VA LOAN CAPTAIN BLOG & Learning Center

Termites and VA Loans

By: Grant Moon 11/06/14 12:14 pm

You know how important it is to get a home inspection. While a service not required by a VA lender, an inspection will tell you more about the condition of the property than you can find on your own. Many times, issues are discovered that can motivate a buyer to lower an offer or ask the seller to fix the repairs. But what a licensed home inspector cannot do is look for termites. That calls for a licensed pest inspector.

Depending upon where you live, termite inspections may be mandatory. Of the 50 states, 33 require a termite inspection. For those areas where a termite is not required, if an inspector or appraiser sees evidence of current or past termite damage, the lender will require more investigation.

A termite expert is then called to determine if the damage noted is in fact from termites. If there are no termites but obvious damage, the inspector will need evidence the previous termite issue was remediated, this in the form of a receipt or statement of work documenting the infestation was cured. If there are active termites in the house, they must be destroyed.

Recall the VA restricts the veteran from paying certain closing costs. In states where termite inspections are required, the buyer is not allowed to pay for the inspection, the seller must. However, paying for repairs is allowed to be paid by the veteran.

There may be another issue regarding termites called “conducive conditions.” This term means something about the property encourages termite infestation even though no current or previous termite activity. A conducive condition may be a stack of firewood that touches the house, a wooden deck in contact with the structure. Even tree limbs that are touching the home can be considered conducive. In every instance, the conducive conditions must be corrected.

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