Will a conventional loan decline a mortgage due to termites?
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The property is a short sale, and has some outdoor structural damage.
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Most conventional loans do not require a termite certificate. But if the appraiser happens to notice termites he may be able to require one. If the seller hides an infestation he can normally be sued for triple damages.
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I have not had a conventional lender require a termite inspection (here in Texas) for over 10 years.
No but they require that a professional exterminator treat the property. Seller pays for that.