Pest Control

Information by State  Print version  Email this to a friend

Chapter 1
Appraisal & Property Requirements
Page 1-23

Requiring Reports and Treatment

Wood destroying insects and other organisms can cause serious problems in the wood structural components of a house and may go undetected for a long period of time. FHA requires maximum assurance that a home is free of any infestation.  Determine if your location must comply. Also see: TIP Zones Page 1-23a

1. New Construction: The Department’s policy concerning the requirement for builder’s warranty against termite infestation in new homes is outlined in Mortgagee Letter 99-03. All chemical soil treatments, bait systems, and chemical wood treatment must be approved by the Environmental Protection Agency (EPA) and applied in accordance with the EPA label instructions. When these methods of protection are provided, the NPCA-99a form is to be completed in accordance with the mortgagee letter. However, in some cases it is not feasible for a builder to arrange for soil treatment. In this regard, the National CABO code allows a builder to utilize pressure treated wood as a measure of termite protection. If pressure treated wood is used, however, it must be used in all framing members up to and including the top plate of the first floor level wall. This includes the subfloor and floor joists of the first floor. The use of pressure treated wood in only the sill plate is not acceptable. When using pressure treated wood, the NPCA-99a form is not to be used. In such cases, the builder must provide the lender with a letter stating that the house is protected from termites by the use of pressure treated wood. The builder must also provide the home buyer with a one year warranty against termites similar to that required on the NPCA-99a form. New Construction = proposed construction, under construction and existing less than 1 year old.

Soil treatment, NPCA-99b, PLUS one year guarantee NPCA-99a ;  OR

Bait system/Wood PLUS NPCA-99a ; OR

Any construction determined not requiring termite protection by the CABO One and Two Family Dwelling Code (i.e., steel frame or concrete structures, or structures built of pressure treated or termite resistant wood with only minor interior wood trim. Roof sheathing may be untreated wood).

2. Existing (over 1 year old): For existing construction in affected areas, Form NPCA-1, Wood Destroying Insect Infestation Inspection Report, or a state mandated form, will be required and will be valid for 90 days from the date of the inspection. (Mortgagee Letter 95-33)

3. Condominiums: The first floor units of a condominium are subject to the same inspection requirements as stated in the section titled "existing (over 1 year old)" (The inspection is to include ground floor attached and or detached garage, shed, and other structure that are apart of the subject). If the unit is on the second floor or above, then a wood destroying pest inspection is not automatically required. However, if the appraiser detects evidence of possible dry rot or infestation by some wood-destroying organism, the appraiser must call for the inspection report. In order to waive the repair requirements on a condominium a letter from the homeowners association listing the date of scheduled repairs, name of the contractor awarded the work, and acknowledgment that the funds necessary to pay for those repairs has already been budgeted and/or collected should be attached to the home buyer summary with a copy retained in the case binder.

Appraisers are to observe all areas of the house and other structures/areas within the legal boundaries of the property that have potential for infestation by termites and other wood destroying organisms, including the bottoms of exterior doors and frames, wood siding in contact with the ground and crawl spaces. Mud tunnels running from the ground up the side of the house may indicate termite infestation. Observe the eave and gable vents and wood window sills for indication of the entrance of swarming termites and note excessive dampness or large areas where the vegetation is dead. Evidence of active termite infestation must be noted.

The following are guidelines for clearance of termite report conditions in states where section termite reports are provided. On these reports each finding/recommendation will be noted in either Section I or Section II, or the equivalent.

a. Section I: contains items where there is evidence of active infestation, infection or conditions that have resulted in or from infestation or infection.

b. Section II: items are conditions deemed likely to lead to infestation or infection, but where no visible evidence of such was found. The Structural Pest Control Board has advised that Section II items will probably be major items which have not become infestations/infections, but possibly will become in the future.