VA Loans and Navigating WDI Inspections in Arizona
Quick Summary: Please read the whole article but if you’re using a VA loan, make sure to ask the inspector to also fill out the NPMA-33 federal form and use that instead of the Arizona state form.
Termite inspections are not just a formality but a crucial safeguard against potential property damage. Whether you're buying a new home or ensuring the longevity of your current residence, understanding the differences between state and federal wood-destroying insect inspection reports (WDIIR) can make all the difference, especially when using a Department of Veterans Affairs (VA) loan.
State vs. Federal Forms: What's the Distinction?
Arizona State WDIIR:
Arizona, like many states, has its own specific requirements when it comes to termite inspections. The Arizona state WDIIR is governed by the Arizona Department of Agriculture (AZDA) (INSERT THIS HYPERLINK: https://opm.azda.gov/).
Local Expertise: The state form is crafted with local expertise, taking into account the types of WDIs commonly found in Arizona and their behavior patterns. This ensures that inspectors are looking for signs of infestation that are relevant to the area.
Regulatory Compliance: Compliance with state regulations is paramount. The state form ensures that all necessary information is collected and reported as per Arizona state laws, which may differ slightly from federal guidelines.
Comprehensive Coverage: It typically covers not just WDIs that are prevalent in Arizona, but conditions conducive to WDIs such as faulty grading, wood-to-earth contact, moisture issues, etc. This broader scope ensures a more thorough inspection.
Federal Termite Inspection Form:
On the other hand, the federal termite inspection form, often referred to as the NPMA-33 form (National Pest Management Association) (INSERT THIS HYPERLINK: https://www.npmapestworld.org/) , is more standardized across the United States. Here’s how it differs:
National Standards: The NPMA-33 form adheres to national standards set by the federal government, providing a uniform template that can be used in any state. This consistency is beneficial for interstate transactions or for lenders who require a standardized report.
Generalized Approach: The federal form may not capture specific nuances that the state requires. It only requires reporting on the presence or absence of WDI evidence. It leaves out conditions conducive to WDIs. Inspectors using this form may need additional local knowledge to supplement their inspection.
Wider Applicability: It is widely accepted across the country and recognized by many lending institutions and real estate professionals, which can streamline the inspection process, especially in transactions involving parties from different states.
VA Loans: Why the federal form is a better choice
One hangup in the home purchasing process can be the WDIIR. When using a VA loan, it generally is required to fix all the conditions conducive to termites that the state form reports on. Things like previous termite damage, moisture stains in an attic, water damage under a sink, and a bush touching the house can hold up the loan. Those things are often asked to be repaired and reinspected before moving on with the loan. Often, this causes frustration for everyone involved, including the inspector.
Inspectors have to report on what they see and when going back to reinspect a house, an inspector has intimate knowledge of where all the issues are. Sellers often do not fix or cover up water stains in an attic, old water damage under sinks, old termite damage that may have been there for 20 years, faulty grade, plants touching the home, etc. So when asked to do a reinspection, those conditions are often still present and will need to be reported on a second time. This can become an arduous process of reinspections and things not being finished.
When using a VA loan, it is recommended to make the inspector aware of this up front. When they are filling out the state form, they can also fill out the federal NPMA-33 form. It is up to the buyer and their agent what forms they provide to the lender. When providing only the NPMA-33 form to the lender, there seems to be less issues in the process. Again, the federal form only requires inspectors to report on the presence or absence of WDI activity. It’s either yes, activity was present or no, it wasn’t present. When present, treatment or proof of recent treatment is the required fix. There isn’t a need to deal with water stains, plants, wood-to-earth contact, etc. when using the federal form.
Conclusion
While it can be difficult to navigate all the different forms and requirements when purchasing a home, having knowledge of the different WDI forms and which one to use can make a huge difference. Let Dwellinspect Arizona inspect your home for termites and other WDIs to ensure a safe, termite-free home for you and your family.