This Article Is About Pest Inspection On VA Loans Mortgage Guidelines By State
Pest Inspection On VA Loans Mortgage Guidelines By State required by the Veterans Administration:
Gustan Cho Associates are experts in VA mortgage financing. We offer all our VA loan programs without LENDER OVERLAYS. In this blog, we will detail a critical part of the VA mortgage process, a termite/pest inspection. This is a VA requirement on most VA mortgages. In this blog, we will also detail the process and explain how to apply for a VA mortgage loan.
Pest Inspection On VA Loans: Termite And Pest Inspection Defined
What is a termite/passed inspection?
It is exactly what it sounds like, during the VA mortgage process, a termite inspection will be completed. This is to ensure a veteran is buying a sound home that will not have issues due to wood-destroying insects/ termites. It is common for this part of the process to be called a few different things. Some lenders may refer to this as a pest inspection, termite inspection, or a destroying insect report, but they all mean the same thing.
This is an expense that cannot be paid for by the veteran. On a purchase transaction, this is something that the seller pays for. If this is a refinance transaction, the veteran will pay for the termite report and send the invoice to the lender. The lender will credit back the entire cost of the report. Speak With Our Loan Officer for VA Loans
Once again, this fee cannot be paid for by the veteran.
What Will Make a House Fail VA Inspection?
A house may only succeed a VA inspection if it meets the VA’s Minimum Property Requirements (MPRs), which ensure the property is safe, sound, and sanitary for the veteran borrower. Key reasons for failure include structural issues such as significant foundation problems, major roof damage, or water intrusion.
Safety hazards like exposed wiring, outdated electrical systems, and lead-based paint, particularly in homes built before 1978, can also lead to failure. Additionally, inadequate water supply, faulty sewage disposal systems, and poor heating and ventilation systems are common issues that may cause a house to fail the inspection.
Pest Inspection On VA Loans is another critical aspect, particularly in areas prone to wood-destroying insects, fungus, or dry rot. Suppose the VA appraisal indicates evidence of such infestations or conditions conducive to them. In that case, a pest inspection will be required, and any noted damage must be repaired. Environmental and location issues, such as properties in flood zones without adequate flood insurance, can also cause a house to fail.
These stringent criteria ensure that VA Home Loans are used to purchase safe, habitable properties and are unlikely to pose health risks to veterans and their families. Speak With Our Loan Officer for VA Loans
Does VA Require a WDO?
The VA requires a Pest Inspection on VA Loans under certain conditions in 2024. Specifically, this inspection is mandatory if the property is located where termites or other wood-destroying insects are prevalent. A pest inspection will be required if the VA appraisal indicates evidence of wood-destroying insect damage or conditions conducive to infestation.
Regional VA Home Loans offices may have specific mandates based on local conditions. For example, properties in states such as Texas, Oklahoma, Arkansas, and Louisiana typically require a pest inspection due to higher risks of infestation in these areas.
Refer to the VA Lender’s Handbook for comprehensive information on VA property requirements.
Federal Versus State Mortgage Agency Regulations On VA Home Loans
The requirement for a pest inspection does vary per state.
This can be confusing for many out-of-state lenders. It is important to select a lender and loan officer who knows specific VA guidelines and differences with state requirements. A wood-destroying insect report is required for all properties in Texas, Oklahoma, Utah, Hawaii, Arkansas, Nebraska, and Louisiana. On every single VA purchase or refinance. There is no way around this.
Other areas such as Puerto Rico will require a wood destroying insect report if any area of the home is constructed with non-pressure treated wood.
Pest Inspection On VA Loans Depends On Geography
Other states such as Colorado do not require a wood-destroying insect report unless the appraisal
indicates wood destroying insect infestation or condition conducive to a previous infestation. Michigan, New Hampshire, New York, Vermont, and Wisconsin require a wood-destroying insect report for the majority of their counties, but not required in all areas.
For a complete list please see this VA STATE REQUIREMENT link
About VA Home Mortgages And Pest Inspection On VA Loans
A few basics about VA lending:
Applying for a VA mortgage is not difficult. Many veterans do not think they qualify for a VA mortgage loan when in fact they do. There is no minimum credit score requirement for a VA mortgage loan. A VA underwriter is more concerned with your payment history than your credit score.
