Who Pays for Termite Inspections on VA Loans? A Complete Guide

Purchasing a home is an exciting milestone in life. For many veterans and service members VA loans make buying a house more accessible and affordable. These government-backed mortgages come with many benefits like competitive interest rates, no down payment and limited closing costs. But VA loans have requirements beyond those of conventional loans. One key mandate is conducting a termite inspection in states where termites are prevalent. This begs the question – who pays for termite inspections on VA loans?

VA loans require termite inspections to ensure the homes they approve are safe, sanitary, structurally sound, and free of pests. Termites are wood-destroying insects that cause over $5 billion in damage annually, so the VA takes them seriously. Depending on your state and county, a pest inspection may be required, discretionary, or county-dependent for a VA loan.

Traditionally home buyers could not pay for termite inspections on VA loans. This deterred some sellers from accepting VA offers. But in June 2022, the VA changed its rules in select states to allow buyers to pay for inspections. This guide covers everything you need to know about termite inspection requirements costs, and payment for VA loans.

When Are Termite Inspections Required for VA Loans?

The main factor determining whether you need an inspection is location. The VA refers to this Termite Infestation Probability Map from the Council of American Building Officials (CABO) to mandate inspections.

States and counties shaded moderate to heavy require termite inspections for VA loans These include

States Requiring Inspection

• Alabama

• Arizona

• Arkansas

• California

• Connecticut

• Delaware

• Florida

• Georgia

• Hawaii

• Illinois

• Indiana

• Iowa

• Kansas

• Kentucky

• Louisiana

• Maryland

• Massachusetts

• Mississippi

• Missouri

• Nebraska

• Nevada

• New Jersey

• New Mexico

• North Carolina

• Ohio

• Oklahoma

• Pennsylvania

• Rhode Island

• South Carolina

• Tennessee

• Texas

• Utah

• Virginia

• Washington DC

• West Virginia

Discretionary States

In these states, inspections are only required if the appraiser notes wood-destroying insect damage or evidence of prior damage:

• Alaska
• Colorado
• Idaho
• Maine
• Minnesota
• Montana
• North Dakota
• Oregon
• South Dakota
• Wisconsin
• Wyoming

County-Dependent States

Some states mandate inspections in certain counties:

• Michigan
• New Hampshire
• New York
• Vermont
• Washington

Who Pays for Termite Inspections on VA Loans?

In the past, VA guidelines prohibited borrowers from paying for termite inspections. The seller or lender covered the costs instead. But in June 2022, the VA changed its policy for select states. Now, borrowers can pay for inspections in these 9 states:

• Alabama
• Arizona
• Arkansas
• California
• Florida
• Louisiana
• Mississippi
• Oklahoma
• Texas

This change aims to encourage more sellers to accept VA loan offers. But it’s still negotiable – sellers or lenders can agree to cover inspection costs if they wish.

For other states, traditional rules apply – the borrower cannot pay for the inspection. The seller typically pays, but the lender may cover it instead.

On average, expect to pay $50-$280 for a termite inspection. The final cost depends on your home’s size and your location. You may get a discount if combining it with a regular home inspection.

When Do Termite Inspections Happen in the VA Loan Process?

Pest inspections align with other required appraisals and inspections for VA loans. Oftentimes, the termite inspection occurs concurrently with the general home inspection.

Here is the typical timeline:

1. Get pre-qualified – Confirm you meet VA loan requirements and receive a pre-qualification letter.

2. Make an offer – Make an offer once you find a home you want to buy.

3. Enter escrow – After the seller accepts your offer, you enter the escrow period.

4. Order inspections – The lender orders the appraisal, termite inspection, and any other required inspections after entering escrow.

5. Complete inspections – The termite inspector visually checks the home and provides a report noting any infestations or damage.

6. Make repairs – If any issues arise, you’ll need to make repairs and treat infestations. A follow-up inspection may occur.

7. Clear conditions – The lender ensures all conditions from inspections are satisfied before closing.

8. Close on time – Once all conditions are met, you can close on time and get the keys to your new home!

How Long Are Termite Inspections Valid for VA Loans?

For VA loans, termite inspection reports are valid for 90 days. This provides sufficient time to close after the inspection.

But remember, just because an inspection is valid for 90 days does not mean your home will stay pest-free during that time. Termites and other pests can still invade. That’s why it’s smart to educate yourself on signs of termites and other wood-destroying pests. Be proactive about monitoring for any new infestations after your inspection but before closing.

Why Termite Inspections Matter for VA Loans

VA loans require termite inspections because these tiny pests can cause severe damage. Termites destroy wood rapidly and weaken the structural integrity of homes. The VA needs to ensure the homes it approves do not put veterans and service members at risk.

Beyond VA requirements, termite inspections are smart for all home buyers. Treatment and repairs for extensive termite damage can cost $3,000-$5,000 or more. Identifying issues early allows for treatment before major destruction occurs. The peace of mind from a clean inspection report is invaluable too.

Though burdensome, termite inspection requirements exist to protect VA borrowers. Take the time to understand the rules in your state and county. With some preparation, you can breeze through the inspection process. Before you know it, you’ll have the keys to your new home!