Thank you for allowing me to answer your question.
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:
Good luck with your VA loan :)
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