VA Loan Articles
VA Condo Loan Rules: Termite InspectionsThe VA loan program has a variety of rules that protect the borrower--some of these rules involve fair lending practices, while others are concerned with the quality of the property to be purchased with a VA mortgage.
One such rule involves termite inspections. In areas where there is a known, heavy termite infestation problem, a termite inspection could be required as a condition of VA loan approval. But when it comes to VA condo loans, are the same rules enforced?
According to the VA official site, condos may have different requirements based on the location of the condo unit to be purchased and the rules governing the general area.
In general, VA termite requirements for homes purchased with VA loans may vary depending on the state, but the rules are also sometimes different for condo units. Consider 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. According to the VA RLC in Phoenix:
“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.”
Additionally, “...if the appraiser detects evidence of possible dry rot or infestation by some wood-destroying organism, the appraiser must call for the inspection report.”
For those who are affected by this rule, what is the procedure to 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.”
Keep in mind that the rules quoted here have been written specifically for the properties for sale in the area under the Phoenix RLC’s jurisdiction–don’t interpret this as a general rule that covers all homes in all areas. Instead, consider these rules as a prime example of how termite requirements--and indeed many other regulations--can and do vary from region to region.