Termite Infestation and loan issues

If you have an FHA loan, it's not the lender. The lender has to follow FHA guidelines to what a livable and safe home is. FHA will not insure a home that doesn't meet the HUD standards and conventional loans same for conventional.You're best bet is to negotiate with the seller to give you a credit to have the work done and the termite company gets paid at closing.

Typically the seller should pay for a Termite Treatment to be conducted and having a paid receipt confirming this should be fine. Maybe the agent(s) can help get this issue resolved unless you are buyer a house directly from a seller. I would doubt that a sale should not go through for a very small cost for this treatment. Good Luck!

Once the lender is aware of the termite issue, then it has to be addressed or they will not lend on the property.. PERIOD!!.. The seller can pay for the fix and provide a paid receipt, or the seller can find a company that will accept payment through escrow from the proceeds of the sale.. It's possible the seller can allow you to pay for the treatment but I would not recommend this, because if you don't close, you wont get your money back.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Two options: Some lenders (including my company) do not require a termite report (unless the appraiser recommends one). The other option is a repair escrow or renovation loan to fix the termite damage. Be prepared that either option may require a delay of at least several weeks in your closing. I can help: pdumouchel@primelending.com or 843-619-6025 http://pdumouchel.primelending.com **PrimeLending was #4 purchase mortgage lender in the US in 2012 and 2013 as determined by MarketTrac(c) for Jan-Dec 2012 & 2013