Pest Inspection Requirements for VA Loans

VA Loan Requirements for a Pest Inspection

Don’t let your dream home become a nightmare because of unwanted guests!  VA purchases in NC, SC, and Virginia require a pest inspection by a licensed professional.  A termite report is another name for a pest inspection.  The actual form used in NC & Virginia is a Wood Destroying Insect Report (WDIR).  In SC, the form is a CL100.  A VA streamline refinance, called an IRRRL, is the only exception to this VA requirement.  A VA IRRRL allows military or Veterans to refinance their current VA loan to better terms.  Ultimately, VA requires the pest inspection to ensure the home is free of safety and termite infestation issues.

Most Popular Pest Inspection Questions:

Basically, the 4 most popular questions come down to the following.

  1. Is a termite inspection required?
  2. Are the termite inspection report findings an issue?
  3. What needs to be fixed on my WDIR or CL100?
  4. How long is the termite inspection good?

So below we mention important tips.  These tips include requirements for certain issues mentioned on a WDIR or CL100 report.

How Long is a Pest Inspection Good For?

The length of time before a pest inspection expires varies between lenders.  Our pest inspections or termite reports are good for 90 days from date of inspection.  This is much longer than the typical 30 days required by many.

Tips To Remember About Termite Inspections and VA loan:

va home loan requirements on a termite or pest inspection
VA home loan requirements on termite or pest inspections
  • VA states the Veteran may not pay for the termite inspection under any circumstances.  So that means that the seller, realtor, or mortgage company must pay for this inspection.  As long the Veteran does not pay for it.
  • Purchases with a VA loan always require a pest inspection
  • VA cash out refinances require a termite inspection too.  But on a refinance, it may be paid by the Veteran.
  • Don’t wait until the day of or before closing to provide the WDIR or CL100.
  • Generally the pest inspection must be 30 days prior to closing
  • If the home is new construction, the seller or builder must provide proof of the termite treatment type.  Types of treatment include bait system, wood, or soil.
    • Form HUD-NPCA-99-A completed and signed by the builder.
    • Form HUD-NPCA-99-B if the builder used the soil treatment method.

What are Pest Inspectors Looking For?

  • Signs of active or previous infestation of wood destroying pests
  • Signs of previous treatment
  • Areas conducive to subterranean termites
  • Moisture issues
  • Damage caused by termites and/or moisture

Pest Inspection Issues and Common Ways to Correct Them

Typically the seller pays for any treatment or repairs mentioned below.  The reason is that it would be difficult to sell the house.  Additionally, a buyer would have a hard time financing the house.  So check out these common circumstances and requirements.

  • Evidence of “active infestation”.  A licensed professional must treat any active infestation.  The inspector will note any areas that require treatment.  Before closing, proof of treatment must be supplied.
  • Visible evidence of previous treated infestation which now appears to be inactive.  This is ok since there is not active infestation.  Just like above, the inspector will state the location of the previously treated areas.
  • Areas are conducive to termites were noted.  Always read the remarks section thoroughly.  It is quite common to receive a report with issues mentioned in this section.  But the email sent by the Realtor or buyer says, “attached is a clean report”.

    Common remarks on a pest inspection:

    • Wood debris in crawl space.  It is a good idea to keep pieces of wood from underneath a house.
    • Areas of the house containing wood are in contact with the ground.  If wood touches the ground, then infestation chances increase.  This is typically just a note to the homeowner.
    • Signs of wood destroying fungi on floor or crawl space.  Typically this must be corrected prior to closing.
    • Moisture readings at excessive levels.  This is subject to underwriter’s decision but typically over 20% can be an issue.  Usually a dehumidifier and /or a moisture barrier will be recommended.  A moisture barrier is a sheet of plastic covering the ground in the crawl space.  This barrier shields the home from moisture damage.  Another quick remedy is to open vents to the crawl space of the home.
    • Damage to the house by water, pest infestation, or fungi.  These items would need to be corrected and then verified by a professional licensed contractor.  Sometimes a structural engineer must inspect the home.  This depends on the level of the damage.

Other Reminders for Termite Inspections

Keep in mind that each report and each scenario can be different.  So the requirements could vary as well.  Most importantly, the buyer and their representatives feel comfortable with the report findings and repairs.  It is always a good idea to show these reports to all parties early in case there are issues to correct.  Too often, the pest inspection is provided too late in the process.  Then, there is not only a problem, but a problem that needs fixing ASAP.

Other types of loans may not require a pest inspection unless the appraiser mentions potential issues.  Sometimes the purchase contract requires a pest or termite inspection.  In the end, it is a small amount of money to spend to feel more comfortable about the home structure.

If you want to learn more about VA Loans, check out our VA Main Page.

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Written By: Russell Smith

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