If you are using a VA (Veteran Affairs) loan to purchase a property or refinance an existing mortgage, the VA may require that the property have a termite inspection for the mortgage process. Any property purchased with a VA (Veterans Affairs) loan must meet the VA’s minimum property requirements.
In this regard, can a veteran pay for termite repairs on a VA loan?
While paying for the inspection is off the table in most states, VA buyers everywhere may be able to pay for termite treatment. Some lenders, including Veterans United, allow buyers to cover repairs in some cases, even with issues noted on the Notice of Value.
Additionally, do conventional loans require termite inspection?
Do conventional mortgages require a termite inspection? Conventional loans are mortgages offered by lenders without a government guarantee. These lenders may make a termite inspection a condition of approving your loan because termite damage can reduce the value of the home and affect the amount you can borrow.
Do Home Inspectors check for termites?
No. While most home inspectors are qualified to inspect and identify termite activity, the two inspections are distinctly different and serve different purposes. Also, in every state, the licensing for home inspectors and termite inspectors is different.
One very important thing to remember is that on all VA and FHA loans section two items must be resolved before the funding of the loan. Section two (2) items are as mentioned previously areas that might attract an infestation to any wood structures like it is in the areas where an excessive moisture condition exists.
First of all, termite inspections are not a requirement by VA in all states, but the inspection must take place in states where termites are prevalent. The Southeast U.S. is a prime area for termites plus other wood-destroying pests.
Termite: Section 2
This is when the inspector notes potential damage to an area. If it is not treated or repaired in the near future, it can become a Section 1 item. These areas are considered hotspots and generally refer to where termites can flourish or elements that can cause wood damage.
If the total cost of repairs is $500 or less, the work shouldn’t be completed until an underwriter has conditionally approved the loan. If the total cost of repairs is greater than $500, the work shouldn’t be completed until the lender issues a clear to close on the loan.
During the inspection, they’ll check for any wear and tear or issues that could cause the system to fail shortly after the sale goes through. If they determine that the system isn’t able to heat the house to at least 50 degrees Fahrenheit during the winter without issue, the house will fail the inspection.
VA guidelines state that the termite inspection has to be paid for by “some party other than the veteran.” This could be the lender, realtor, or even the seller if so negotiated.
The lower interest rates on VA loans are deceptive.
Both will end up costing you much more in interest over the life of the loan than their 15-year counterparts. Plus, you’re more likely to get a lower interest rate on a 15-year fixed-rate conventional loan than on a 15-year VA loan.
In some cases, home sellers won’t accept purchase offers backed by VA-guaranteed mortgages for fear of low appraisal value. … Because VA appraisals may increase their repair costs, home sellers sometimes refuse to accept purchase offers backed by the agency’s mortgages.
Many sellers — and their real estate agents — don’t like VA loans because they believe these mortgages make it harder to close or more expensive for the seller. … Are less likely to close than other types of mortgages. Take ages to reach closing. Have appraisers who are slow and routinely undervalue homes.