VA loans: required in most states
The VA sets termite inspection requirements state by state, and in high termite-pressure states (Texas, California, and most of the South and both coasts) a wood destroying insect inspection is required before closing. The report generally must show no active infestation and no untreated damage; where findings exist, the corrective work has to be done and cleared before the loan funds. That is the same discipline California calls a Section 1 clearance, and it is why the termite report often decides the closing date.
The payment rule changed in 2022. Before June 15, 2022, the veteran could not be charged for the inspection, so the seller, agent, or lender covered it, and in hot markets that became a sticking point. VA Circular 26-22-11 now allows the veteran to pay. Any party can cover the fee; the prohibition is gone.
FHA loans: required when triggered
FHA does not require a termite inspection on every file. One is required when the appraiser notes evidence of infestation or damage, when the purchase contract calls for an inspection, or when the lender or local jurisdiction requires it. In heavy termite regions, many FHA transactions include one regardless, because no underwriter wants to discover the problem after funding.
Which form the file needs
In most states, the NPMA-33, the nationwide Wood Destroying Insect Inspection Report. Texas transactions use the state's own official form, the SPCS/T-5, and California uses the WDO inspection report. Lenders in those states accept the state form. The safe move on any government-backed file: confirm with the lender which form they want before the inspection, not after.
The 90-day rule is lender policy, not law
Most state laws put no expiration date on the report itself. Lenders, including VA and FHA lenders, typically require the report to be dated within 90 days of closing. When escrow runs long, the report ages out and a re-inspection gets ordered. For inspection companies this is a quiet source of repeat work; for everyone else it is a reason to not order the inspection months early.
What this means for inspection companies
Loan-driven inspections are deadline work. The report is ordered late, needed fast, read by an underwriter, and any error bounces the file back. The companies that win this business are the ones that deliver a clean, complete report the same day as the inspection, because in a VA transaction the report is not paperwork, it is the closing schedule.
Same-day, lender-ready reports by voice
Serv AI turns the inspector's dictation into the completed report for the form your state uses, diagram included, ready to send to the requesting party before the truck leaves the neighborhood. Fewer aged-out reports, fewer re-inspections, faster closings.
Related guides: the NPMA-33 form, Section 1 vs. Section 2, or browse all guides.