VA Well, Septic and Termite Requirements

Private well: potability test required

If the home has a private well, the VA requires a water potability test — the water must be safe to drink. The lender typically orders the test through a qualified lab, and the results must meet local health authority standards or EPA standards for bacteria, nitrate, nitrite, and lead in some cases.

If the test fails, the well must be treated or repaired and re-tested before the loan can close. A failed well test is a real flag — it can delay closing by weeks if the well needs significant work. If you are buying a home with a private well, ask whether the well has been tested recently and budget time for the test in the appraisal window.

Connection to public water is the simplest path. Private wells are acceptable when the water is potable and the system is functional, but they add a test and a potential failure point to the process.

Septic system: function and inspection

If the home has a private septic system, the system must be functional. The VA may require a septic inspection — typically a function test or a full inspection — depending on the lender's requirements and the appraiser's observations. A septic system that is backing up, leaking, or non-functional is an MPR flag.

The appraiser notes the septic system's condition visually. If there is evidence of failure — surfacing effluent, a saturated drain field, a backup — the system must be repaired or replaced before closing. A functional system with no evidence of failure typically passes without a full inspection, though some lenders require one regardless.

As with wells, connection to public sewer is the simplest path. Private septic is acceptable when functional, but it adds a potential inspection and a potential failure point.

Termite and wood-destroying insect inspections

In many states, the VA requires a termite or wood-destroying insect (WDI) inspection on the property. The inspection is ordered by the lender or the buyer, performed by a licensed pest inspector, and the report notes whether there is evidence of active or prior infestation and any damage.

If active infestation is found, treatment is required before closing. If damage is found, repair may be required if it affects structural soundness. A treated infestation with no structural damage, or a prior infestation that has been treated and repaired, can pass.

The requirement varies by state. Some states require the inspection on every VA loan; others do not. The lender confirms the requirement for the property's location. If you are buying in a termite-prone region — much of the South and Southeast — expect the inspection and budget for it.

Who pays for the inspections and repairs

The VA does not dictate who pays for well tests, septic inspections, termite inspections, or repairs. That is a negotiation between buyer and seller, governed by the contract and the local market. In a buyer-favorable market, sellers often cover these; in a seller-favorable market, buyers may absorb them.

One specific VA rule: in some states, the termite inspection fee cannot be charged to the buyer — it is a non-allowable cost in those jurisdictions and must be paid by the seller or the lender. The lender confirms the rule for the property's state. Well tests and septic inspections are typically permissible buyer or seller costs.

Repairs required by the appraisal — a failed well, a septic failure, termite treatment — must be completed and re-inspected before closing. The repair cost is negotiated the same as any MPR repair: between buyer and seller, with the buyer's option to walk away under the amendatory clause if the repairs are too large.

Timing the tests and inspections

Well tests, septic inspections, and termite inspections run during the appraisal window — they are triggered by the appraisal's observation of the systems or by the state's requirement. Ordering them promptly at contract, in parallel with the appraisal, keeps them off the critical path.

A failed test or a required repair can extend the closing date, because the repair must be completed and the system re-tested before the loan can close. Build a small buffer into the closing date if the home has private well, private septic, or is in a termite-prone area. The buffer is cheap insurance against a delay.

What to ask before the offer

If the home has a private well or septic, ask the seller for any recent test results or inspection reports. A well tested in the last year with a passing result reduces the risk of a re-test failure. A septic system that has been pumped and inspected recently reduces the risk of a function flag.

If the home is in a termite-prone area, ask whether there is a current termite bond — a warranty or treatment contract — on the property. An active termite bond is both evidence of prior treatment and a value that transfers with the home. A home with no bond and no recent inspection in a termite area is a higher-risk file, and the inspection should be ordered early.

These systems do not disqualify a home from VA financing — they add steps. The key is knowing they are present, ordering the tests early, and negotiating the costs and any repairs in the contract rather than discovering them at the appraisal.