VA appraisals

VA Loan Rules For Termite Inspections: Condominiums

September 4, 2018

VA Loan Rules For Termite Inspections: Condominiums


In a recent blog post, we addressed some of the VA loan rules for termite inspections. But did you know that there may be different requirements in this area, depending on the type of property you buy with a VA guaranteed home loan?

VA termite requirements for homes purchased with VA loans may vary depending on what state you live in, but the rules are also sometimes different for those purchasing condo units. For example, let’s examine the VA loan termite inspection standards as published by the Phoenix Regional Loan Center, which has jurisdiction over several states including California, Nevada, and Arizona.

“Condominium first floor units are subject to the same inspection requirements as stated in the section titled “existing construction”; (the inspection is to include ground floor attached and or detached garage, shed, and other structures that are a part of the subject.)”

“If the unit is on the second floor or above, then a wood destroying pest inspection is not automatically required. However, if the appraiser detects evidence of possible dry rot or infestation by some wood-destroying organism, the appraiser must call for the inspection report.”

In this case, how can the VA loan applicant get a termite inspection waived for a second-story or higher condo unit?

“In order to waive the repair requirements on a condominium, a letter from the homeowners association listing the date of scheduled repairs, name of the contractor awarded the work, and acknowledgment that the funds necessary to pay for those repairs has already been budgeted and/or collected should be attached to the home buyer summary with a copy included with the request for VA guaranty.”

It’s important to note that the above rules are issued specifically for the properties for sale in the area under the Phoenix RLC’s jurisdiction–this is not a blanket rule that covers all homes in all areas. Instead, it’s a good example of how the rules can vary from region to region. It’s best to contact the lender or the VA to get guidance on VA loan termite rules and how they might affect your purchase depending on the location.

Do you have questions about VA home loans? Ask us in the comments section.

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