Pest Inspection On Va Loans: Termite And Pest Inspection Defined
What is a termite/passed inspection?
It is exactly what it sounds like, during the VA mortgage process, a termite inspection will be completed. This is to ensure a veteran is buying a sound home that will not have issues due to wood-destroying insects/ termites. It is common for this part of the process to be called a few different things. Some lenders may refer to this as a pest inspection, termite inspection, or a destroying insect report, but they all mean the same thing. This is an expense that cannot be paid for by the veteran. On a purchase transaction, this is something that the seller pays for. If this is a refinance transaction, the veteran will pay for the termite report and send the invoice to the lender. The lender will credit back the entire cost of the report.
Once again, this fee cannot be paid for by the veteran.
Why A Home Inspection Isnt Required
The VA requires a home inspection on new purchases because they arent familiar with the home. They dont know if there is termite damage or a cracked foundation. Maybe the roof only has a year left on it or the plumbing is bad. A regular appraisal will not show these things. Even those appraisers must make sure a home meets the Minimum Property Requirements, they are vague. The inspection lets lenders know the home is safe and sanitary.
Once the VA guarantees a loan on the property, they are on the hook for the loan. If you want to refinance and lower your payment, they dont require a home inspection. It wouldnt do much good. They already guaranteed the current loan. If there were issues with the inspection, the borrower could just keep their current loan. This doesnt help the VA. With the VA IRRRL, though, you get a lower payment. This could free up more money for you to fix any potential problems that exist.
Is A Termite Inspection Required For An Fha Loan
The lender must confirm that the property is free from termites and other wood destroying insects and organisms before the property can be financed with an FHA insured loan. The FHA lender is required to confirm the home is free of infestation or significant damage by viewing the FHA inspection report. via
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Is A Termite Inspection Required For A Conventional Loan
Getting all of your ducks in a row as a homeowner involves lots of inspections, particularly if you are seeking a conventional loan. Conventional loans sometimes have different stipulations than government-issued loans, leaving renovators and homeowners confused about what inspections are required.
One staple inspection of government loans that many wonder about is the dreaded termite inspection.
Lenders dont always require a termite inspection for a conventional loan, but it is common. A termite inspection is required for VA and FHA loans, and conventional loans in some cases. Private lenders dont always require a termite inspection for a loan.
Lets get into why termite inspection is not required for a conventional loan, but sometimes, it happens anyway.
Areas Are Conducive To Termites Were Noted
Always read this section of the report thoroughly, as this is the most overlooked area. Common remarks in this section include the following:
Wood debris in crawl space.
It is a good idea to remove pieces of wood from the house crawl space. Usually, the removal of wood pieces is not required.
Areas of the house containing wood are in contact with the ground
Therefore, wood in contact with the ground may cause an easier infestation. Typically, this is just a note for the homeowner to watch.
Signs of wood-destroying fungi on floor or crawl space
This will typically need correcting before closing.
Moisture readings at excessive levels
This is subject to a VA underwriters discretion, but for most lenders, levels over 20% require correction. Remedies include the installation of a dehumidifier or a moisture barrier. A moisture barrier is a sheet of plastic covering the crawlspace ground. Thus, it keeps excessive moisture from damaging the house. Also, consider if opening crawl space vents are preferable.
Damage to the house by the water, pest infestation, or fungi
If this language appears, repairs are required. Correction and verification by a professional licensed contractor is the typical method of correction. Furthermore, if the level of damage could be structural, a structural engineer inspection may be required.
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What If A Home Doesnt Meet Va Requirements
Again, a VA appraisal is carried out to ensure that the home is safe and meets minimum standards. This is for your safety and to hedge the VAs downside, as they are guaranteeing the loan.
Sometimes, your ideal home may not live up to these requirements. This doesnt mean that you will lose financing, but rather any outstanding issues must be addressed prior to closing.
Depending on the issues, the home seller might be willing to make the required repairs. If not, you can always pay for the repairs out of your own pocket.
Either way, the VA minimum property requirements must be met if you want to secure financing on the home with your veterans benefits. Remember, these requirements ensure the property is safe and sound.
If a home doesnt meet the minimum property requirements, you should consider whether its even worth buying, for your own safety and peace of mind.
If you dont think a particular home is right for you, dont panic. we know youll find the perfect one.
Learn More With National Home Loans
The professionals at National Home Loans are proud to offer service members, veterans and military families affordable VA home loans. We work one-on-one with buyers to ensure that their objectives are met. Obtaining termite clearance is one important step in preparing a property for a sound and sanitary environment. Learn more about our services and let us help you open the door to the home of your dreams.
