Continuing our series of commonly asked questions at closing, we asked Millie Simmons, our Closing Supervisor/Fulfillment Manager in Flower Mound, for advice on this question.

Millie, is the borrower permitted to pay a pest inspection fee on a VA loan, or is this considered a VA ‘non-allowable’ charge required to be covered by a Lender or Seller credit?    

Yes, in certain states – including Texas – the Veteran may pay the pest fee directly without being deducted from the lender’s 1% fee.  The same rule applies in California, Florida, and Louisiana.  Please see the VA state-by-state breakdown at this link.