FHA Termite Inspection: What Southern California Homeowners Need to Know

Buying or refinancing a home with an FHA-backed loan in Los Angeles or Orange County often involves a termite inspection. California’s warm, termite-friendly climate makes these inspections a key part of protecting your investment and keeping your loan on track.

Does FHA Require a Termite Inspection in Southern California?

FHA guidance and California’s high-risk status

The HUD Handbook 4000.1 indicates that an inspection for wood-destroying insects is required when an appraiser observes evidence of infestation, when conditions are conducive to infestation, when it is customary in the area, or when state or local regulations require it. In practice, Southern California is widely regarded as high risk for termites, and many lenders therefore expect a current report during FHA transactions. The Termite Infestation Probability Map underscores why SoCal homes face persistent pressure from subterranean and drywood termites.

Special Termite Requirements for New Construction with FHA Loans

When it comes to new construction, the FHA and HUD have established specific termite-related requirements that differ from those for existing homes. If you’re purchasing a newly built home in Orange County or Los Angeles County with an FHA loan, it’s important to understand these guidelines to ensure a smooth closing process and long-term protection for your investment.

What Qualifies as “New Construction” Under FHA Guidelines?

HUD defines “new construction” broadly. It includes homes that are proposed, currently under construction, or have been completed and occupied for less than one year. This definition is crucial because it determines which termite documentation and inspections are required for your property.

Essential Termite Documents for New Construction

For new homes financed with an FHA loan, several termite-related documents must be provided. These requirements are designed to protect both the homeowner and the lender from the costly damage termites can cause, especially in Southern California’s climate where termite activity is common.

• Wood Infestation Report: This report is generally required for most new properties. However, if the home is located in an area classified by HUD as having “no to slight infestation” (as listed in HUD’s Termite Treatment Exception Areas), this requirement may be waived. Most of Orange County and Los Angeles County are not exempt, so this report is typically necessary.
• Form HUD-NPMA-99-A (Subterranean Termite Protection Builder’s Guarantee): This form is mandatory for all new construction. It serves as a builder’s guarantee that proper termite protection measures have been implemented during construction, such as physical barriers or soil treatments.
• Form HUD-NPMA-99-B (New Construction Subterranean Termite Service Record): This document is required if the property has been treated with a soil-applied termiticide. It provides a record of the treatment, including the type of chemical used and the date of application, ensuring transparency and ongoing protection for the new homeowner.

When Is an FHA Termite Inspection Triggered?

The FHA appraisal includes a visual check for wood-destroying pests. If the appraiser notes any of the following, a termite inspection is required:

• Visible evidence of termites or other wood-destroying organisms
• Signs of previous termite treatment, such as drill holes or treatment tags
• Conditions that could lead to infestation, including wood-to-soil contact or excess moisture

Once flagged, the loan process typically pauses until a licensed pest control specialist inspects the property and, if necessary, treats it. Lenders usually require a clear wood-destroying insect report, such as an NPMA-33, or equivalent documentation before closing.

Section 1 vs. Section 2 Clearance

In California, termite inspection reports are commonly divided into two sections. FHA underwriters focus on Section 1 for funding approval, while Section 2 items are still worth addressing to prevent future problems.

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For a plain-language overview of California report sections, see the Consumer Guide to Structural Pest Control from the California Structural Pest Control Board.

Who Pays for the FHA Termite Inspection, and What Does It Cost?

Inspection costs are negotiable in California real estate transactions. Many sellers cover the inspection and any required Section 1 work, especially in FHA or VA deals, but this can vary by property and market conditions.

• Typical inspection fee range: $75 to $150, based on property size and access
• Manufactured and mobile homes often require special attention due to construction features that increase risk
• Ask your lender and agent who customarily pays in your area and how reports are handled in escrow

Tip: Clarify up front whether your lender requires a specific report format, how long the report is considered valid, and whether any reinspection fees could apply after repairs.

What Happens If Termites or Damage Are Found?

FHA guidelines require that active infestations be treated and any damage be repaired by qualified professionals before the loan can close. Your lender will need documentation of both treatment and repairs, followed by a clear report. For buyers using an FHA 203(k) renovation loan, repair funds are typically set aside in the renovation budget, and full remediation is required.

How Long Is a Termite Clearance Valid?

Many lenders accept termite clearances for about 90 days, and some extend acceptance to six months. Policies vary, so confirm your lender’s time frame and plan your inspection date to keep documents current through closing.

Types of FHA Termite Inspections: What’s Included?

In California, FHA transactions typically call for a full wood-destroying organism inspection. Beyond termites, inspectors watch for other pests and conditions that can damage wood structures:

• Subterranean and drywood termites
• Carpenter ants and beetles
• Fungi and dry rot
• Excess moisture and ventilation issues

Learn more about local termite species and risks from UC IPM.

Why Southern California’s Climate Keeps Lenders Vigilant

Termites remain active year-round in much of Los Angeles and Orange County thanks to mild temperatures. A property that looks fine in winter can develop problems by spring, so lenders often ask for current inspections even if a previous report is on file.

FHA, Pest Control, and Repairs: How The Termite Guy Can Help

The Termite Guy serves Southern California homeowners, buyers, sellers, and real estate pros with fast scheduling, clear reports, and licensed treatments. Our team helps keep escrows on track by managing inspection, treatment, and repairs under one roof.

• Licensed FHA-compliant termite and WDO inspections
• Localized treatments and whole-structure fumigation
• Section 1 clearance and optional Section 2 solutions
• Repair of termite-damaged wood, including structural and finish carpentry
• Termite-resistant upgrades for exposed wood features such as pergolas and patio covers

Ready for Your FHA Termite Inspection? Trust The Termite Guy

Whether you are buying, selling, or refinancing in Los Angeles or Orange County, The Termite Guy is ready to help. Get a fast, lender-ready inspection, effective treatment options, and expert repairs from a team that understands FHA timelines and documentation. Contact us today to schedule your inspection.