Since 1984

Termite and Pest Inspection for a VA Loan

Being a veteran comes with many benefits, such as an easier path to home ownership. Veterans often enjoy low to no down payments, more relaxed credit requirements, and lower closing costs. 

If you have served in the military, you may be using a Department of Veteran Affairs (VA) loan to purchase a home or refinance an existing mortgage. Buying a home under this loan comes with certain requirements. In some cases, one of the requirements is getting a termite inspection for the mortgage process.

While the VA mandates a termite inspection in more than 30 states, the requirements are not as strict in other states. Wood-destroying insect (WDI) information is only required in certain states and counties. In the past, only certain counties in Colorado required a termite inspection. Of the 64 counties, 43 required one. 

Updated Requirements

However, it is important to note that it is no longer the case due to a recent update in Colorado. Effective immediately, the VA has removed Colorado’s exemption for WDI inspections.

In early July 2025, it was announced that Colorado is now a mandatory termite inspection state for VA loans. This is true whether or not the appraiser notes termite activity. This requirement applies to all VA-guaranteed loans for homes, townhomes, and condos in Colorado except for certain exempt properties (such as condos with no ground contact). 

So what does this mean? A WDI inspection (NPMA-33) must be completed before the Notice of Value (NOV) can be issued. The NPMA-33 form is a standardized report used to document the presence or absence of wood-destroying insects and any associated damage. This form includes details about the property, the inspector, and the inspection company. It reports on the presence of live or dead insects, insect damage, and visible evidence of infestation. It also lists recommendations for addressing any identified issues. 

Lenders’ Staff Appraisal Reviewers (SARs) cannot generate an NOV without this report. The NOV is an important part of the VA home loan process. It serves to protect veterans by ensuring they don’t overpay for a property. It also ensures that the home meets the VA’s minimum property requirements. If you are buying or selling a home, make sure to check with the local VA loan center to find out which requirements apply to your case.

What Does an Inspection Cover?

This inspection covers wood-destroying insects, and while termites may be the first thing that comes to mind, they’re not the only pests covered. A professional VA pest inspection will include examining the visible, accessible interior and exterior of the home to look for wood damage and to help identify the cause. 

While termites are a common cause of home damage, an inspector may also look for carpenter ants, carpenter bees, old-house borers, and powderpost beetles. The goal of this examination is to identify the insect species present and propose effective treatments. A detailed report from this inspection is valid for 90 days. While it outlines the findings and recommendations, it does not guarantee against future infestations.

What This Means for Buyers and Sellers

Previously, inspections were only required if the appraiser noted concerns. This change means the inspection needs to be arranged upfront, similar to a standard home inspection. This inspection is typically completed before the appraisal. 

While the cost varies, WDI inspections are generally less expensive than a full VA appraisal. Expect to pay $200 to $300, but this can vary based on property size and location. Buyers do not have to be the ones to pay for the inspection

The buyer, seller, or lender can pay for the pest inspection for a VA loan. Previously, the VA home buyer wasn’t allowed to pay for the inspection themselves. However, in June 2022, the VA relaxed its guidelines. Now, veteran home buyers are allowed to pay for pest inspections for both home purchases and refinances. This change means buyers can negotiate with the seller to cover the cost of the inspection and any necessary repairs, which can make their offer more enticing.

Contact Us Today

Termites and other insects can cause a lot of damage to a home. This damage is not always visible, so requiring a WDI inspection can help identify issues and prevent headaches for buyers down the line.
At Mug-a-Bug Pest & Termite Control, you can be assured of a professional inspection, recommendation, and program for preventing termites or dealing with current termite activity. To schedule an inspection today, give us a call at (719) 882-1630 (Pueblo) or (719) 417-5798 (Colorado Springs).