John Giannattasio is an independent mortgage broker based in San Diego. He brings a wealth of diverse business knowledge and experience to his mortgage practice, which results in a stress-free, seamless, and strategic experience for his clients.
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Documents Required To Start The Va Home Mortgage Process
You will want to send or upload the following documentation:
- Last 60 Days Bank Statements to source money for closing costs
- Last 30 Days Pay Stubs
- Last Two Years W2S
- Last Two Years Tax Returns not always needed
- Drivers License or State ID
- Certificate of Eligibility from VA
Once your loan officer has your credit profile and required documentation, a preapproval letter will be issued to you. It is important not to stretch your budget. Just because your debt to income may qualify you to a certain payment, it is important to keep your housing payment affordable. It is critical to discuss your monthly budget with your loan officer and create a comfortable housing budget. As you can tell from this article, we are experts in VA mortgage financing. We offer competitive interest rates, manual underwriting, and no overlays on all our VA mortgage products. This sets us apart from the competition. If you are not getting direct answers from your current loan company or have been turned down for qualifications, we encourage you to call us today. Once again, contact us at Gustan Cho Associates at 630-659-7644 or you can send an email to We are available seven days a week to help you and your family with any mortgage questions. We look forward to hearing from you in the near future.
What Can I Expect From A Termite Inspection
A Termite Inspection is a visual inspection of the readily accessible areas of a home for evidence of termite activity and or termite workings/damage. The inspector will visually inspect the interior and exterior of the home or building including any accessible roof cavities or roof void, and sub-floor areas. via
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Who Pays If The Home Is A Short Sale
Often with short sales, the owners lien holder will allow a credit for VA required repairs. If this is the case, the seller will not have to personally pay for the repairs as they will be billed to escrow.
Passing a VA home loan inspection is not as difficult as most agents and sellers believe. As long as the home is in decent condition, it should be easy to receive VA approval.
If you are seller and would like to sell your home to a veteran, visit: VA Loans
Termite Inspection Requirements For Other Loan Types
Again, this depends on the lender. Some lenders require a termite inspection on all loans, while other lenders do not expect them. Foremost, if an appraisal mentions possible termite damage or moisture issues, a lender will require an inspection.
OVM Financial usually does not require a termite inspection for existing construction unless the appraiser requires one. Although, if there is a termite inspection fee on the closing disclosure, we must see the report. Then, if there are issues, they must be corrected. In the end, a termite inspection is a small price to pay to feel comfortable with the home structure.
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Do Va Appraisers Lowball
Sometimes the VA appraisal is lower than the asking price, and sometimes it is higher. The VA loan guaranty amount is based on whichever dollar amount is lower. When the appraisal is lower than the asking price, it essentially means that the lender does not place a value on the home as high as the seller.
How Do Conventional Loans Compare To Fha Loans
Generally speaking, conventional loans tend to have higher interest rates than FHA or VA loans. There are several ways that FHA loans differ from conventional loans, and conventional loans are harder to get.
There is more flexibility when it comes to both FHA and conventional loans. For example, some lenders may grant a conventional loan to borrowers with a . However, that same lender may impose a higher interest rate unless your score is 620.
Down payments for conventional loans are only as low as 3% if your credit score is 600-620. Otherwise, you may have to make a down payment closer to the 3.5%-10% range of FHA loans. If you have great credit and little debt compared to income, passing a termite inspection can land you a loan.
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Should I Get A Termite Inspection If Its Not Required
Even if its not required by either your lender or your insurance company, it is absolutely recommended to still obtain a termite inspection. This recommendation applies to both the home-buying process and general maintenance as a homeowner. In fact, you should have your home inspected for termites at least once a year, as these pests are persistently feeding and rummaging around your neighborhood.
If you neglect to have an inspection done before purchasing a home, you could end up in a grave money pit. On the other hand, if you are a homeowner who decides to opt out of regular inspections, you will be unaware of possible infestations. As a result, youll put yourself in serious trouble when it comes to repairs while living in the home or that must be completed before you can sell it.
Purchasing a home is a major milestone in your life. This is simply not the time to cut corners and you should always have a termite inspection done, even when its not required.
Do You Need A Termite Inspection For Homeowners Insurance
In most cases, yes, passing a termite inspection is required for homeowners insurance. Because homeowners insurance is a stipulation for a conventional loan for many lenders, you may need a termite inspection done anyway.
Whether or not a termite inspection is required will typically depend on the individual insurance providers policy. Even if your lender doesnt require a termite inspection for the loan, chances are that youll still need to get one for the sake of insurance.
