Termite Inspections Cannot Be Waived for VA Loans
With today’s real estate market being as hot as it is, it is easy to understand why buyers are looking for an edge in having their purchase contracts accepted by sellers, who may be fielding multiple offers. But there is one thing you cannot do says Joe Delgado, Senior Mortgage Banker with Atlantic Bay Mortgage Company.
“We are seeing a rash of Veterans loans that have waived the termite inspection,” explains Delgado, whose company is one of several business partners of Williamsburg Realty, “but a termite inspection cannot be waived when you are asking for a VA loan in Virginia.”
A termite inspection is required for all structures given value with the exception of condos on the second floor and Veterans Interest Rate Reduction Loans. All property must be inspected regardless of location if an appraiser indicates damage or infestation issues.
“This is a product of what is going on in the market.” he adds, “I have had loans held up because termite work needed to be done and an inspection wasn’t performed.”
Delgado further states that everyone needs to “pay close attention to Government Loan (FHA, VA and USDA) requirements that are more strict than conventional loan products” when dealing with offers to purchase. He also adds that “if there is ever any question, contact your loan officer.”