For VA loans, water and wood rules require safe potable water, sanitary sewage disposal, and sound wood free of pests or rot. Private wells often need lab tests, septic systems must function, and termite inspections are required where risk or evidence exists. Prepare documents, schedule inspections, and complete repairs quickly to keep your closing on schedule.
Quick Facts
- Potable water is required from public, community, or private sources meeting health standards.
- Septic systems must operate properly without surfacing effluent, backups, or observable failures.
- Termite or wood destroying insect inspections are required in risk areas or when evidence exists.
- Repairs and treatments must be completed and documented before the loan can fund.
- Appraisal verifies safety and sanitation, an inspection still adds deeper condition insight.
Mini FAQ
Do all VA loans require a termite inspection
No. A wood destroying insect inspection is required in regions with elevated risk, or when an appraiser observes evidence or damage. Lenders may also require one based on local practice. When activity is found, treatment and any damaged wood repairs must be documented before funding.
Are septic inspections mandatory in every state
Requirements vary. VA requires sanitary sewage disposal and functioning systems, while lenders and local authorities often require formal septic inspections, service records, or testing. If a defect or backup is observed, repairs and proof of correction are required before the lender can clear conditions and fund the loan.
How do I handle a private well for VA financing
Order a lab test promptly, follow local health standards, and keep utilities on. Provide test results, any well completion data, and, when applicable, a shared well agreement or community documentation. Upload proof before requesting reinspection to avoid timing gaps that delay your closing date unnecessarily.
Key Takeaways
- VA requires potable water, sanitary sewage disposal, and sound wood without pests, rot, or fungus.
- Private wells often need lab testing, coordinate sampling early to match your appraisal schedule.
- Septic issues must be repaired and verified, surfacing effluent or backups always delay funding.
- Termite inspections are required in risk areas, treatment and repair documents clear conditions.
- Upload labeled photos, invoices, permits, and test results so underwriting clears items quickly.
- Request reinspection after everything is complete, confirm access and utilities for a single visit.
What exactly are the VA “Water And Wood Rules” and why do they matter for approval
They ensure potable water, sanitary sewage, and wood free of active pests or rot so the home is safe and livable. Appraisers apply Minimum Property Requirements while lenders verify documents and corrections. Passing these checks avoids reinspections and keeps your closing timeline intact. The VA Lenders Handbook is the governing reference lenders and appraisers use for MPR standards. VA Lenders Handbook portal.
- Water sources must be reliable and safe, public service is usually accepted, while private wells often require documented potability that meets local or federal health standards for common contaminants and safe usage by the Veteran household.
- Sewage disposal must function without backups, odors, or surfacing effluent, lenders may require septic evaluations, service records, or permits depending on region and observed conditions, ensuring sanitation and protecting property value and health.
- Wood components must be free of active termites or destructive organisms, risk areas or visible evidence trigger inspection and treatment, followed by repair of any damaged members so the structure remains sound at move in.
- Turn on utilities, confirm access, and stage documents, including well tests, septic records, and any prior remediation invoices if the property had past issues corrected before listing or before your purchase contract.
- Fix simple safety items immediately and photograph results so your proof packet is ready, allowing the lender to clear administrative conditions while the appraiser completes the site review efficiently.
- Coordinate early with your loan officer about local expectations for wells, septic systems, and pest inspection timing to avoid last minute rescheduling and rate lock pressure.
VA Minimum Property Requirements: The Essential Checklists
- The Master Guide: VA Minimum Property Requirements (MPRs) – The complete overview of the VA's "Safe, Sound & Sanitary" standards for every homebuyer.
- VA Appraisal Timeline & Closing Checklist – A step‑by‑step timeline of the appraisal process, from ordering the report to clearing conditions for closing.
- VA Water, Well & Septic Guidelines – Essential testing requirements for private wells, shared wells, and septic connection distances.
- VA Termite & Pest Inspection Requirements (NPMA‑33) – See which states require termite inspections, who is allowed to pay for them, and how to clear Section 1 repairs.
- VA Private Road & Access Agreements – How to handle private roads, shared driveways, and the updated rules for easement waivers.
Which water tests and documents clear a private or community well for VA financing
Private wells typically need lab results proving potability, while community systems require evidence of capacity and service. Lenders align standards with local health authorities. Order tests early and upload results before you request reinspection. For household drinking water basics and contaminants context, see the Environmental Protection Agency’s drinking water resources. EPA drinking water basics.
