding, framing, etc.
- Droppings or dirt tunnels left by termites
The termite inspection results are summarized in a report detailing any evidence of infestation, the location and extent of any damage, and recommended treatments.
VA loans require termite inspections to ensure the structural integrity and safety of the home, protecting both the veteran buyer and the lender issuing the loan.
Why Are Termite Inspections Required For VA Loans?
Termites are tiny insects that feed on wood and can cause major damage to homes. An infestation can destroy load-bearing walls, floors, roof beams, and other critical structural elements.
According to the National Pest Management Association, termites do over $5 billion in damage each year in the US alone. Treatment and repairs can cost thousands of dollars.
To limit financial risk, the VA requires termite inspections in areas with moderate to heavy infestation potential before approving loans. This ensures:
- The property is free of termites or damage is identified upfront
- Buyers don’t unknowingly purchase a termite-ridden home
- The home will retain its structural integrity and value
Termite inspections help protect veterans and the VA lender from inheriting expensive repairs down the road.
When Is A Termite Inspection Required For A VA Loan?
Whether a termite inspection is required for your VA loan depends on your location. The VA designates counties across the US as having low, moderate, or heavy probability of termite infestation.
- Low probability areas – No termite inspection required
- Moderate to heavy probability areas – Termite inspection is required
You can check the VA termite zone map to see if your county falls under the inspection requirement. Even if not mandated, it can be wise to get an inspection for peace of mind.
In general, southern coastal states have the highest probability, while mountainous and northern states have low infestation rates.
Who Pays For The VA Termite Inspection?
In the past, VA guidelines prohibited the veteran homebuyer from paying for the termite inspection. It had to be covered by the seller or lender.
However, the rules were changed in 2022. Now the veteran buyer has the option to pay for the inspection themselves. This gives more flexibility in negotiations with the seller.
The typical cost ranges from $50-$280 depending on the home’s size and the extent of the inspection. Shop around for the best rates.
What Is The Termite Inspection Process For A VA Loan?
When buying a home in a moderate to high probability zone, here are the basic steps for completing the termite inspection with a VA loan:
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Choose an inspector – Select a reputable company to perform the inspection. Look for experience, certifications, and positive reviews.
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Schedule the inspection – Set an appointment date and time that works for all parties. It’s usually done in conjunction with the general home inspection.
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Inspector examines the property – The inspection takes 1-2 hours. The inspector checks the home’s interior and exterior for signs of termites or damage.
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Receive the inspection report – The inspector provides a detailed report summarizing the findings and any recommended treatment.
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Make repairs if needed – If evidence of termites or damage is found, proper treatment and repairs must be made per VA standards.
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Obtain certification of work – For any treatments or repairs done, the veteran must provide certification that the work meets VA requirements.
Following these steps ensures you meet the termite inspection requirement when using a VA loan.
What Happens If Termites Are Found During A VA Inspection?
If the inspection turns up an active infestation or damage from past termite destruction, you’ll need to take corrective action to move forward with the VA loan.
The termite inspection report will outline recommended treatments, which may include:
- Applying termiticide chemicals
- Installing bait systems
- Removing damaged wood
- Replacing structural elements
As the buyer, you’ll need to negotiate with the seller on who pays for the treatments. Often it falls to the seller to perform the work prior to closing. Make sure all treatments adhere to VA specifications, which can be stringent.
Once treatments are complete, obtain documentation showing the work was properly done according to VA guidelines. This will allow the loan approval to continue.
Are Termite Inspections Required For VA Streamline Refinances?
If you’re refinancing an existing VA loan into a lower interest rate through the VA Streamline program, termite inspections are not necessarily required.
The main exception is if the VA appraiser assigns to evaluate your home notices visible signs of damage from wood-destroying insects. In that case, a termite inspection would be ordered to assess the scope of the problem.
Otherwise, you can refinance without an inspection since you already went through the process when first obtaining the VA loan. The Streamline program aims to make refinancing faster for veterans.
Can You Get A VA Loan Without The Termite Inspection?
Technically, it is possible to get a VA loan approved without completing the termite inspection. However, this would require you sign an agreement assuming full liability for any future termite treatments or damage repairs.
This is extremely risky, as you could be stuck with a costly infestation and no coverage from the VA. It’s strongly recommended not to skip the inspection if required for your area.
Key Takeaways On Termite Inspections For VA Loans
- Termite inspections are required in moderate to high probability zones before VA loan approval
- The inspection checks for termites, damage, and recommends treatment
- Buyers now have the option to pay for the inspection themselves
- If termites are found, corrective treatments must be done per VA specifications
- Inspections are not needed for VA Streamline refinances unless damage is visible
Protecting veterans and their families from purchasing termite-infested homes is the purpose of the VA termite inspection mandate. Now that you understand the process, you can move forward confidently with your VA loan purchase.
Frequency of Entities:
Rocket Mortgage: 2
Chase: 2
termite inspection: 18
VA loan: 28
inspection: 16
termites: 8
VA: 23
termite: 15
home: 9
damage: 5
infestation: 5
buyer: 4
inspector: 7
loan: 11
veteran: 6
repairs: 3
treatment: 4
Further exceptions for VA termite inspections
While many states require termite inspections for VA loans, they aren’t mandatory for all VA loan products. For example, termite inspections typically aren’t required for VA streamline loans, also known as IRRRLs (Interest Rate Reduction Refinance Loans), a loan product that aims to make refinancing faster and more affordable for veterans.
How does the VA determine which areas require termite inspections?
The VA relies on what’s called a Termite Infestation Probability Map, indicating which regions in the United States are most prone to termites. This map is periodically updated, and inspections are typically required for any areas with a “moderate to heavy” or “very heavy” chance of termite infestation. A full list of states and counties that require termite inspections is available on the VA website.
Uncover the Secrets of VA Loans: Paying for Termite Inspections
FAQ
Can a VA borrower pay for a termite inspection?
What paperwork does VA home loan need for termites?
What will fail a VA home inspection?
Is termite inspection required in Virginia?
Do Veterans need to pay for a VA termite inspection?
In nine states, a veteran might need to cover the cost of VA loan termite inspection, but in most cases, VA loan rules stipulate that the borrower isn’t allowed to pay. The states where veterans might need to cover the cost of VA loan termite inspection are: When Does a VA Termite Inspection Expire?
What pests are included in a VA termite inspection?
A termite inspection for a VA loan will typically look for more than just termites, but not for all pests. The VA pest inspection is generally limited to those pests which cause wood damage, such as termites, powderpost beetles, carpenter bees and carpenter ants.
Does VA pay for termite damage?
If there is an active infestation or damage, the issue will need to be addressed before your lender can fund the loan. The VA doesn’t specify who is responsible for paying for pest control or treatment of termite damage, so buyers and sellers will need to negotiate this cost on a case-by-case basis.
Does a VA loan require a termite inspection?
If you are using a VA (Veteran Affairs) loan to purchase a property or refinance an existing mortgage, the VA may require that the property have a termite inspection for the mortgage process. Any property purchased with a VA (Veterans Affairs) loan must meet the VA’s minimum property requirements.