A WDO inspection report is a licensed pest inspector’s written findings on whether a property shows active infestation or damage from wood-destroying organisms, including termites, carpenter ants, wood-boring beetles, and in many states wood-decay fungi. Lenders on FHA- and VA-backed loans frequently require the report before funding, and buyers on conventional deals use it to negotiate repairs or price. It documents current activity, past evidence, areas the inspector couldn’t reach, and any recommended treatment, so every party at the closing table is working from the same picture of the property.
What the Inspector Is Looking For
The organisms covered depend on which form governs the inspection. The federal NPMA-33 form focuses on wood-destroying insects. Several state forms go broader and also include wood-decay fungi.
Termites
Subterranean termites are the most common finding. They build mud tubes along foundations and piers to stay moist while they travel between soil and wood, and those tubes are often the first visible sign. Drywood termites, more common in warmer coastal areas, live inside the wood itself and leave small fecal pellets near kick-out holes. Either species can hollow out floor joists, sill plates, and beams well before the damage shows from the outside.
Carpenter Ants and Powderpost Beetles
Carpenter ants don’t eat wood; they excavate smooth galleries inside it and push out sawdust-like frass. Inspectors look for frass piles, hollow-sounding wood, and swarmers indoors. Powderpost beetles are quieter: their larvae tunnel inside lumber for years, and the first sign is usually a fine, flour-like powder below the wood and small round exit holes.
Wood-Decay Fungi
Many state forms also cover wood-decay fungi, commonly called dry rot. It spreads where moisture collects: poorly ventilated crawlspaces, areas around leaking pipes, and places where roof drainage runs against the structure. Inspectors probe suspected spots to check whether the wood has lost density.
When the Report Is Required
Whether you need one depends on the loan type, where the property sits, and what the appraiser notices.
FHA Loans
FHA doesn’t require a termite inspection on every transaction. Under HUD’s guidelines, an inspection is triggered when the appraiser sees evidence of infestation or decay, when state or local law mandates it, when it’s customary in the area, or at the lender’s discretion. When one is required, HUD calls for the NPMA-33 form unless the property is in a state with its own mandated form. Those states include Alabama, Arizona, California, Florida, Georgia, Hawaii, Louisiana, Maryland, Mississippi, Nevada, North Carolina, Oklahoma, South Carolina, and Texas.1U.S. Department of Housing and Urban Development. HOC Reference Guide – Pest Control
VA Loans
VA requirements are tied to geography. More than 30 states and territories require a wood-destroying insect inspection on every VA-financed purchase, including the entire Southeast, most of the Mid-Atlantic, and all the Gulf Coast states. Several others, including Colorado, Iowa, Nebraska, New York, Pennsylvania, Utah, and Wisconsin, require inspections only in specific high-risk counties.2U.S. Department of Veterans Affairs. VA Home Loans – Local Requirements If your state isn’t listed, the VA appraiser has to flag a specific concern for an inspection to be required.
Conventional Loans
There is no uniform conventional requirement. Some lenders insist on a report in high-pressure termite regions; others leave it to the buyer. Even where no one requires it, ordering one during due diligence is inexpensive protection against discovering a five-figure structural problem after closing.
Cost and Who Pays
A standard WDO inspection runs roughly $150 to $300 depending on property size and location. Some pest control companies offer free basic termite inspections hoping to sell a treatment contract afterward.
Payment responsibility is negotiable in most deals. On VA loans, the VA allows veterans to pay for the inspection and any required repairs but encourages buyers to negotiate those costs with the seller.3U.S. Department of Veterans Affairs. Veterans Benefits Administration Circular 26-22-11 In practice, local custom and the terms of the purchase contract usually decide it.
What’s in the Report
The NPMA-33 is a standardized one-page form approved for FHA and VA loans and widely used on conventional deals as well.4U.S. Department of Housing and Urban Development. Form NPMA-33 – Wood Destroying Insect Inspection Report It has five sections:
- Section I, General Information: the inspection company, inspector’s license number, date, property address, and structures inspected.
- Section II, Inspection Findings: whether no visible evidence was observed or evidence was found, with descriptions and locations of live insects, dead insects or shelter tubes, and visible damage.
- Section III, Recommendations: whether treatment is recommended and, if so, what kind and for which organism.
- Section IV, Obstructions and Inaccessible Areas: every area the inspector couldn’t fully examine, using a standardized key covering obstructions like insulation, floor coverings, stored items, dense vegetation, and standing water.
- Section V, Additional Comments: notes, diagrams, and signatures.
Section IV deserves a careful look if you’re buying. A long list of inaccessible areas isn’t laziness; the inspector is documenting what they couldn’t see. If prime hiding spots are blocked (a crawlspace stuffed with insulation, a garage wall behind built-in shelving) it may be worth asking the seller to clear those areas for a follow-up look.
State forms used instead of the NPMA-33 typically cover more ground, including wood-decay fungi, and often split findings into active infestation versus conditions likely to lead to future problems.1U.S. Department of Housing and Urban Development. HOC Reference Guide – Pest Control The practical output is the same: current activity, past evidence, and recommended action.
How Long the Report Is Good For
WDO reports are generally valid for 90 days from the inspection date. Lenders typically require a new one after that because pest conditions change quickly, especially in warmer months when termites swarm. If closing slips past the 90-day mark, budget for a second inspection. Some lenders impose shorter windows, so confirm your lender’s specific rule early rather than assuming the standard applies.
If the Inspection Finds Problems
Active findings don’t automatically kill a deal, but they add steps and costs. A localized spot treatment for a contained termite or carpenter ant colony can run a few hundred dollars. Full-house fumigation for widespread drywood termites is a bigger project, often several thousand dollars once you factor in tenting, vacating the home, and post-treatment airing. The purchase contract usually dictates who pays, and this is one of the most negotiated line items when pest issues surface.
Lenders on government-backed loans want written confirmation from the pest control company that the treatment was completed, and many require a re-inspection to verify the property is clear. For FHA-insured properties, all structures within the property lines must be free of active infestation before the pest condition is cleared.1U.S. Department of Housing and Urban Development. HOC Reference Guide – Pest Control On state forms that separate active infestation from conditions likely to cause future problems, active infestation must be treated before closing; conditions like excessive moisture or wood-to-soil contact may be handled as part of a repair agreement.
Preparing for the Visit
The inspector needs unobstructed access everywhere wood-destroying organisms hide. Clear stored items away from crawlspace entrances, attic hatches, and garage walls. Move boxes, furniture, and appliances blocking the base of interior walls, especially in basements and utility rooms. Anything the inspector can’t reach is flagged as inaccessible rather than cleared, which can raise a flag with the lender.
Give the inspector the full legal address and specify every structure covered by the sale: the main house, detached garages, sheds, wooden fences, and any outbuildings. Mention recent renovations that enclosed previously open framing, and any past infestations or treatments. That history helps the inspector focus on high-risk zones.
Confirm the inspector holds a valid pest control license in your state. Nearly every state licenses WDO inspectors through a structural pest control board or equivalent body, and a report from an unlicensed inspector may not satisfy your lender, forcing a second inspection and a delayed closing.
Existing Termite Bonds
If the property already has an active termite treatment contract, sometimes called a termite bond, it can often be transferred to the new owner. Transferability varies by company and contract, so request a copy of the existing agreement during due diligence. A transferable bond can save you the cost of a fresh treatment contract and typically includes annual re-inspections and retreatment if termites return. The bond covers only that specific property and cannot follow an owner to a different address. Some companies charge a transfer fee or require a clearance inspection before continuing coverage under the new owner.