- Private well testing often includes bacteriological and common chemical parameters relevant to the area, lenders want clear pass reports, and may also request flow data or well completion details if questions arise during underwriting review.
- Shared or community wells usually require a recorded agreement, evidence of ongoing service and maintenance, and cost sharing terms that demonstrate reliability and fairness for the Veteran household joining the system.
- Public systems are typically accepted with an active account and normal operation, unusual taste or odor or visible issues can still prompt questions that require a short written confirmation to satisfy the reviewer.
- Order the lab test within the first week of escrow so reporting times do not collide with appraisal due dates and rate lock expiration concerns as your file nears final underwriting review.
- Upload test results and any agreements or completion data in one labeled packet, then notify your lender so the reviewer clears water documentation before the appraiser returns for any reinspection appointment.
- If a result fails, consult your lender immediately about retesting after treatment, and confirm what proof will satisfy clearance once corrective steps are complete and documented properly.
| System type | Typical requirement | Proof examples |
|---|---|---|
| Public water | Active service and normal operation | Account statement, photo evidence of operation |
| Private well | Potability test and reliable flow | Lab report, well log, flow note |
| Shared or community well | Recorded agreement and service capacity | Recorded agreement, HOA or operator letter |
Are septic inspections required, and how do you satisfy sanitation standards quickly
VA requires sanitary sewage disposal and a functioning system, while lenders and local rules often require septic inspections or recent service proof. If defects are found, repair and document before funding. Appraiser observations of backups or surfacing effluent always trigger correction. The VA Lenders Handbook describes these sanitation expectations for property eligibility. VA Lenders Handbook portal.
- Inspections focus on proper drainage, tank integrity, lines free of blockage, and evidence that the leach area disperses wastewater without surfacing or saturating soil, protecting both health and structural components near the system.
- Underwriting may also request recent pump receipts or service logs when the appraiser notes concerns, completing service and providing documentation early prevents an extended back and forth process that risks your closing date.
- If a municipal sewer serves the property, a simple confirmation of active connection and normal operation typically satisfies sanitation clearance when no defects are observed during the appraisal visit.
- Schedule a septic evaluation immediately for homes with private systems, align the appointment with appraisal timing, and collect the written report and any service receipts without delay.
- Repair defects quickly, including line breaks or failed components, and photograph ground conditions after work to demonstrate proper drainage and corrected function clearly to the reviewer.
- Upload the report, receipts, and photos together, then request written confirmation from your lender that sanitation conditions are cleared in the loan file before requesting reinspection.
When is a termite or wood destroying insect inspection required, and what clears it
It is required in risk regions or when the appraiser observes evidence, and any activity must be treated with damaged wood repaired and documented. Clearance letters come from licensed pest professionals according to local standards. For general consumer guidance on termite risks and safe treatment practices, review the Environmental Protection Agency’s resources. EPA termite information.
- Risk regions are designated by local practice and historical prevalence, and lenders may always require an inspection when property age, construction type, or neighborhood history suggests elevated probability of infestation for the Veteran buyer.
- Clearance letters must state no evidence of active infestation or residual damage threatening structure, and if treatment occurred, the report should describe the method and include any warranty terms available to the new owner after closing.
- When damage is identified, qualified contractors replace or reinforce affected members and correct the moisture source that allowed infestation, completion proof should include photos, invoices, and any permits if structural work was required.
- Order the inspection as soon as your offer is accepted, coordinate access with the appraiser where possible to reduce multiple trips and minimize disruptions to the seller and to your schedule.
- If activity is found, approve treatment immediately and schedule repairs so both can be verified before your planned reinspection window, preventing last minute surprises that push closing.
- Collect a clean clearance letter and labeled photos, then upload them with invoices to your lender, requesting confirmation that pest related conditions are fully cleared before signing.
How do you stage proof and pass reinspection on the first attempt
Finish every required item, upload a single labeled packet, and request reinspection with guaranteed access and utilities on. Underwriting clears faster when evidence is complete. If deadlines are tight, escalate early. For high level program and appraisal process context, the VA purchase loan overview explains roles and steps. VA purchase loan overview.
- Batch photos, invoices, permits, and test results in one message that maps each file to the exact appraisal condition wording, concise organization prevents repeated requests and speeds the lender’s path to a clear to close status.
- Confirm a live contact, access instructions, and pets are handled for the reinspection window, access missteps are the leading cause of unnecessary return visits and schedule slippage as the closing date approaches quickly.
- Verify reinspection results post to your portal as cleared conditions well before signing, then confirm no outstanding appraisal fees or documents remain unpaid or unsubmitted that might block final document preparation on closing day.
