Greetings to all our readers! If you are a military veteran or currently serving in the military, you may have heard about the termite inspection VA loan. In this article, we will dive deep into everything you need to know about VA loans and termite inspections.
What is a VA Loan?
A VA loan is a mortgage loan that is guaranteed by the United States Department of Veterans Affairs (VA). This loan helps veterans, active-duty service members, and eligible surviving spouses to buy, build, or improve homes for their primary residence.
VA loans offer several advantages over traditional mortgages, including:
|Advantages of VA Loans
|No down payment required
|No private mortgage insurance (PMI) required
|Limited closing costs
|Flexible credit requirements
What is a Termite Inspection?
A termite inspection is an examination of a home or other building to determine if there is a termite infestation or damage caused by termites. Termites can cause significant damage to the structure of a building and can be very costly to repair. Therefore, it is essential to have a termite inspection before purchasing a home or building.
Why is a Termite Inspection Required for VA Loans?
Termite inspections are required for VA loans to ensure that the property being purchased is free of termite infestations and termite damage. Since VA loans are government-backed, the government wants to ensure that the properties being purchased are in good condition and free of pests that could cause significant damage.
When is a Termite Inspection Required for VA Loans?
A termite inspection is required for VA loans in the following situations:
1. Purchase Transactions
A termite inspection is required for all VA purchase transactions, regardless of the age of the property or the location of the property.
2. Refinance Transactions
A termite inspection is not required for VA refinance transactions, except in the following situations:
a. Cash-Out Refinancing Loans
A termite inspection is required for all VA cash-out refinance transactions. This is because the cash-out refinance loan is treated as a purchase loan, and the property must be inspected for termites and termite damage.
b. Interest Rate Reduction Refinancing Loans (IRRRLs)
A termite inspection is not required for IRRRLs, except in the following situation:
If there is evidence of termite infestation or termite damage, a termite inspection is required to determine the extent of the damage and to ensure that the property is free from termites before the refinance transaction.
What Does a Termite Inspection Include?
A termite inspection includes a thorough examination of the property for evidence of termite infestation or termite damage. The inspector will check both the interior and exterior of the property and will look for signs such as:
|Signs of Termite Infestation or Damage
|Mud tubes on exterior walls
If the inspector finds evidence of termite infestation or termite damage, they will provide a detailed report outlining the extent of the damage and any recommended treatments.
How Much Does a Termite Inspection Cost?
The cost of a termite inspection can vary depending on several factors, such as the location of the property and the size of the property. However, the cost of a termite inspection is typically between $75 and $150.
1. Will a termite inspection delay my VA loan closing?
No, a termite inspection does not typically add any significant delays to the VA loan closing process. However, it is essential to schedule the termite inspection as soon as possible to avoid any potential delays.
2. Is a termite inspection required for every VA loan?
No, a termite inspection is not required for every VA loan. It is only required for purchase transactions and certain types of refinance transactions, such as cash-out refinancing loans.
3. Can I choose my own termite inspector?
Yes, you can choose your own termite inspector for VA loans. However, the inspector must be licensed and certified in your state.
4. What happens if termite damage is found during the inspection?
If termite damage is found during the inspection, the inspector will provide a detailed report outlining the extent of the damage and any recommended treatments. The seller may be required to provide treatment for the termites and repair any damage before the loan can be approved.
5. Can I waive the termite inspection for my VA loan?
No, you cannot waive the termite inspection for VA loans. It is a requirement set by the VA to ensure that the property being purchased is in good condition and free from termites.
6. How long does a termite inspection take?
A termite inspection typically takes between 30 minutes to an hour, depending on the size of the property and the extent of the inspection.
7. Can I have a termite inspection done before I make an offer on a property?
Yes, you can have a termite inspection done before making an offer on a property. This is called a pre-purchase termite inspection, and it can help you determine if there are any issues with the property before you make an offer.
8. What if I disagree with the termite inspection report?
If you disagree with the termite inspection report, you can request a second opinion from another licensed termite inspector. However, the VA will typically require that the issue is resolved before approving the loan.
9. Do I need to be present during the termite inspection?
No, you do not need to be present during the termite inspection. However, it is recommended to be present to ask any questions and to see any evidence of termite infestation or damage.
10. Can I use the same termite inspection report for multiple offers?
No, you cannot use the same termite inspection report for multiple offers. The report is specific to the property being inspected, and a new report must be obtained for each property.
11. Can I request a termite inspection after closing?
Yes, you can request a termite inspection after closing. However, any issues found will not be covered by the VA loan and will be the responsibility of the homeowner.
12. Who pays for the termite inspection?
The buyer typically pays for the termite inspection for VA loans. However, the seller may agree to pay for it as part of the negotiations.
13. Can I use a termite warranty in place of a termite inspection?
No, a termite warranty cannot be used in place of a termite inspection for VA loans. However, having a termite warranty in place can provide additional protection against future termite infestations.
In conclusion, a termite inspection is a necessary requirement for VA loans to ensure that the property being purchased is free from termite infestations and damage. While it may add some additional time and cost to the home buying process, it is essential to protect your investment and avoid costly repairs in the future. We encourage all our readers to take this requirement seriously and invest in a thorough termite inspection before purchasing a property.
Thank you for reading, and we wish you all the best in your home buying journey!
The content provided in this article is for informational purposes only and should not be considered as legal or financial advice. Please consult with a licensed professional for any legal or financial advice related to VA loans and termite inspections. The author and publisher shall not be held liable for any damages or losses resulting from the use of this information.