FHA and USDA loans handle wood-destroying insects differently from VA loans. Neither requires a report on every transaction. FHA is appraiser-triggered — the inspection follows what the appraiser observes. USDA requires one only where the lender, appraiser, inspector, or state law calls for it. New construction under FHA uses two entirely different forms.
This is general information, not legal or lending advice. Program handbooks are revised, and your lender applies them. Confirm your specific requirement with your lender.
FHA: the appraiser decides
FHA requires the property to meet minimum property requirements, which include being free of termite infestation. The mechanism is the appraisal.
An FHA-approved appraiser observes the foundation and the perimeter of the buildings for evidence of wood-destroying pests. A wood-destroying insect inspection is required if the appraiser notes any of the following:
- visible evidence of termites or other wood-destroying organisms;
- signs of previous treatment — drill holes in slab or foundation, treatment tags, bait stations;
- conditions conducive to infestation — wood-to-soil contact, excess moisture, poor drainage, wood debris under the structure.
That third category catches people out. Nothing needs to be wrong with the house. A deck post set directly into soil, or a downspout discharging against the foundation, is enough to trigger the requirement.
What that means for a seller in Virginia
Two things follow, and they are worth acting on before the appraiser arrives.
Conducive conditions are cheap to fix and expensive to ignore. Pulling mulch back from the siding, clearing wood debris from a crawl space, redirecting a downspout — these are afternoon tasks that can remove the trigger entirely.
Old treatment evidence counts. Drill holes from a treatment done fifteen years ago are visible evidence of previous treatment and can prompt the requirement even where no insect has been seen in a decade.
Neither of these is a reason for concern about the house. They are reasons to expect the inspection and to schedule accordingly.
FHA new construction: different forms entirely
New construction is not handled with the standard inspection report. It uses builder documentation:
| Form | What it is | When used |
|---|---|---|
| HUD-NPMA-99-A | Subterranean Termite Protection Builder's Guarantee — what the builder did to prevent infestation | required for new construction under current HUD guidance |
| HUD-NPMA-99-B | New Construction Subterranean Termite Service Record | typically required where the soil was treated with a chemical termiticide |
If you are buying new construction, ask the builder for these before settlement rather than discovering at underwriting that they were never completed.
USDA: conditional, not automatic
USDA guidance states that termite and pest inspections are not required unless the lender, appraiser, inspector, or state law requires one to confirm the property is free of active infestation.
In practice that means:
- lenders in termite-prone areas commonly require it regardless of visible signs;
- geographic tables published by the agency determine where it applies;
- an appraiser's observation can trigger it in the same way as under FHA.
Where a report is required, a licensed inspector must confirm the property is free of active infestation and significant pest-related damage. If infestation is found, treatment and repair of resulting structural damage are required before the loan can close.
USDA direct loans: a broader inspection
Direct loans work differently from guaranteed loans.
Under the agency's handbook for direct loans, an applicant buying or refinancing an existing dwelling must engage a state-licensed inspector to perform a whole-house inspection certifying that the dwelling meets "decent, safe, and sanitary" standards across several areas — termites and other pests among them.
That is a broader exercise than a wood-destroying insect report, and it is a different inspector. Do not assume the NPMA-33 satisfies it.
How this interacts with your contract
Under the standard Northern Virginia sales contract, the seller already owes a wood-destroying insect report, plus treatment and repair of damage identified, with written evidence before settlement.
That contract obligation is usually broader than what FHA or USDA requires. So in a typical Virginia contract purchase, the program rule adds nothing you did not already have.
It becomes decisive in three situations:
- the contract clause was deleted by an "as is" provision;
- you are refinancing, where no contract exists;
- the property is new construction, where different forms apply.
Where you stand, by role
If you are buying with an FHA loan
Whether you need an inspection depends on what the appraiser observes.
Your action: ask your lender after the appraisal whether the report was triggered, and if so order it immediately — the timeline is the constraint, not the cost.
If you are selling to an FHA buyer
You can influence the trigger before the appraiser arrives.
Your action: clear conducive conditions — mulch against siding, wood-to-soil contact, debris in the crawl space, drainage discharging at the foundation. Expect the requirement anyway if the house shows old treatment evidence.
If you are buying new construction
The standard report is not what applies.
Your action: ask the builder for the builder's guarantee, and for the service record if the soil was treated, well before settlement.
If you are using a USDA direct loan
A whole-house inspection by a state-licensed inspector is required, covering more than pests.
Your action: clarify with your lender which inspection is required and which professional performs it, so you do not pay for the wrong one.
Before you call: what costs what
An inspection and a treatment are two separate services with separate prices, and conflating them is the most common way people end up surprised by a bill.
| Typical Virginia range | What it produces | |
|---|---|---|
| Wood-destroying insect inspection and report | $65–$200 | the NPMA-33 form |
| General pest inspection | often free where the company expects to quote treatment | a verbal or written assessment |
| Termite treatment | $500–$2,000; more where damage is extensive | a treatment record |
| Structural repair | quoted by a contractor, frequently the largest of the three | an invoice, not a pest control document |
What is usually free: a quote for treatment, once a company has seen the problem.
What is usually not: the inspection report used in a real estate transaction, and any visit that produces a document rather than a price.
Ask which applies before you book. A company quoting one figure covering both inspection and treatment is not quoting what a sales contract or a lender requires.
Common misunderstandings
"FHA always requires a termite inspection." It is triggered by the appraiser's observations.
"Nothing was found, so no inspection is needed." Conducive conditions alone can trigger it, with no insect present.
"USDA never requires one." It is conditional — lender, appraiser, inspector, or state law can require it.
"New construction doesn't need anything." It needs the builder's guarantee, and the service record where soil was treated.
"The NPMA-33 covers the USDA direct loan requirement." The direct-loan whole-house inspection is a different exercise by a different inspector.
"Old drill holes are a problem." They are evidence of previous treatment, which can trigger the requirement. That is not the same as a defect.
What to ask your lender
- Did the appraisal trigger a wood-destroying insect requirement on this property?
- Which form do you need — the standard report, or new-construction documentation?
- How close to settlement must it be dated?
- If live activity is found, do you require completed treatment before funding?
- For a USDA direct loan, which inspection is required and who is qualified to perform it?
What to ask the inspection company
- Does your price include the completed form the lender requires?
- Under what name is your Virginia pesticide business license held?
- Do you complete new-construction builder forms, or only the standard report?
- What conducive conditions will you record, and does that affect the finding?
- Is re-inspection after treatment included?
What to have ready before you call
Property address, loan type, whether the property is new construction, year built, foundation type, settlement date, and whether the appraiser has already flagged anything.
Frequently asked questions
Does FHA require the same form as VA? Existing properties use the standard NPMA-33. New construction uses the builder's guarantee and service record forms.
Who pays under FHA? It is negotiable and depends on the contract. In Virginia the standard sales contract already places the report on the seller.
Does a conducive condition have to be fixed? The report notes it. Whether anyone is obligated to fix it depends on your contract, not on the program.
Can the appraiser require treatment? The appraiser identifies the need for an inspection. The inspection determines whether treatment is warranted.
How long is the report valid? Roughly 90 days is the working standard; a delayed closing may require re-inspection.
Verify before you pay anyone
VDACS publishes an updated list of licensed pesticide businesses weekly, with a public lookup for confirming an active Pesticide Business License. Wood-destroying pest control is category 7b under 2VAC5-685-70.
Ask which name the license is held under — trade names often differ from the licensed entity.
VPMA maintains a directory of inspectors holding its voluntary WDI certification.