- Do not request reinspection until the last item is truly complete and documented, partial requests often force second trips and new fees that pressure timelines and create frustration for everyone involved.
- Keep a simple date tracker for rate lock, contingency removal, and appraisal deadlines, escalate immediately if a contractor or lab test slips beyond plan, and consider backup vendors when needed.
- Ask the lender to confirm, in writing, that appraisal conditions are cleared, then schedule signing confidently with title once the file is marked ready to close.
| Status | Item | Responsible party | Proof required | Target date |
|---|---|---|---|---|
| ☐ | Private well potability results uploaded | Buyer | Lab report, flow note | _____ |
| ☐ | Septic inspection and service proof uploaded | Seller | Report, pump receipt, photos | _____ |
| ☐ | Termite treatment and damaged wood repair | Contractor | Treatment invoice, repair photos | _____ |
| ☐ | Termite clearance letter uploaded | Buyer’s agent | Clearance letter copy | _____ |
| ☐ | Reinspection scheduled and access confirmed | Lender or AMC | Email confirmation | _____ |
The Bottom Line
Water and wood rules are straightforward when you plan early and document completely. Safe potable water, sanitary sewage, and sound wood free of pests are the three essentials. Order well tests and septic checks early, book pest inspections where required, repair what is needed, and upload proof in one labeled packet. Request reinspection only after everything is complete, confirm access and utilities, and verify cleared conditions before signing to protect your closing date and your rate lock.
Citations Used
- U.S. Department of Veterans Affairs, VA Lenders Handbook portal
- U.S. Environmental Protection Agency, Drinking water basics
- U.S. Environmental Protection Agency, Termite information for consumers
- U.S. Department of Veterans Affairs, Purchase loan overview and appraisal context
- Electronic Code of Federal Regulations, Title 38 part 36
Frequently Asked Questions
Do VA rules require a septic inspection on every loan
VA requires sanitary sewage disposal and functioning systems. Lenders and local authorities often require formal septic inspections. If an appraiser observes backups or effluent, repairs and documented proof are required before the lender will clear conditions for closing.
What happens if a private well test fails potability standards
You must correct the cause, then retest until the report shows potability within accepted standards. Coordinate treatment timing with your lender and appraiser, then upload final passing results before requesting reinspection to avoid multiple return visits.
How do termite inspection requirements vary by location
Regions with higher risk often require inspections by default. If evidence appears anywhere, an inspection becomes mandatory. Any active infestation requires treatment, repair of damaged wood, and a clean clearance letter for underwriting to remove related conditions.
Can the seller refuse to pay for water, septic, or termite repairs
Payment is negotiable. VA does not assign who pays, it requires completion. If parties cannot agree, buyers may walk under contingencies, renegotiate price or credits, or arrange targeted escrows where the lender’s policy allows limited post closing completion.
Are community wells acceptable under VA guidelines
Yes, when capacity, maintenance, and cost sharing are documented. Provide the recorded agreement or operator letter to underwriting. The appraiser still verifies functional water at the property, and lenders clear conditions once documents show reliability and service stability.
Will a very old roof automatically fail the appraisal
No. Appraisers look for active leaks and reasonable serviceability. If there is water intrusion or clear failure, repairs are required. When age alone raises concern, lenders may ask for a contractor opinion confirming safe function for expected occupancy.
What proof should I upload for completed sanitation or pest corrections
Provide invoices, dated before and after photos, permits where required, and any lab results or clearance letters. Label files to match appraisal condition wording. A single complete packet helps underwriting remove conditions without repeated document requests.
When should I schedule reinspection after completing repairs
Only after every required item is finished and documented. Confirm utilities and access, then request reinspection for the earliest window. Partial completion often triggers a second return visit, added fees, and unnecessary schedule pressure near closing.
Does VA allow escrow for exterior or weather dependent work
Some lenders allow limited escrows for weather dependent exterior items. Safety, sanitation, or structural issues usually must be completed. Confirm policy early, document exact scope and deadline, and upload proof promptly to release funds and finalize clearance.
Can I use rental income to help qualify if I am buying a multi unit property
Yes, subject to lender rules. VA allows multi unit purchases with occupancy of one unit. Lenders often count a percentage of projected rents, require reserves, and verify that your residual income and debt ratios meet program expectations.
The VA Loan Network Editorial Team is comprised of dedicated mortgage specialists and financial writers committed to providing veterans and service members with accurate, up-to-date information on VA loan benefits, eligibility, and the home-buying process.
