VA Loan Termite Inspection and WDO Reports

VA termite inspections examine the entire accessible structure for evidence of wood-destroying insects and organisms. This includes termites of all species but also wood-boring beetles, carpenter ants, and wood decay fungi when present. The inspector checks all visible and accessible areas including foundations, crawl spaces, attics, garages, and interior rooms for active infestations, previous damage, and conditions conducive to future problems.

The inspection focuses on the dwelling itself plus attached structures like garages and porches that share foundations or rooflines. Detached sheds, fences, or landscaping timber typically fall outside VA inspection scope unless they create conducive conditions affecting the main structure. Inspectors document findings with written descriptions and often include photos showing evidence locations.

VA requirements distinguish between active infestations requiring treatment before closing and evidence of old damage that's been previously treated. Active termite activity must be eliminated and damage repaired to VA standards before loan approval. Previous damage documented as treated and inactive may not prevent closing but should be noted in the report with treatment history when available.

VA loan rules regarding who pays for termite inspection can cause confusion. The VA itself allows buyers, sellers, or real estate agents to pay for inspection. However, the VA prohibits buyers from paying certain fees that could be considered unreasonable or unnecessary. Termite inspection falls into a category where payment responsibility typically gets negotiated between buyer and seller during offer negotiations.

In many Florida markets, sellers traditionally pay for termite inspection and treatment when required. This custom varies by region and market conditions. Purchase contracts should specify who bears inspection costs to avoid disputes. When sellers pay for inspection, they typically order it proactively before listing or immediately after accepting an offer to streamline the closing process.

If inspection reveals active termites requiring treatment, the VA requires this treatment be completed before closing. Who pays for treatment also gets negotiated between parties. Sellers often handle treatment costs when responsible for inspection, but buyers sometimes agree to assume treatment costs in competitive markets. The purchase contract should address both inspection and potential treatment payment.

• Review your purchase contract for termite inspection payment terms
• Understand that VA allows but doesn't require seller to pay
• Factor potential treatment costs into offer negotiations
• Ensure contract addresses payment for both inspection and treatment
• Communicate clearly with lender about who ordered and paid for inspection

Florida's year-round termite activity means VA inspections here frequently identify termite evidence. This doesn't indicate sellers tried hiding problems. It reflects Florida's reality as the nation's highest termite risk state. Many older homes have termite history, and even well-maintained properties can develop new infestations between inspection and closing.

Inspectors often find evidence of old termite damage in Florida homes. If damage appears treated and inactive, it may not prevent VA loan approval. However, documentation of previous treatment helps. Sellers should provide treatment records when available. Without documentation, inspectors must assess whether damage appears active based on evidence.

When active termites are found, treatment must eliminate infestation and damaged structural components must be repaired or replaced. The VA requires repairs meet local building codes and restore structural integrity. Cosmetic damage like surface wood blemishes doesn't necessarily require repair, but structural members must be sound. A follow-up inspection confirming treatment success may be required before closing.