Short answer
Not always. For FHA loans, HUD has the appraiser check the foundation and outside walls for signs of termites and other wood-destroying pests. If the appraiser sees evidence of an infestation, or learns of a past treatment, the appraisal is made subject to an inspection by a qualified pest control specialist, and the lender needs proof of any treatment. Many buyers add a pest check to their home inspection anyway.
What does FHA require?
HUD's Handbook 4000.1 says the lender must confirm an existing home is free of wood-destroying insects and organisms. The appraiser looks at the foundation and the perimeter of the buildings, though not at the level of a pest control specialist. When there's evidence or notice of an infestation, including a prior treatment, the appraiser marks it in the report and makes the appraisal subject to a pest inspection. The lender then needs that inspection and proof of any required treatment before closing.
HUD also says soil poisoning isn't an acceptable treatment unless the lender is assured it won't endanger the water supply, which matters for homes on private wells. See well water tests and your mortgage.
What about conventional loans?
For loans sold to Fannie Mae, if the appraisal shows evidence of wood-boring insects, dampness or abnormal settlement, the lender needs proof the problem was fixed or a professional inspection report saying it doesn't threaten the structure (Selling Guide B4-1.3-06). See appraisal condition ratings.
Why get one even if the loan doesn't require it?
Damage from termites, carpenter ants or rot can hide behind finished walls and under decks and porches. A pest inspection during your inspection period lets you ask for treatment, repairs or a credit before you're committed. Ask your home inspector whether they offer a wood-destroying insect check or can recommend a licensed specialist. See do you need a home inspection.
What if the inspection finds damage?
Treatment and repairs are usually negotiated with the seller. For an FHA loan, damage that affects the home's safety or soundness has to be fixed, and the lender decides which repairs are required. See FHA appraisal repairs and renovation loans for bigger fixes.
Sources
- HUD Single Family Housing Policy Handbook 4000.1, Update 18 (August 2026), Termites and Wood Destroying Insects/Organisms
- Fannie Mae Selling Guide, B4-1.3-06, Property Condition and Quality of Construction of the Improvements (06/04/2025)
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.