A termite inspection is required when you buy a home if you’re financing with a VA loan in a designated termite-risk area, if an FHA appraiser spots evidence of infestation or local custom calls for it, if your conventional lender asks for one, or if your purchase contract includes a pest inspection contingency. State or local law can also trigger the requirement. Outside those situations nobody can force you to order an inspection, but skipping one on an older home or a property in a warm, humid region is a gamble most buyers shouldn’t take.
VA Loan Rules
VA-backed loans have the clearest mandate. The Department of Veterans Affairs requires a wood-destroying pest inspection report as a minimum property requirement for homes located in areas where the Termite Infestation Probability Map rates the risk as “moderate to heavy” or “very heavy.”1Department of Veterans Affairs. VA Circular 26-22-11 – Pest Inspection Fees and Repair Costs That map covers much of the country. If you’re buying with a VA loan anywhere in the southern half of the United States or along most coastal areas, plan on the inspection being mandatory.
The inspection has to be documented on a standard form, typically the NPMA-33, which is the wood-destroying insect inspection report approved for both VA and FHA transactions.2U.S. Department of Housing and Urban Development. Form NPMA-33 – Wood Destroying Insect Inspection Report A licensed pest control professional must complete it, not a general home inspector, and the inspector has to provide their state-issued license or certification number. If the report shows active infestation or damage, the issues need to be resolved before the VA will approve the loan.
FHA Loan Rules
FHA takes a conditional approach. A termite inspection is required when any of the following apply: the appraiser finds evidence of active infestation, decay, or suspicious damage; state or local law mandates it; it’s customary in the area where the property is located; or the lender decides to require one at its own discretion.3U.S. Department of Housing and Urban Development. HOC Reference Guide – Pest Control The appraiser is specifically required to note on the appraisal form whether they observed any evidence of wood-boring insect infestation.
The “customary to the area” trigger is the one that catches most buyers. It means FHA inspections end up being required across much of the South, Southeast, and other high-risk regions regardless of what the appraiser sees. Lenders in those areas know termite problems are common enough that skipping the inspection creates unacceptable risk. If you’re buying with an FHA loan and your lender hasn’t mentioned a termite inspection, ask directly whether one will be required in your area rather than assuming you’re off the hook.
Conventional Loans
Conventional lenders aren’t bound by the same federal rules as VA and FHA, but many still require a termite inspection, particularly for properties in high-risk zones or older homes. The lender has a financial interest in making sure the collateral for the loan isn’t being quietly eaten from the inside. Don’t be surprised if your conventional lender adds a pest inspection to the closing checklist, and ask early so you can budget for it and schedule in time.
Purchase Contract Contingencies
Even when no lender requires an inspection, the purchase agreement itself often does. Many real estate contracts include a pest inspection contingency that gives the buyer the right to back out of the deal or renegotiate if the inspection reveals significant termite activity or damage. Sellers in competitive markets sometimes order a pre-listing inspection to remove that uncertainty before offers come in.
Who pays for the inspection is negotiable and varies by region. In some markets the seller traditionally pays, while in others the buyer covers it. A standalone termite inspection for a single-family home generally runs between $75 and $325, depending on the size of the property and your local market. Some pest control companies offer free inspections as a way to win treatment contracts, so it pays to call around.
When You Should Order One Anyway
Even if no rule or contract makes you, certain situations call for an inspection. Older homes top the list because decades of wood exposure create more opportunities for colonies to establish themselves undetected. Properties in warm, humid climates face year-round termite pressure, and homes with known histories of past infestations are at elevated risk for recurrence.
Certain physical signs during a walkthrough should push you to schedule an inspection before you make or accept an offer. Mud tubes running along foundation walls are highways that subterranean termites build to travel between soil and wood. Hollow-sounding wood when tapped, buckling floors, and small piles of wood-colored pellets near baseboards all point to active colonies. Discarded wings near windowsills are another red flag, since swarming termites shed their wings after finding a spot to establish a new colony.
One piece of context every buyer should know: standard homeowners insurance does not cover termite damage. Insurers treat pest infestations as a maintenance issue rather than a sudden loss, which means every dollar of damage comes out of your pocket. Minor repairs might cost a few hundred dollars, but structural damage to load-bearing components can run into the tens of thousands.
What the Inspection Actually Covers
A professional termite inspection is almost entirely visual. The inspector walks the accessible areas of the property looking for live termites, damage, and conditions that invite infestation. They tap wood to check for hollow sounds, use a moisture meter to identify damp areas, and examine foundation walls, crawl spaces, basements, attics, and the exterior perimeter for mud tubes, frass, damaged wood, and discarded wings.
The scope is broader than termites. The NPMA-33 report covers all wood-destroying organisms, which includes drywood and subterranean termites, wood-boring beetles like powderpost beetles and old house borers, carpenter ants, carpenter bees, and wood-decaying fungi. Finding any of these doesn’t necessarily kill a deal, but it does mean someone needs to address the problem before closing.
Every inspection has blind spots, and the report lists them. Inspectors can only evaluate areas they can physically see and reach. Walls sealed behind drywall, areas blocked by heavy furniture or stored belongings, locked rooms, and sub-floor spaces without crawl access commonly get flagged as inaccessible. Read that section carefully. A clean report with a long list of areas the inspector couldn’t reach is very different from a clean report with full access. If significant zones were inaccessible, ask the seller to move stored items or open access panels so the inspector can take another look before you close.
Timing and Shelf Life
A WDO report is a snapshot with a limited shelf life. Most lenders require the report to be dated within 90 days of closing, and some insist on 30 days. If your closing gets delayed, you may need a fresh inspection. Keep this in mind when scheduling, especially in busy markets where inspectors book up quickly. Ordering too early can be as much of a problem as ordering too late.
What Happens If the Report Isn’t Clean
A clean report satisfies lender requirements and you move forward with closing. A report showing active termites or damage triggers negotiation. The buyer and seller need to agree on who pays for treatment and any structural repairs. Common arrangements include the seller handling everything before closing, the buyer accepting a price reduction, or the seller crediting the buyer at closing for estimated treatment costs. If the damage is severe enough, either party may walk away.
Once treatment is done, a follow-up inspection confirms the infestation has been eliminated and produces an updated clearance letter stating the property is pest-free. That letter documents what was found initially, what treatment was performed, and the results of the re-inspection. Your lender will want to see it before releasing loan funds.