A VA loan termite inspection is not required on every purchase, but it is required in many of them, and the VA limits what can be charged and to whom. Whether one applies depends on what the appraiser sees, what your state’s custom is, and what the purchase contract or the investor’s conditions say. Duane Buziak, NMLS #1110647, is a VA loan specialist licensed in VA, FL, TN, and GA, and this guide covers when the inspection applies, what it covers, who pays, and what happens when it comes back with bad news.
When a VA Loan Requires a Termite Inspection
By Duane Buziak, NMLS #1110647. I work as an independent broker, not a direct lender. That matters here because the termite rules come from the VA and the investor funding your loan, and I can take a file with complications to any of 500+ wholesale lenders. Veterans United (620 minimum FICO), Rocket, and Movement each work from a single rate sheet and their own conditions. My VA floor is 500 FICO, though approval always depends on the full file.
The VA does not mandate a wood-destroying insect (WDI) inspection on every loan. It typically comes into play in one of three ways:
- The appraiser flags it. If the VA appraiser sees signs of wood-destroying insects or related damage, the appraisal can require an inspection or repairs as a condition.
- Local or state custom. In many markets a WDI report is a standard part of every sale, and the VA appraisal process and local practice line up with that.
- A contract or investor requirement. The sales contract, the seller’s agent, or the investor may call for a report even when the VA itself does not.
The underlying standard is the VA’s Minimum Property Requirements (MPRs). These require that a home be safe, sound, and sanitary. Termite damage that weakens framing, floors, or other structural components can make a property fall short of that standard. The current wording is in the VA Lenders Handbook (Pamphlet 26-7), Chapter 12 on Minimum Property Requirements, and the VA does update that guidance, so check it rather than relying on a summary from anyone, including me.
Practice also varies by state. Inspections are routine in Virginia, Florida, Tennessee, and Georgia, where warm, humid conditions favor subterranean termites, but “routine” is a market custom, not a statewide VA rule. Your agent and I confirm what applies in your county before you spend money on anything.
What a Wood-Destroying Insect Inspection Covers, and What It Misses
A WDI or termite inspection is a visual examination by a licensed pest professional of the accessible areas of a property for wood-destroying insects, mainly termites, but also carpenter ants and wood-boring beetles. Results are usually documented on a standardized form. In Virginia the common form is the NPMA-33, and the Virginia Department of Agriculture and Consumer Services oversees pest control licensing. Florida uses its own state form under FDACS. Confirm the current form with your inspector.
The report separates three findings that people often blur together:
- Active infestation: live insects or fresh evidence of them.
- Prior treatment evidence: stickers, drill holes, or bait stations showing the property was treated before. This is not a current problem, but it is worth asking about.
- Damage: wood that has been compromised, whether or not the insects are still there. Old damage from a treated infestation still needs evaluation.
Inspectors look for mud tubes on foundation walls and crawlspace piers, frass (insect droppings) near wood, hollow or blistered wood, discarded wings, moisture conditions that invite insects, and any treatment history on the property.
A clean report is not a guarantee. It is a snapshot of what was visible and accessible on one day. Insulated attics, finished walls, and areas behind stored belongings can hide activity. Some sellers or companies offer a warranty or bond, which is a separate product from the inspection.
It also helps to know which professional sees what:
- Termite inspection: specifically for wood-destroying insects and related damage.
- General home inspection: a broader look at systems and structure that may note moisture or suspected damage but is not a substitute for a WDI report.
- VA appraisal: sets value and checks the MPRs. The appraiser is not a pest inspector, but can note visible signs and call for a report.
Who Pays for the Termite Inspection on a VA Loan
Under the VA’s fee rules, a veteran may pay for certain items and is barred from paying others, which the VA calls non-allowable fees. The termite inspection has traditionally been treated as something the veteran may pay for, and the seller may pay for it as well. Because the VA revises its list of allowable and non-allowable charges, check the fee guidance in the VA Lenders Handbook and the VA’s closing cost page before assuming anything. I verify the current list on each file instead of working from memory.
