When buying a home with a VA loan in Kentucky, termite inspections are an important consideration because the state falls into the “moderate to heavy” termite risk zone. Here’s a comprehensive overview of termite inspections related to VA loans, especially focusing on the updated regulations in June 2022.
Importance of Termite Inspections
Termite inspections are vital due to the significant damage these pests can cause to homes. In the United States, termites affect over 600,000 homes annually, costing about $5 billion. Given the risk, the VA is committed to ensuring properties financed through VA loans are safe and free from termite-related issues, especially in regions prone to infestation. Source
Updated Regulations as of June 2022
In June 2022, the VA updated its policies to allow VA loan borrowers the option to pay for termite inspections when required, a departure from previous rules where the borrower couldn’t bear the cost. This update is particularly relevant when the inspection is mandatory to meet VA’s minimum property requirements. The average cost for a termite inspection ranges from $100 to $200, but negotiations between buyers and sellers often result in sellers covering this fee. Source
Requirements for Kentucky
Kentucky is listed among the states where a termite inspection is mandatory before finalizing a home loan due to its classification in the “moderate to heavy” termite risk zone. This aligns with VA’s criteria to ensure that the properties are safe and structurally sound. Source
Who Pays for the Inspection?
Before the June 2022 update, VA borrowers were not allowed to pay for termite inspections, a responsibility often assumed by sellers or lenders. The policy change now allows buyers in certain states, including Kentucky, to cover the cost of termite inspections, thereby making VA loan offers more appealing to sellers by removing potential financial burdens on them.
It’s crucial for potential homebuyers using a VA loan to understand these requirements and consider them in their homebuying process. Always consult a real estate professional familiar with VA loans and local regulations to ensure a smooth and compliant transaction. For more detailed information and guidance, reaching out to a Regional Loan Center can be beneficial, especially if there are unique circumstances or variances needed regarding pest inspections in your area. Source
This information is essential for anyone looking to purchase a home in Kentucky with a VA loan, ensuring they’re fully informed about the termite inspection process and related costs as of the latest updates in June 2022.
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