No WDO report, no funding, no closing

Most lenders won't fund the loan. VA loans always require a WDO inspection and Section 1 clearance before closing. FHA loans require one when the appraiser flags signs of infestation. Even on conventional loans, many lenders and title companies won't move forward without it. Without the report, the transaction stalls. Escrow timelines slip, rate locks expire, and every party at the table starts paying for the delay. Getting the inspection scheduled early in the transaction is the easiest way to keep everything moving on time.

A standard termite inspection looks for termite activity and termite damage only. A WDO inspection covers all four categories of wood-destroying organisms recognized by California: subterranean termites, drywood termites, wood-boring beetles, and wood-destroying fungi including dry rot and moisture damage. The report uses the official California WDO form that lenders and escrow companies require. If you're buying, selling, or refinancing a home, a regular termite inspection won't satisfy the lender. You need the full WDO report. Visit our termite inspections page if you're looking for a standard inspection outside of a real estate transaction.

It's negotiable. In California there's no law requiring either the buyer or seller to pay for the WDO inspection or the Section 1 repairs. It comes down to what's written in the purchase agreement. Common practice in the Coachella Valley is for the seller to pay for the inspection and any Section 1 corrective work so the pest company can issue clearance before closing. Section 2 conditions are typically negotiated between the parties. Your real estate agent can advise on what's standard for your specific transaction.

Section 1 covers active infestations and visible damage that exists right now. This includes live termite activity, current fungus damage, active beetle infestation, and any wood that's already been compromised. Most lenders require all Section 1 items to be corrected and cleared before they'll fund the loan. Section 2 covers conditions that are likely to lead to future infestation or damage but haven't caused problems yet. Things like earth-to-wood contact, excessive moisture near the foundation, or faulty drainage grades. Section 2 items are negotiable between buyer and seller and don't typically block funding.

VA loans always require a WDO inspection and full Section 1 clearance before closing. No exceptions. FHA loans require one when the appraiser notes evidence of wood-destroying organisms during the property appraisal. Conventional loans don't always require it by rule, but many lenders and title companies in the Coachella Valley request one as a condition of funding, especially on older homes or properties with visible wood damage. Even when it's not technically required, most buyers order one for their own protection. The cost of the inspection is a fraction of what undiscovered damage would cost after closing.

Not necessarily. If the inspection comes back clear with no Section 1 or Section 2 findings, you're in good shape. If treatment is needed, Extermin8 handles the corrective work and issues clearance for your lender. Some homeowners choose to add ongoing pest control after closing, especially if the inspection revealed conditions that attract termites or rodents. That's completely optional. There's no contract, no required commitment, and no pressure to add services beyond the inspection and any needed repairs.