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A.  Requiring Reports and Treatment

Wood destroying insects and other organisms can cause serious problems in the wood structural components of a house and may go undetected for a long period of time.  FHA requires maximum assurance that a home is free of any infestation.  

Click here to determine if your location must comply.

1.  New Construction - The Department’s policy concerning the requirement for builder’s warranty against termite infestation in new homes is outlined in Mortgagee Letter 99-03.  All chemical soil treatments, bait systems, and chemical wood treatment must be approved by the Environmental Protection Agency (EPA) and applied in accordance with the EPA label instructions.  When these methods of protection are provided, the NPCA-99a form is to be completed in accordance with the Mortgagee Letter.  However, in some cases it is not feasible for a builder to arrange for soil treatment.  In this regard, the National CABO code allows a builder to utilize pressure treated wood as a measure of termite protection.  If pressure treated wood is used, however, it must be used in all framing members up to and including the top plate of the first floor level wall.  This includes the subfloor and floor joists of the first floor.  The use of pressure treated wood in only the sill plate is not acceptable.  When using pressure treated wood, the NPCA-99a form is not to be used.  In such cases, the builder must provide the lender with a letter stating that the house is protected from termites by the use of pressure treated wood.  The builder must also provide the home buyer with a one year warranty against termites similar to that required on the    NPCA-99a form.

New Construction = Proposed construction, under construction and existing less than 1 year old.

a.  For new construction in affected areas, one of the following must be used:

1.  Soil treatment, NPCA-99b, PLUS  one year guarantee NPCA-99a ; OR.


Bait system/Wood PLUS NPCA-99a ; OR


Any construction determined not requiring  termite protection by the CABO One and Two Family Dwelling Code (i.e., steel frame or concrete structures, or structures built of pressure treated or termite resistant wood with only minor interior wood trim.  Roof sheathing may be untreated wood).


The use of post-construction soil treatment where the chemicals are applied only  

    around the perimeter of the foundation is NOT acceptable in new construction.

  2.   Existing (over 1 year old) - For existing construction in affected areas, Form NPCA-1, Wood Destroying Insect Infestation Inspection Report, or a state mandated form,  will be required and will be valid for 90 days from the date of the inspection.  (Mortgagee Letter  95-33)

  3.  Condominiums - NPCA-1 is required on first floor units only.  If the unit is on the second floor or above, then a termite inspection is not required (to include ground floor attached and or detached garage, shed, and other structure that are apart of the subject)   INSPECTION IS REQUIRED

B.  Appraiser’s Observations - Appraisers are to observe all areas of the house and other structures/areas within the legal boundaries of the property that have potential for infestation by termites and other wood destroying organisms, including the bottoms of exterior doors and

Copy Printed: REVISION  I

   02/16/0227       Revision Effective:  05-30-00

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