Appraisals and VA Compliance Inspections

  • The veteran MUST pay the fee of a VA appraiser and VA compliance inspectors.
  • The veteran can also may have to  pay for a second appraisal if he or she is requesting reconsideration of value.

The veteran cannot pay for appraisals requested by parties other than the veteran or an approved VA Loan Lender

When a home gets appraised for a VA mortgage, the appraiser is required to report any evidence of termite or wood-destroying pest infestation. If there is sufficient evidence to warrant a further inspection by a qualified expert or service provider, the appraiser may require it. It may be required anyway, depending on the nature of the property and whether it’s located in a heavy infestation zone.

Some parts of the country are considered low-risk termite zones. One map from the VA official website shows regions in the upper midwest as being ‘Slight to Moderate” risk, while areas like Florida, California, parts of Texas and many Gulf states begin “Very Heavy” risk areas for termites.

Borrowers should know that when a pest inspection is required as part of the VA Appraiser’s Notice of Value for new purchase home loans, it cannot be paid for by the borrower. But in cases of certain types of VA refinancing, the borrower does pay the fee. It’s best to consult with the Department of Veterans Affairs if you aren’t sure when a termite inspection fee might apply to you.

How much do termite inspection fees cost? Like VA appraisal fees, these will vary from state to state, and sometimes zip code to zip code. It all depends on the market where the home is located, and other factors including current pricing and the amount of time it takes to render the service.

Different states have different VA requirements for termite inspections. Those rules may depend in part of the requirements of the VA Regional Loan Center officer with jurisdiction. For example, the Phoenix VA Regional Loan Center, which governs states including California, Nevada, and Arizona, has this to say about termite inspections for existing construction homes in those states:

“A clear pest inspection is required for all homes previously owner-occupied or fully complete for one year or more, especially if the appraiser notes past or potential infestation problems.

♦  While VA does not require a cleared termite report on a VA Interest Rate Reduction Refinancing Loan (IRRRL), the underwriter may impose the condition at their discretion.

♦  Purchases and other refinances must have a COMPLETE report that is not over 90 days old at time of closing. (All structures within the legal boundaries of the property must be inspected including garages. Exceptions are minor detached structures such as a small shed, where no value was allowed by the appraiser).

♦  Form NPMA-33, Wood Destroying Insect Inspection Report, will be valid for 90 days from the date of the inspection and is required to be completed, and included, on all existing cases where termite inspections are required.

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