That is why there is a consensus that termite inspection is required for homeowners insurance, even though technically, it is not. Speak with your lender to see if they require insurance and, from there, speak to the insurance company about their conditions.
Regardless, it is always in your best interest to have homeowners insurance, anyway. Its important to note that the majority of insurance companies do not cover the cost of damage caused by termites. The reason for this has to due with the belief that these pests are preventable with proper maintenance and regular inspections.
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Starting The Va Home Mortgage Application Process
The application process:
The application process has become incredibly simple with advancements in technology. First, you will call Mike Gracz on 630-659-7644. You and Mike will have a consultation about your qualifications. Assuming there are no obstacles, Mike will pair you with a licensed loan officer in your state. You will then complete an online application that will give your loan officer permission to pull your credit and start your file.
What Does The Va Loan Home Inspection Require
The VA Loan Home Inspection Requirements. Before guaranteeing a loan, the United States Department of Veterans Affairs wants to ensure that the home you wish to sell or buy is a worthy investment. Part of ensuring this is by performing the VA home loan inspection. This mandatory inspection is an appraisal and visual inspection combined.
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Will The Va Approve A Fixer Upper
VA rehab and renovation loans offer veterans and service members a low-cost, no-down-payment way to purchase fixer-uppers or homes in need of some extra TLC. Through VA renovation loans, borrowers can finance both the purchase price and necessary repairs, or refinance and repair an existing home. via
At Terminix We Are The Experts In Termites And Other Household Pests Not Home Loans And Mortgages We Included A List Of Additional Resources At The Bottom Of This Page For More Information Regarding The Interplay Between Pest Control And Home Loans
Typically, before agreeing to buy a home, you have the option to have any number of home inspections done, including a general inspection, radon inspection, pest inspection and more. Keep in mind that what many people refer to as a “pest inspection” is actually a termite inspection.
If you are using a VA 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 loan must meet the VA’s minimum property requirements. These requirements are intended to ensure the buyer is purchasing a safe, sanitary and structurally sound property. If the property you want to buy using a VA loan is in an area where the probability of termite infestation is rated as moderate to heavy or very heavy, the VA requires that the property be inspected by a termite control professional who meets all the requirements of the state where the property is located.
You can find a list of VA loan termite inspection requirements for VA home loans by the state on the U.S. Department of Veterans Affairs website.
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Can A Va Buyer Pay For A Termite Inspection
According to the VA, A wood destroying insect inspection is required in low-rise and high-rise units only when the fee appraiser observes a potential problem. On a VA purchase loan, borrowers in all but nine states are not allowed to pay the pest inspection fee. VA borrowers can pay this fee on any VA refinance loan.
What Does A Pest Inspector Look For
During the termite inspection for a VA loan, a termite control professional will look at the exterior and all accessible areas of the home’s interior, including the attic and/or crawl space. The inspection will include looking for the actual pests, as well as their tell-tale signs, such as damaged wood and insect droppings, or discarded wings and mud tubes. Different signs of termites can help identify the species of termites as well.
Once the inspection is completed, the termite control professional will provide a report or certificate that outlines infestation or damage. The form will also outline recommended treatments and the limits of the inspection.
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Contact Ovm Financial For A Va Loan
If you are interested in a VA home loan to finance up to 100% of the purchase price of a new primary residence, contact our VA loan experts today. We can answer all of your questions to help you feel more at ease when purchasing your dream home, so it is not a nightmare!
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So What Are Va Loan Inspection Requirements
Well, there you have it. The VA loan inspection requirements are simple, but should not be taken lightly. If a property doesnt meet these requirements, you have ample opportunity to fix any issues.
If the seller isnt willing to help, chances are the home isnt right for you, so keep looking. And of course, make sure to check out our other resources on VA loans.
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The Va Loan Home Inspection Requirements
Before guaranteeing a loan, the United States Department of Veterans Affairs wants to ensure that the home you wish to sell or buy is a worthy investment. Part of ensuring this is by performing the VA home loan inspection. This mandatory inspection is an appraisal and visual inspection combined. Its purpose is to to check for any damages or defects in the home that lower its overall value or risk the safety of its occupants.
Some examples of these types of defects are broken windows, lack of proper heat, unsafe electricity, holes or damaged roof, termite infestation, non-functioning plumbing, etc.
The safety and security of the VA buyer is written into the Code of Federal Regulations. The intention of the VA loan was to provide safe and easy access to homes returning form World War II.
These habitability elements require the home to be safe, sound, and sanitary. The safety aspect of the inspection is not only for the safety of the buyer and their families but also the safety of loan providers as well.
In order to pass the VA home loan inspection, its important to abide by the guidelines set about by the U.S. Department of Veterans Affairs.