That contrasts with a common misconception that the veteran can never pay for inspections or repairs. What the VA restricts is specific categories of fees, not the veteran’s ability to fund a sensible inspection. Another misconception is that the VA always requires the report. Sometimes the buyer’s own caution or a contract term drives it.
In practice, who pays is settled in the purchase contract:
- In some markets the seller customarily orders and pays for the WDI report.
- In others the buyer orders it as part of due diligence and pays at the time of service.
- Either side can negotiate a different split, and the contract should say so in writing.
Cost depends on the size of the home, the region, and whether a crawlspace is involved. I will not quote a market average here without a source. Ask two local inspectors for a price, or ask your agent what is typical in your county.
Duane Buziak can help structure the deal around these costs. Seller concessions can offset closing costs, and I offer no-out-of-pocket closing options on qualifying purchases, meaning little to nothing out of pocket at closing depending on the contract, the seller’s contribution, and the loan terms. Nothing here is a guarantee, and every structure has to stay inside the VA’s concession limits, covered in the next example.
What Happens When the Report Finds Termites or Damage
A failed or flagged report starts a sequence. It is manageable when you know the order:
- Report. The inspector documents active infestation, prior treatment, or damage and usually recommends treatment.
- Treatment. A licensed pest company treats the property. This is normally arranged and paid for by the seller under the contract, though terms differ.
- Repair. Damaged wood is repaired or replaced. Minor damage may be handled by the pest company or a handyman. Structural damage may need a licensed contractor, and the investor or appraiser may want a written certification that the repair is complete.
- Clearance. The pest company issues a clearance letter or updated report showing the treatment is done.
- Reinspection. If the VA appraiser required repairs as a condition, the appraiser or a fee inspector returns to confirm completion before closing.
Your options as the buyer depend on your contract. You can ask the seller to treat and repair, negotiate a price reduction or credit, or, if you have an inspection contingency, exit the deal within the contingency window. Keep in mind that when the VA appraisal makes a repair a condition of the loan, a credit alone usually does not satisfy it. The work generally has to be completed and documented. The seller can also refuse, and then you are choosing between renegotiating, absorbing the cost, or walking away.
The other risk is time. Treatment scheduling, contractor availability, and a reinspection can push past your closing date, and a rate lock has an expiration date. Extending a lock often costs money, so build slack into the timeline from the start.
This is where independence helps. If an investor’s condition on a particular file becomes a roadblock, a broker can compare how other wholesale investors handle the same issue and move the file if the loan allows it. A direct lender has one set of overlays and one path. I cannot promise a different outcome, but I can put the file in front of more options.
Worked Example: Termite Costs on a $350,000 VA Purchase
The numbers below are hypothetical, chosen to show the arithmetic. They are not market data. Suppose a first-time VA user buys a $350,000 home with 0% down.
The VA funding fee for first use with no down payment is 2.15% as of the current schedule on the VA funding fee page, and it can be waived for veterans receiving VA disability compensation. Assuming it applies and is financed:
- $350,000 x 0.0215 = $7,525 funding fee
- $350,000 + $7,525 = $357,525 total loan amount
Now assume a $600 inspection, $1,800 treatment, and $4,000 structural repair, totaling $6,400. Three ways it could play out:
- Seller pays all. The seller covers $6,400 under the contract. Your cost: $0.
- Seller credit. You pay the $600 inspection, and the seller gives a $5,800 credit toward your closing costs for treatment and repair. Your cost is $600 up front, offset at closing. Caveat: if the appraiser made the repair a VA condition, the work generally still has to be done.
- You pay inspection only. You pay $600 and the seller performs $5,800 in treatment and repairs before closing.
On concessions, the VA generally caps seller concessions at 4% of the reasonable value. On this home, 4% of $350,000 = $14,000. The $5,800 credit is about 1.66% of the price. The VA treats some items, such as customary closing costs and discount points, differently from concessions, so ask me how your specific contract is counted. Confirm the current rules in the VA Lenders Handbook before you sign.
