VA home loan requirements regarding termite clearance are very special and a little different than FHA home loans and conventional home loans. VA loan guidelines require that all properties getting a VA loan have a termite clearance. What this means is that VA home loan lenders will require all borrowers to have a termite clearance report from a licensed pest control company stating that the property is free of active infestation before they will fund the loan. This means that if the initial termite inspection shows any section 1 termite damage, this will have to be fixed before VA home loan lenders will fund the VA loan on the property. Section 2 items in a termite report generally refer to items that could lead to further termite damage. Generally VA home loan requirements do not require section 2 work to be completed, but there are cases if the section 2
work involves an active leak that the VA lender will require this work to be completed as well.
It is important to note that VA financing prohibits the VA borrower from paying for the initial termite inspection. Many times termite companies will do initial inspections for free or a small fee. Generally the seller or the Realtor will cover this cost. However, VA lenders vary on if the VA borrower can pay for the termite repairs if they are needed to get a termite clearance. Some VA lenders allow the VA borrower to pay and some do not. In many cases the seller will pay for termite repairs. But on short sales and REO’s often times the seller will not pay for these repairs. In these cases you need to work with a VA lender that allows the borrower to pay for termite repairs (we are a VA lender that allows this).
FHA and conventional home loans differ in that a termite clearance is not required unless the buyers ask for it in writing the purchase contract. However as stated above, VA home loan guidelines require a termite clearance in every case (except for VA IRRRL streamline refinances).
So I hope this helps you better understand VA loan requirements regarding termite reports. If you would like to be approved for a VA loan in California please don’t hesitate to call 858-922-7899 or email .
Below are some of very latest up-to-date VA loan benefits:
- VA loan credit does not have to be perfect. In many cases you can get a VA loan in California down to a 600 credit score. We are experts in credit evaluation and helping borrowers improve scores so don’t hesitate to call if you have VA loan credit questions.
- VA loan limits in California go up to $1 million in Bay Area places such as San Jose area and San Francisco area. Los Angeles and Orange County go up to $697,000 with 100% financing. San Diego VA loan limit is $537,750. You can go above the VA loan limits with 25% down of the difference between purchase price and county VA loan limit.
- VA financing is STILL 100% zero down financing
- VA loan interest rates are still hovering around 60 year lows
Sr. Loan Officer (and VA specialist)