Does your lender require a termite pre-treatment on a new home in Arizona?

FHA loans

HUD's FHA Single Family Housing Policy Handbook 4000.1 lists form HUD-NPMA-99-A, Subterranean Termite Protection Builder's Guarantee, as required for all new construction, unless the property is in a county listed as not required on HUD's Termite Treatment Exception Areas list. Arizona isn't on that list, so the requirement applies in every Arizona county, including Graham, Cochise, Navajo and Apache.

If the home is treated with a soil termiticide, a bait system, a field-applied wood treatment or a physical barrier, form HUD-NPMA-99-B, New Construction Subterranean Termite Service Record, is required too. The handbook also says the lender must reject a post-construction soil treatment when the termiticide is applied only around the perimeter of the foundation.

There are exceptions. The handbook says no treatment is needed for a building made of steel, masonry or concrete with only minor interior wood trim and roof sheathing; the builder notes that on the form. The 99-A form also lets the builder certify that pressure-treated lumber was used instead of a pest control company treatment.

Under the 99-A guarantee, if subterranean termites show up within one year of closing, the builder must make sure a licensed pest control company treats the structure, and must repair termite damage that occurs in that year.

VA loans

VA's Local Requirements page lists Arizona among the states where wood-destroying insect information is required statewide before VA issues its Notice of Value.

The HUD-NPMA-99-A and 99-B forms cover both programs. They're used on new construction when termite prevention is required by the lender, FHA or VA, and the lender puts a copy in the VA loan package or the HUD case binder. Ask your lender exactly which forms it needs.

USDA loans

USDA's guaranteed loan handbook (HB-1-3555, Chapter 12) says termite and pest inspections are not required unless the lender, appraiser, inspector or state law requires one to confirm the property is free of active infestation. We didn't find a separate USDA pre-treatment rule for new homes, so ask your lender.

Conventional loans (Fannie Mae and Freddie Mac)

Fannie Mae's Selling Guide handles termites through the appraisal: if it shows evidence of infestation, such as wood-boring insects, the lender must show the condition was corrected or get a professional report that it doesn't threaten the structure. Freddie Mac's quality-control checklist asks for inspection reports on identified items such as wood-boring or termite issues. Neither sets a pre-treatment rule for new construction that we found.

Individual lenders can still set their own conditions, so ask yours.

Your local building code may require it too

Lender rules aren't the only requirement. The International Residential Code calls for termite protection in areas a local building department marks as subject to termite damage in its design criteria table (Table R301.2). The code allows a soil termiticide, a bait system, treated or naturally termite-resistant wood, physical barriers or steel framing. That's Section R305 in the 2024 edition and Section R318 in earlier editions.

Whether it applies to you depends on the code your city, town or county has adopted and what it lists in that table. The City of Safford, for example, follows the 2024 code and lists termite damage risk as 'moderate to heavy' in its posted design criteria. Ask your local building department or building inspector what your plans need.

Source: International Code Council: 2024 International Residential Code, Chapter 3, City of Safford Building/Development Permits & Codes

Paying cash or building with cash

No loan means no lender requirement, but your local building code may still call for termite protection, so check with your building department. Either way, a pre-treatment can only go under the slab before it's poured. As University of Arizona Cooperative Extension puts it, 'Ideally, the time to protect a house against termites is before it's built.'

A pre-treatment also brings Arizona's protections with it: the final grade treatment within 18 months (R3-8-308(F)(1)) and, if subterranean termites show up within three years, a retreatment of the affected area by the company that did the pretreatment (R3-8-309(C)). We strongly recommend a pre-treatment on cash builds too.

What to ask your lender

Ask before the slab is poured: Does my loan require a termite pre-treatment or a builder's termite guarantee? Which forms do you need (HUD-NPMA-99-A, HUD-NPMA-99-B)? Will you accept pressure-treated lumber or masonry construction instead? When do you need the paperwork?

Then use our pre-treatment checklist to compare companies, and see the final grade guide.

Frequently asked

Related

• Termite pre-treatment
• Building a home in Arizona: the first 10 steps
• Do you need a termite pre-treatment in the White Mountains?
• What should I ask a termite pre-treatment company before I hire them?
• What is a termite final grade treatment, and when does it happen?
• When is termite season in Arizona?
• How do I know if I have subterranean termites?
• What are termite mud tubes?

Sources

• HUD: FHA Single Family Housing Policy Handbook 4000.1
• HUD: Termite Treatment Exception Areas
• Form HUD-NPMA-99-A, Subterranean Termite Protection Builder's Guarantee
• Form HUD-NPMA-99-B, New Construction Subterranean Termite Service Record
• VA Home Loans: Local Requirements (wood-destroying insect information)
• USDA HB-1-3555, Chapter 12: Property and Appraisal Requirements
• Fannie Mae Selling Guide B4-1.3-06: Property Condition and Quality of Construction
• Freddie Mac: QC Review Documentation Checklist
• University of Arizona Cooperative Extension: Termite Management for Homeowners (AZ1356)
• Ariz. Admin. Code R3-8-308
• Ariz. Admin. Code R3-8-309
• International Code Council: 2024 International Residential Code, Chapter 3
• City of Safford Building/Development Permits & Codes