VA Loan Termite Inspection Requirements: NPMA-33, Repairs, and Clearance

A VA loan requires a wood-destroying insect inspection when the property sits in a termite infestation zone the VA classifies as “very heavy” or “moderate to heavy,” or when the VA appraiser sees signs of pests or pest damage during the appraisal. That is the core of the VA loan termite inspection requirements. Since June 15, 2022, the veteran is allowed to pay for the inspection and for any pest-related repairs needed to meet VA Minimum Property Requirements, though negotiating those costs to the seller is still fair game.¹

When an Inspection Is Required

The VA relies on Termite Infestation Probability (TIP) zones originally mapped by HUD. If the property sits in a “very heavy” or “moderate to heavy” zone, the appraiser’s Notice of Value will condition the loan on a satisfactory WDI inspection report before the VA will guarantee it.¹ You can look up any property’s TIP zone on HUD’s state-by-state map.²

A lower-probability zone doesn’t automatically require an inspection, but the appraiser can still condition the Notice of Value for a WDI report if they spot active pests or structural damage during their visit. Several states fall entirely outside the mandatory inspection zones: Alaska, Colorado, Idaho, Maine, Minnesota, Montana, North Dakota, Oregon, South Dakota, Wisconsin, and Wyoming. Even in those states, an appraiser who sees evidence of a problem can trigger the requirement. The VA maintains a state-by-state list of local WDI inspection rules, and states not on the list have no default requirement.³

Who Pays for the Inspection

Before June 2022, the WDI inspection fee was classified as a “non-allowable” cost for veterans in most of the country, which pushed the bill onto the seller or listing agent and often made VA offers less attractive in competitive markets. VA Circular 26-22-11, effective June 15, 2022, removed that prohibition nationwide. Veterans are now permitted to pay the inspection fee wherever an inspection is required by the Notice of Value.¹ The circular has no expiration date and remains in effect until the VA rescinds it.

Being allowed to pay is not the same as being required to pay. If the seller, lender, or another party covers the cost, that’s fine. Inspection fees for a standard single-family home generally run between $50 and $150, though larger properties or homes with extensive crawlspaces can cost more.

Who Pays for Pest-Related Repairs

The same circular lets veterans pay for repairs needed to bring a property into compliance with VA Minimum Property Requirements related to pest damage. The VA explicitly encourages veterans to negotiate these costs with the seller rather than absorb them.¹

If the veteran does pay, the lender needs an itemized invoice that identifies the veteran and the property. That invoice is matched against the Closing Disclosure and stays in the loan file in case the VA selects the loan for a Full File Loan Review.¹

Professional termite treatment typically costs between $250 and $3,500 depending on severity and method. Structural repairs for wood-destroying insect damage can run from $3,000 to well over $15,000, though numbers vary widely based on the extent of the damage, the region, and the treatment used. VA rules cap seller concessions at 4% of the sale price, but that cap covers items like the buyer’s closing costs and prepaid items. Normal selling costs, such as paying for required pest repairs, don’t count toward it. That distinction matters when structuring the offer.

What the Property Has to Pass

For pest issues, VA Minimum Property Requirements come down to two things: no active infestation, and no unrepaired damage from a prior infestation that compromises structural integrity.¹ The inspector looks for live termites, carpenter ants, powder-post beetles, and other wood-destroying organisms, and also flags conditions that invite infestation, such as wood framing in direct contact with soil, standing water in crawlspaces, and excessive foundation moisture.

An active colony has to be treated and eliminated before the loan can close. Structural members weakened by past or present pest activity must be repaired to local building code. Evidence of a prior treatment is not disqualifying on its own: if the inspector confirms no current activity and sound framing, the home can pass. The underwriter makes the final MPR call based on the report.

The NPMA-33 Report

Every VA-required WDI inspection has to be documented on Form NPMA-33, the standardized Wood Destroying Insect Inspection Report developed by the National Pest Management Association and mandated by HUD.⁴ The form captures the property address, areas inspected, any evidence of live or dead insects, visible damage, and details of any previous treatments. The inspection has to be done by a pest control professional licensed in your state.

One of the most consequential parts of the form is the list of areas the inspector could not access. The NPMA-33 defines inaccessible areas as spaces where the opening is too small for physical entry, where a ladder was needed but not available, or where crawlspace clearance is less than 24 inches from the bottom of the floor joists to the ground.⁵ The form also carries a disclaimer that infestation or damage may exist in concealed areas beyond what the inspection revealed.

If a critical area like a crawlspace or attic is marked inaccessible, the underwriter may require the obstruction be removed and the area re-inspected before clearing the loan. A follow-up inspection often carries an extra fee.⁵ Before the inspector arrives, clear crawlspace entries, attic hatches, and basement access panels. Stored boxes, insulation covering access panels, and debris around crawlspace openings are the usual culprits.

New Construction and Condos

New construction uses different paperwork. Instead of the NPMA-33, the builder submits Form HUD-NPMA-99-A (Subterranean Termite Protection Builder’s Guarantee) along with Form HUD-NPMA-99-B (New Construction Subterranean Termite Service Record) whenever the builder uses any termite prevention method other than pressure-treated lumber.⁶ Pressure-treated sills alone do not satisfy the requirement.

Condominiums follow the same TIP zone logic as single-family homes. A WDI inspection can be required for both low-rise and high-rise units when the appraiser observes potential pest problems, regardless of what floor the unit is on. The inspection may need to cover common areas and the building’s foundation, which usually requires coordination with the condo association.

When Repairs Can’t Finish Before Closing

Some pest-related repairs genuinely can’t be done before closing. The VA allows an escrow holdback using VA Form 26-1849: the seller deposits enough money into escrow to cover the postponed work, the veteran can take occupancy, and repairs are completed afterward. The arrangement requires approval from a VA Loan Guaranty Officer, and funds are released to the seller on a progress basis as work is completed and confirmed.⁷ If the seller misses the deadline, the lender can hire a third party to finish using the escrowed funds, and the seller remains personally liable to the veteran for satisfactory completion. Most lenders prefer repairs be finished before closing when possible.

Getting to Final Clearance

Once the completed NPMA-33 reaches the lender, the underwriter reviews it against MPRs. A clean report with no active infestation and no unrepaired damage clears the pest condition. Reports are generally treated as valid for 90 days from the inspection date, so a delayed closing usually means paying for a new inspection.

Where an infestation was found and treated, the lender needs a clearance letter from the pest control company confirming remediation was successful and no active organisms remain. Structural repairs triggered by the infestation need documentation showing the work was completed to code. Final loan clearance won’t be issued until every pest-related condition on the Notice of Value is satisfied. The most common reason for last-minute delays is paperwork: a missing clearance letter, critical areas marked inaccessible on the NPMA-33, or repair invoices that don’t reconcile with the Closing Disclosure.

1
U.S. Department of Veterans Affairs. VA Circular 26-22-11
2
U.S. Department of Housing and Urban Development. Pest Control TIP Zones
3
U.S. Department of Veterans Affairs. Local Requirements – VA Home Loans
4
National Pest Management Association. NPMA Forms Information
5
U.S. Department of Housing and Urban Development. Wood Destroying Insect Inspection Report (NPMA-33)
6
U.S. Department of Housing and Urban Development. Subterranean Termite Protection Builder’s Guarantee (Form HUD-NPMA-99-A)
7
Department of Veterans Affairs. Escrow Agreement for Postponed Exterior Onsite Improvements (VA Form 26-1849)