VA Termite Inspection Requirements Compared: Broker vs. Direct Lenders
Termite conditions come from VA rules and the investor, so the inspection itself is largely the same no matter who originates your loan. What differs is credit flexibility and how many investors can take a file that has complications. Figures below are as of publication and should be verified with each company.
| Company | FICO Min (VA) | Lender Type | Loan Shelf | Fees | Pre-Approval Credit Pull | Processing Flexibility |
|---|---|---|---|---|---|---|
| VaLoansPro.com (Duane Buziak) | 500 | Independent broker | 500+ wholesale lenders | Broker-negotiated, shop-able | NoTouch Credit Pull (soft pull) | Can move a file among investors |
| Veterans United | 620 | Direct lender | Single VA-specialty shelf | Origination fee on the higher side | Verify with company | Single-investor conditions |
| Rocket Mortgage | Varies, no public VA floor | Direct lender | Single shelf | Verify with company | Hard pull before real numbers | Single-investor conditions |
| Movement Mortgage | 580 | Direct lender | Single shelf | Verify with company | Hard pull at application | Single-investor conditions |
Veterans United deserves credit for its VA-only specialization, and its files are handled by people who know the program well. My advantage is structural: 500+ wholesale lenders give me more leverage than one rate sheet, Duane Buziak is ranked #114 nationally on Scotsman Guide’s Top Originators list, and the digital side is covered by the NoTouch Credit Pull.
NoTouch Credit Pull is a soft credit pull mortgage option: I review your credit without a hard inquiry, so pre-qualification does not touch your score the way a standard hard-pull pre-approval does. It gives you a no hard inquiry mortgage pre approval path before you commit to spending on an inspection or appraisal.
Start With Numbers Before You Order the Inspection
A termite inspection protects the biggest purchase you will make, and who pays for it is negotiable within the VA’s rules. The best order of operations is to know your loan options first, so you are not paying for reports on a file that will not qualify.
Start with a NoTouch Credit Pull, then call VA Loans Pro by Duane Buziak at 804-212-8663. I work with veterans in Virginia, Florida, Tennessee, and Georgia, and I will tell you plainly what your file needs.
Frequently Asked Questions About VA Loan Termite Inspections
Is a termite inspection required for a VA loan?
Not on every loan, but often. It is usually triggered by the VA appraiser’s findings, local custom, or a contract or investor requirement. Check the VA Lenders Handbook for current wording.
Who pays for a termite inspection on a VA loan?
Either the buyer or the seller may pay, as set in the purchase contract. Confirm current allowable fee rules with your broker before you commit.
How much does a VA termite inspection cost?
It varies by region and property size. Ask two licensed local inspectors for quotes instead of relying on a national average.
What if termites are found during a VA loan inspection?
The property is typically treated, damage repaired, and a clearance letter issued. If the appraiser required repairs, a reinspection may be needed before closing.
Can the seller refuse to treat termites?
Yes, unless the contract requires it. You can then renegotiate, absorb the cost, or exit under your inspection contingency if you have one.
Does a VA appraisal check for termites?
The appraiser is not a pest inspector, but will note visible signs of wood-destroying insects or damage and can require a formal report or repairs under the Minimum Property Requirements.
How long is a termite report valid?
There is no single rule. Validity is set by the investor, the contract, or local practice, and is commonly measured in months. Ask your broker what applies to your file.
Can I get a VA loan with a low credit score and a termite issue?
Possibly. Through VA Loans Pro by Duane Buziak, VA financing is available down to a 500 FICO, though approval is never guaranteed and the termite condition must still be resolved.
Disclaimer: This article is for general information only and is not financial or legal advice. Rates, fees, and VA rules are subject to change, and nothing here is a guarantee of approval or a specific rate. Consult a licensed professional about your situation. Equal Housing Opportunity.
About the author: Duane Buziak, NMLS #1110647, is a VA loan specialist and independent mortgage broker serving veterans in Virginia, Florida, Tennessee, and Georgia. He is ranked #114 nationally on Scotsman Guide’s Top Originators list and has earned more than 1,400 five-star reviews. Read Duane’s full background on the About page.