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VA - Termite Inspection

Due to the rapidly changing environment to the mortgage lending industry caused by COVID-19, VA in Circular 26-20-13, has provided updated guidance and instruction for valuation and appraising for all VA home loan purposes. 

Below is updated guidance for termite inspections for VA purchase and cash-out refinance transactions:

  1. Purchase Transactions: If there is no known or visible evidence of termite infestation present, the seller and realtor must provide a certification to that fact and the Veteran must acknowledge that no inspection was completed. VA recommends the Veteran to complete an inspection once the national emergency has ended. If there is known or visible evidence of termite infestation, a clear termite report must be provided within 180 days of close of escrow. 
  1. Cash-Out Refinance Transactions: The Veteran can provide a certificate of fact if there is no known or visible evidence of termite infestation present. If there is known or visible evidence of termite infestation, a clear termite report must be provided within 180 days of close of escrow. 

Fairway has prepared certifications to be signed by the realtors, sellers and borrowers in purchase transactions and for borrower’s signature in refinance transactions. Both certifications can be found by clicking below: 

For more information on COVID-19 Temporary Guidance, see Fairway’s guidelines. 

Please contact your Regional Account Manager should you have any questions related to this Client Announcement.

 

Client Announcement 2020-04-22