Property Q&A in 91355>Question Details

Mark Bolender, Real Estate Pro in Valencia, CA

Does the seller have to do section 1 and section 2 termite work for VA buyers?

Asked by Mark Bolender, Valencia, CA Mon May 14, 2012

I have heard that no termite report is needed for VA transactions and I have heard that both section 1 and 12 work has to be done. Does anybody know?

Help the community by answering this question:


Always remember that the VA is governed by HUD. HUD is always going to require a termite inspection report. If not then the loan cannot be accepted for securitization on the secondary market.

Thank you for allowing me to answer your question.

Troy Ragland
Mortgage Banker
NMLS 358419
0 votes Thank Flag Link Tue Sep 2, 2014
Really depends on how the contract was written. Some lenders, even for VA loans will require a clear termite certificate which in that case seller ( even if it's bank owned) will have to get the termite work done. Usually section one is paid for by seller as those are the areas that show damage. Section two is potential damage and not required for clear cert...but depends on how the contract was written.

Good luck
0 votes Thank Flag Link Sun Jul 15, 2012
Good morning Mark:

I asked one of my preferred lenders this question and here is his reply:

"On a VA, Section 1 items have to be repaired and Section 2 is determined by the VA underwriter when the appraisal and termite report is underwritten and notice of value is issued."

If you would like further explanation on this issue, please give him a call per the information below:

Joseph Fernando
Performance Mortgage

Good luck with your VA loan :)


Eddie Momeny
Realty Executives
0 votes Thank Flag Link Tue May 15, 2012
Great question, one that I just had the experience of dealing with.
The answer is that VA requires a clear Pest Control Inspection. The buyer is not allowed to pay for the cost of the inspection or repairs per VA Guidelines.
In our transaction we had to work out the cost of the repairs outside of the buyer contributing.
If you need any information, give me a call or email anytime.
Michael Regilio, Realty Executives Santa Clarita
0 votes Thank Flag Link Mon May 14, 2012
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