Of course, the higher the credit score, the lower your interest rate will be. Payment history is critical when applying for a VA mortgage loan. If you have zero missed payments in the past 12 months and no non-medical collections in the past 12 months, chances are you can qualify for a VA mortgage loan. As you know, A VA mortgage does not require a down payment. You will still want to show assets for the down payment and reserve requirements.
However, you can have the seller pay your closing costs up to 4% of the purchase price. This is a common practice for many veterans.
Starting The VA Home Mortgage Application Process
The application process:
The application process has become incredibly simple with advancements in technology. First, you will call Mike Gracz on (800) 900-8569. You and Mike will have a consultation about your qualifications. Assuming there are no obstacles, Mike will pair you with a licensed loan officer in your state. You will then complete an online application that will give your loan officer permission to pull your credit and start your file. Click here to start process your VA Home mortgage application
Documents Required To Start The VA Home Mortgage Process
You will want to send or upload the following documentation:
- Last 60 Days Bank Statements – to source money for closing costs
- Last 30 Days Pay Stubs
- Last Two Years W2’S
- Last Two Years Tax Returns – not always needed
- Driver’s License or State ID
- Certificate of Eligibility from VA
Once your loan officer has your credit profile and required documentation, a preapproval letter will be issued to you. It is important not to stretch your budget. Just because your debt to income may qualify you to a certain payment, it is important to keep your housing payment affordable. It is critical to discuss your monthly budget with your loan officer and create a comfortable housing budget.
FAQs: Pest Inspection On VA Loans Mortgage Guidelines By State
- 1. What is a Pest Inspection on VA Loans? A Pest Inspection on VA Loans is mandatory for most VA mortgages to ensure the property is free from wood-destroying insects, such as termites. This inspection is essential for confirming that the home is structurally sound and will not have issues due to pest damage. It is also called a termite inspection or a destroying insect report.
- 2. Who pays for the Pest Inspection on VA Loans? The veteran cannot pay for the pest inspection. For purchase transactions, the seller typically covers this expense. In the case of refinance transactions, the veteran will initially pay for the pest inspection report and then submit the invoice to the lender, who will credit the cost back to the veteran.
- 3. What are the common reasons a house might fail a VA inspection? A house might only succeed in a VA inspection if it meets the VA’s Minimum Property Requirements (MPRs). Common reasons include structural issues such as foundation problems or roof damage, safety hazards like exposed wiring or lead-based paint, inadequate water supply or sewage systems, and poor heating and ventilation. Additionally, evidence of wood-destroying insect damage will necessitate repairs and a pest inspection.
- 4. Are there state-specific requirements for Pest Inspections on VA Loans? Yes, the requirement for pest inspections varies by state. States like Texas, Oklahoma, Arkansas, and Louisiana require a wood-destroying insect report for all VA loans. Other states, such as Colorado, only require it if the VA appraisal indicates an infestation. Working with a lender familiar with VA guidelines and state-specific requirements is crucial.
- 5. How do I start the VA Home Loan application process? Contact a VA-approved lender to start the VA Home Loan application process. You must provide documentation such as bank statements, pay stubs, W-2s, tax returns, a driver’s license or state ID, and a Certificate of Eligibility from the VA. The lender will pull your credit, evaluate your qualifications, and issue a pre-approval letter if you meet the criteria.
- 6. What are the basics of VA Home Loans? VA Home Loans do not require a minimum credit score or a down payment, making them accessible to many veterans. Payment history is crucial, with a preference for no missed payments and no non-medical collections in the past 12 months. The seller can also cover up to 4% of the purchase price in closing costs. VA loans offer competitive interest rates and manual underwriting, making them an excellent option for eligible veterans.
As you can tell from this article, we are experts in VA mortgage financing. We offer competitive interest rates, manual underwriting, and no overlays on all our VA mortgage products. This sets us apart from the competition. If you are not getting direct answers from your current loan company or have been turned down for qualifications, we encourage you to call us today.
Once again, contact us at Gustan Cho Associates at (800) 900-8569 or you can send an email to gcho@gustancho.com. We are available seven days a week to help you and your family with any mortgage questions. We look forward to hearing from you in the near future. Speak with Our Loan Officer for your mortgage even in holidays or weekend
This blog about Pest Inspection On VA Loans Mortgage Guidelines By State was updated on June 18th, 2024.
