Who pays for the termite inspection on a VA loan? Does the seller have to pay for a termite inspection on a VA loan?
In what states can a veteran pay for a termite inspection?
How do termite inspection requirements vary by state?
As you can imagine, these are all common questions that we receive, and in today’s video I will discuss the facts that you need to know in order to help our veterans and Realtors understand who can pay for a VA loan termite inspection (wood destroying insect report).
As a starting point, the topic of who can pay for a VA loan termite inspection is often misunderstood because many automatically assume that the seller is responsible for this payment. However, in today’s competitive market, it is important to limit any unnecessary requests from a seller in order to help get VA contracts accepted by those who may be wary of additional costs.
Some sellers and listing agents can be resistant to certain loan programs because they they think it will require them to pay additional fees.
However, remember that sellers will only pay for what they have agreed upon within the sales contract or any applicable addendums.
Further, while the VA program does prohibit the veteran from paying certain charges, this does not mean that the seller automatically has to pay for these items. VA guidelines state that they have to be paid for by “some party other than the veteran” which could be the lender, Realtor, or even the seller if so negotiated.
With that being said, who pays for a VA loan termite inspection in Florida, Texas, or Alabama?
Now, while it is true that states generally prohibit a veteran from paying for a termite inspection, VA has identified certain states where exceptions apply on who pays for the termite inspection on a VA loan. These states include Florida, Alabama, and Texas and a list of other states and exceptions can be found here:
While the list of exceptions does vary from the type of fee and state or territory, please consult with your local VA Regional Loan Center for any further questions.
In summary, remember the following:
- A veteran can pay for a termite inspection in some states,
- There are certain charges that a veteran may not pay, and
- The seller is only required to pay for what has been agreed to within the sales contract or any addendums.
Remember if you have any questions, that is what we are here for!
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With in-house underwriting and upfront systems in place, use my team as a resource so we can review and assist with key items such as:
- VA Certificates of Eligibility,
- Calculating the VA entitlement,
- Reviewing eligible USDA areas and property types,
- Determining USDA income eligibility, and
- USDA or VA Minimum credit qualifying questions
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I want everyone to make it a great day and look forward to seeing you right here for the next Loan Pro video quick tip!