If you’re a veteran looking to purchase a home, there are few options more appealing than a Veterans Affairs (VA) home loan. These loans don’t require a down payment or private mortgage insurance (PMI), have low interest rates, and reduced closing costs. However, if you’re using a VA loan, there are a few requirements you’ll have to meet before you’re approved, specifically the VA’s Minimum Property Requirements (MPRs). MPRs are a set of criteria designed to ensure that homes funded by VA loans are safe, structurally stable, sound, and sanitary.
Within MPRs, one of the most important criteria is to check if the property is suffering from wood-destroying insects, specifically termites. Termites are some of the most destructive pests out there, causing over $5 billion in damage to over 600,000 homes annually. Because of this, the VA wants to make sure the homes it approves for veterans are free of these wood-destroying pests. However, termite inspection requirements vary by state, which we cover below.
How the VA Determines Which States Require Termite Inspections
Thankfully, not all states have these pests, and the VA uses this termite distribution map to determine whether an inspection is required or discretionary.
If your home is in an area with a moderate to high population of termites, like most states along the Southeastern portion of the U.S., you’ll likely be required to have a termite inspection. For states with low or nonexistent termite populations, an inspection will be discretionary, depending on the findings of your VA appraiser.
States That Require Inspection for a VA Loan
For states where these wood-destroying insects are common, potential homebuyers are required to get an inspection. While this may feel like an extra hoop to jump through, termite inspections help homebuyers by verifying their home is a sound, safe investment. Homes within the following states require a VA termite inspection:
- Alabama
- Arkansas
- Arizona
- California
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Iowa
- Illinois
- Indiana
- Kansas
- Kentucky
- Louisiana
- Massachusetts
- Maryland
- Mississippi
- Missouri
- North Carolina
- Nebraska
- New Jersey
- New Mexico
- Nevada
- Ohio
- Oklahoma
- Pennsylvania
- Rhode Island
- South Carolina
- Tennessee
- Texas
- Utah
- Virginia
- West Virginia
- Washington, D.C
Discretionary States
If you live in a state where termites are less common, the VA program will not automatically require you to get a termite inspection. These are called discretionary states and only require inspections if a VA appraiser determines it necessary, usually in the face of existing or prior wood-destroying insect damage.
Discretionary states include the following:
- Alaska
- Colorado
- Idaho
- Maine
- Minnesota
- Montana
- North Dakota
- Oregon
- South Dakota
- Wyoming
- Washington
Discretionary, County Dependent States
For some states, termites might only be a problem in specific areas while practically nonexistent in others. In these situations, the VA will have county-specific requirements, meaning that you may need a termite inspection by default if you live in certain counties within the following states:
- Michigan
- New Hampshire
- New York
- Vermont
- Wisconsin
Impact of Termite Inspections on VA Loan Approval
Termite inspections are a necessary part of the VA loan approval process in several states. In states with high termite activity, a clear inspection report is required before the loan can be approved.
This requirement verifies that the property you plan on purchasing meets the VA’s Minimum Property Requirements (MPRs) for safety and structural integrity. If your inspector finds termite damage, the seller must have it repaired before the loan can proceed. In this case, the closing of the home will likely get delayed.
Who Pays for the Inspection?
Termite inspections can cost anywhere from $50 to just under $400, depending on your area, home size, and pest control company. In the past, homebuyers applying for VA loans were not allowed to pay for termite inspections, instead putting the responsibility on either the seller or lender.
As a result, some sellers would look unfavorably on VA loans, sometimes passing them up for other deals. To combat this, in June of 2022, the VA updated its rules to allow homebuyers to pay for termite inspections, but only for certain states.
Nine States That Require VA Borrowers to Pay for the Inspection
Below is a list of the states where the VA allows loan applicants to pay for termite inspections:
- Alabama
- Arkansas
- Arizona
- California
- Florida
- Louisiana
- Mississippi
- Oklahoma
- Texas
Final Thoughts
VA loans allow veterans to purchase homes more easily through their low rates, lack of down payment, and not requiring a PMI. At the same time, the VA wants to ensure veterans are moving into homes that are safe, stable, and pest-free. This high standard requires homes to be reviewed by an appraiser and, depending on the state, a termite inspector. We recommend homeowners, regardless of their mortgage option, take advantage of early home and termite inspections. These early pest inspections help protect the homeowner and allow them to detect termite issues before they become a problem, potentially saving them thousands later.
Frequently Asked Questions
What Is a VA Loan?
A VA loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs, offering benefits like no down payment and lower interest rates to eligible veterans and service members.
What Is a Termite Inspection?
A termite inspection is a professional assessment of a property to detect the presence of termites or other wood-destroying insects and any damage they may have caused.
How Long Is a Termite Inspection Good for a VA Loan?
For VA loans, a termite inspection is typically valid for 90 days from the date of inspection.
How Much Does a Pest Inspection Cost?
Pest inspections for VA loans usually cost between $50 and $300, depending on the property size and location.
Do New Home Constructions Require an Inspection as Well?
Yes, new construction in termite-prone areas still require inspections for VA loans, but they may qualify for alternative documentation like a builder’s warranty.
Can I get a VA loan if termites are found during the inspection?
Yes, but any termite damage must be repaired before the loan can close. The repairs are typically the seller’s responsibility.
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