If you’re a homebuyer using a VA loan to finance your property, there’s a unique requirement that can easily trip up your transaction: the VA loan clear pest report. Unlike conventional loans or even FHA loans in some cases, VA loans have strict pest inspection guidelines—and not understanding them can delay or even jeopardize your closing.

This article breaks down the VA loan pest inspection requirement, especially when it comes to homes that have previously had termite damage. We’ll cover why a general statement like “no current termites” doesn’t cut it, what a “clear” report actually means, and how to make sure your loan stays on track.

Why Does the VA Care About Termites?

The Department of Veterans Affairs wants to ensure that the homes financed through VA loans are structurally sound and safe for veterans and their families. Termite and wood-destroying pest damage can compromise the integrity of a home—and that risk is something the VA takes seriously.

That’s why in many states, including California, a pest inspection report is required for any property being financed with a VA loan.

A “Clear” Pest Report Is Not Just a Termite-Free Statement

One of the most common misunderstandings in VA transactions is assuming that a verbal or casual written statement saying “the property is free of termites” is sufficient. It is not.

Here’s what the VA actually requires:

A formal wood-destroying pest and organism (WDO) inspection report
Issued by a licensed pest control operator
Specifically stating that the home is free of active infestation and damage OR
If there was a prior issue, the report must show that treatment and full repairs have been completed

In short, if a pest report shows there was termite damage or dry rot at any point—there must be evidence it was professionally treated and repaired, and the report must reflect that all corrective work has been completed and signed off.

What If the Home Had Previous Termite Damage?

This is where it gets critical.

Let’s say the original pest report shows drywood termites or fungal decay. A common mistake is for the seller to just treat the problem and call it good. Sometimes they’ll even get a brief letter from the pest company saying “no current activity.” That doesn’t meet VA guidelines.

VA underwriters will expect to see:

1. The original report identifying the damage

2. A follow-up clearance (often called a “Section 1 Clearance” in California)

3. Confirmation that all noted repairs were completed

The final report must show zero open items—no pending work, no partially treated areas, and no recommendations left unaddressed.

Who Pays for the Pest Inspection and Clearance?

Historically, VA guidelines did not allow veterans to pay for the pest inspection. However, this rule has changed in many states. As of recent updates, veterans in California can pay for their own pest inspections unless the lender or seller agrees to cover it.

That said, in competitive markets, it’s often strategic for the seller to handle the cost, especially if the home has visible damage or if they want to keep the deal moving forward.

Tips for a Smooth VA Transaction

Get the pest inspection early. Don’t wait for it to be a condition later in the loan process.
Ask for the full report. Not just a summary letter—underwriters need the whole thing.
Ensure repairs are done by a licensed pest company. Handyman patchwork may not be acceptable.
Get written clearance. You need documentation showing all items were treated and repaired.
Work with a VA-experienced lender. This requirement is just one of many unique aspects of VA loans that experienced lenders handle routinely.

Final Thoughts

The VA loan clear pest report isn’t just a formality—it’s a critical requirement that can impact your loan approval and timeline. If termite damage existed at any point, it must be properly addressed and documented with a licensed clearance.

At the end of the day, the VA’s goal is the same as yours: to ensure you’re buying a safe, solid home that will serve you and your family well. Taking these extra steps ensures your loan process stays smooth and successful.

Looking for a VA loan to buy or refinance a home? Get a no cost quote today!