Does a VA Loan Require a Termite Inspection in Houston?

Yes. A VA purchase loan on a Houston home needs a termite inspection, because VA requires wood destroying insect information for the entire state of Texas, per its local requirements page. The report comes from a licensed pest control company, not your general home inspector. Since June 2022 the veteran is allowed to pay for it, and any active termites or damage it finds have to be fixed before the loan closes.

That last part is where deals get tense. So let’s take this one step at a time.

Why Texas Is on VA’s Required List

VA ties the termite rule to how likely termites are in an area. Places where the risk is rated “moderate to heavy” or “very heavy” need a report, and Texas sits in that group as a whole state, not county by county. If you have bought with a VA loan somewhere like Michigan or Oregon, where the report is only needed when the appraiser asks, this one may be new to you.

Houston’s humidity and mild winters are a big part of why. Subterranean termites are common here, and Formosan termites have been found across the Gulf Coast. A clean report on a 2019 build and a clean report on a 1978 ranch house are not the same level of comfort, and the report itself will say what the inspector could and could not see.

Who Pays for It Now

For years, VA treated the termite report as a fee the veteran could not pay in most states, so the seller usually covered it. That changed with VA Circular 26-22-11, issued June 15, 2022. Under it, a veteran may pay for the inspection whenever VA requires one, and may also pay for repairs needed to meet VA’s Minimum Property Requirements. The circular still encourages veterans to negotiate those costs with the seller.

Here is how the money question usually plays out on a Houston VA purchase:

• The inspection fee: negotiable. Asking the seller to cover it is reasonable, and plenty agree.
• Treatment for active termites: has to happen before closing. Who pays is negotiated.
• Repairs to damaged wood: same as treatment, if the damage affects the home meeting VA’s standards.
• The cost shows up on your Closing Disclosure with an itemized invoice behind it, so nothing is buried.

Here is what I would do if this were my house. Ask the seller to pay for the inspection in the offer, and ask early, so the report is in hand during your option period. Our piece on how long a Texas option period should run explains why that window matters.

What the Report Actually Is

In Texas, the report is written on the Texas Department of Agriculture’s official Wood Destroying Insect Report form, by a licensed applicator or technician, under 4 Tex. Admin. Code § 7.175. It covers the visible, accessible parts of the house. It does not open walls. A clean report means no evidence was found where the inspector could look, not that termites are impossible.

This surprises buyers more than it should. The general home inspection and the termite report are two different jobs done by two different licenses. Your home inspector might write “possible wood damage at the back door frame,” and your lender still needs the termite report.

When Termites Show Up

If the report finds active termites, they get treated before closing. If it finds damage, the appraiser and lender decide whether it keeps the home from meeting VA’s Minimum Property Requirements, and repairs get done before the loan funds. Peter spent years in construction and mortgage lending before he started selling homes in 2004, so when a report comes back with damage at a sill plate or a door frame, he can usually tell you whether you are looking at a weekend repair or a bigger conversation.

The standard Texas resale contract treats lender required repairs, which include termite treatment, as something neither side has to pay for unless they agree in writing. If nobody agrees, the contract can end and the earnest money goes back to the buyer. So the termite report is not a reason to walk away from a good house. It is a negotiation, and it goes better when it is handled early.

The Move Live Love TX Team™ works with veterans across Houston and the surrounding areas, and Vicky holds the Military Relocation Professional (MRP) designation. If you are still at the start of the process, our VA Benefits the Smart Way guide walks through the rest of it.

Frequently Asked Questions

Does a VA loan require a termite inspection in Texas?

Yes. VA lists Texas as a state where wood destroying insect information is required statewide, so a VA purchase loan on a Houston home needs a termite inspection report before it can close. A VA Streamline refinance usually does not need one unless the appraiser sees damage.

Who pays for the termite inspection on a VA loan?

Either side can. Since VA Circular 26-22-11 in June 2022, a veteran is allowed to pay for the termite inspection when VA requires it. The seller can also agree to pay, so it is worth asking for in the offer.

What happens if the inspector finds termites on a VA loan?

Active infestation or damage has to be treated and repaired before the loan can close, because the home must meet VA's Minimum Property Requirements. Who pays for that work is negotiated between buyer and seller, and the veteran is allowed to pay for it.

Is the VA termite inspection the same as my home inspection?

No. The termite report is a separate inspection done by a licensed pest control professional on the Texas Department of Agriculture's official form. A general home inspector may note wood damage, but that does not replace the termite report your lender needs.

Do condos need a termite inspection on a VA loan?

Sometimes. Lenders often do not require one for a unit high in a building, but they can, and an appraiser can call for one on any property if they see signs of damage. Ask your lender early so the report is not a surprise late in the deal.