VA Loan Termite Inspection in Tennessee

The report is usually a short, routine step. Order it early so a surprise finding does not push your closing date. Ask for a free inspection and a written price before any treatment.

Why VA requires a termite report in Tennessee

VA's Lenders Handbook (VA Pamphlet 26-7, Chapter 12, Topic 33) has two triggers for a wood destroying insect inspection on a purchase loan:

1. The appraiser sees apparent evidence of infestation or damage. The appraisal is then made subject to an inspection, and all damage must be repaired.
2. The property sits in an area that VA's Termite Infestation Probability Map rates "very heavy" or "moderate to heavy." In that case the inspection report is required on the Notice of Value (NOV), whatever the appraiser sees.

The map's zone borders are hard to read, so VA publishes a local requirements page by state. As of its last update on July 11, 2025, that page lists both Tennessee and Kentucky among the states where wood-destroying insect information is required for the entire state. Whether you buy in Sango or across the line in Oak Grove, plan on the report.

Two exceptions from the same handbook topic:

• Units in high-rise condominiums, where units are stacked vertically, do not need a termite inspection.
• Side-by-side villa or townhome condos in a required zone need one unless the homeowners association provides evidence of treatment.

Small sheds and other detached, non-residential buildings that the appraisal gave no value to may be left off the report.

The NPMA-33 form

The report is the Wood Destroying Insect Inspection Report, form NPMA-33. NPMA's completion guidelines say the form must be used for WDI inspections on HUD and VA guaranteed transactions. They also say it is typically used for conventional loans. Most people at the closing table call it the termite letter.

The form covers four kinds of wood destroying insects:

• termites
• carpenter ants
• carpenter bees
• reinfesting wood boring beetles

Wood rot and fungus are not part of it. NPMA notes HUD and VA do not require the separate fungus attachment as part of their national requirements.

What the report says, in plain terms:

• Box A means no visible evidence of current or past wood destroying insects was found. The inspector should not check it if there is any visible evidence at all.
• Box B means visible evidence was found. The inspector then marks live insects, or signs such as mud tubes and exit holes. Visible damage gets its own box.
• A recommendations section says whether treatment or other corrective action should happen.
• An obstructions section lists what the inspector could not see, such as a finished basement wall or a stored-up crawl space.

Three limits matter. The report covers conditions on the inspection date only. It is not a warranty unless a separate attachment says so. And NPMA's guidelines say the inspector is not a damage expert: the form states that it is not a structural damage report. If Box B is checked and you are worried about damage, NPMA says to call a qualified structural professional.

In Tennessee, the inspection itself is regulated pest control work. The Department of Agriculture's pesticide application rules (chapter 0080-09-04) cover anyone who inspects real property to issue a wood destroying insect infestation report, and inspections for wood destroying organisms count as commercial pest control.

Who pays for the termite inspection

This is the question most buyers ask, and the answer changed in 2022. For years VA let veterans pay for the termite report only in a limited number of states. VA Circular 26-22-11, dated June 15, 2022, changed that:

• Veterans may be charged wood destroying pest inspection fees wherever the NOV requires the inspection.
• Veterans may also pay for any repairs needed to meet VA's Minimum Property Requirements.
• VA encourages veterans to negotiate the cost of the inspection and repairs with the seller.
• The lender needs an itemized invoice that identifies the veteran and the property, to verify the charge on the Closing Disclosure.

The circular says it is valid until rescinded. So yes, you can pay. Whether you should is a negotiation. My view: put it in your offer as a seller expense, and treat paying for it yourself as a small concession if the seller pushes back. Make sure the invoice names you and the property address, because the lender will ask for it.

Published national figures put a termite inspection at $75 to $325, per This Old House (updated June 17, 2026). That is not our quote. Ask the company that inspects the house for a written price first.

If the seller already has a termite contract on the house, ask for a copy early. Tennessee rule 0080-09-04-.08(3) requires termite contracts to be transferable to later owners within the contract term.

Timing before closing

I would order the termite report as soon as the purchase contract is signed, for three reasons:

1. If the report shows activity, the fix has to be finished in time. The circular says repairs identified on the report that VA's property requirements call for must be completed before VA guarantees the loan.
2. If the seller had termites treated before, you need documentation. NPMA's guidelines say the inspector should not change a finished report when documents turn up later. They say to send those documents to the lender instead.
3. Lenders set how recent the report must be at closing. Ask your loan officer for the window on day one, so the inspection does not expire before you close.

If you are buying on PCS orders with a fixed report date, build the termite report into the first week. The Fort Campbell PCS pest guide covers the rest of the move.

What happens if the report finds termites

A Box B report does not kill the deal. It starts a short list of steps.

NPMA's guidelines spell out when the inspector should recommend treatment for subterranean termites:

• Live termites found on or under the structure: treatment should be recommended, even if the house was treated before.
• Evidence such as mud tubes or damage, with no documentation of a treatment that addressed it: treatment should be recommended.
• Evidence on a house that was treated in the past: treatment may be recommended, unless the house is under a warranty or service agreement with a licensed company.
• A bait system in the yard with no proof the contract is current: the inspector may recommend treatment "unless there is a current baiting system service agreement in effect."

Then the buyer and seller sort out who pays for treatment and repairs, the same way they did for the inspection. VA allows the veteran to pay for repairs needed to meet its property requirements, and encourages negotiating them with the seller. Once treatment is done, the lender gets the documentation, and any damage repair the appraisal or VA requires has to be finished before the loan is guaranteed.

Two practical points:

• Get the treatment done under a written Tennessee termite contract, not an informal spot spray. The state rule requires a written contract before any termite treatment, with an inspection graph and at least a one-year retreatment warranty. Our termite treatment page explains what to ask for.
• Read the obstructions section. If the inspector could not see the crawl space, a clean Box A only means nothing visible was found where they could look.

If you saw something during a showing and want to know whether it was termites, send a photo.

Sellers and agents

The buyer and the seller both sign the NPMA-33 at closing. NPMA says the seller's signature means the seller agrees that the property's history of wood destroying insects has been disclosed to the buyer, including past damage and treatment. Gather old termite contracts and treatment receipts before you list. Those documents are what let an inspector, or the lender, see that past evidence was already handled.

If you saw winged insects in the spring before listing, our termite swarm season guide explains what they mean. You can check any company's charter with our Tennessee license check guide.

This page covers VA purchase loans. For FHA or conventional loans, ask your lender whether a termite report is required on your file. This is general information. It is not legal or lending advice.

We only refer companies chartered by the Tennessee Department of Agriculture (and licensed by the Kentucky Department of Agriculture for Kentucky addresses).