Termite and Pest Inspections for Michigan Home Loans
What the NPMA-33 wood destroying insect report covers, when FHA and VA loans require one, and what our inspectors look for
A termite inspection for a Michigan home loan is a wood destroying insect (WDI) inspection, reported on the NPMA-33, the National Pest Management Association form that lenders ask for. A loan insured by the Federal Housing Administration (FHA) requires one when the appraiser sees evidence of infestation or a past treatment, and a Department of Veterans Affairs (VA) loan does not require one in Michigan unless the VA appraiser notes a problem. Michigan Property Inspections performs termite and pest inspections from $200 when added to a home inspection, with a same-day digital report.
In Michigan the inspection is about three insects: subterranean termites, carpenter ants and powderpost beetles. Termites get the headlines, but Michigan State University (MSU) entomologists describe carpenter ants as one of the largest and most common ants in the state, and powderpost beetles as second only to termites in their ability to destroy wood in structures. The Environmental Protection Agency (EPA) says termites cause billions of dollars in structural damage every year.
What does a WDI inspection on the NPMA-33 form cover?
The NPMA-33 is a visual inspection of the readily accessible areas of the house, including attics and crawlspaces that permit entry, with probing and sounding of unobstructed wood to find visual evidence of wood destroying insects. The form defines those insects as termites, carpenter ants, carpenter bees and reinfesting wood boring beetles. Mold, mildew and other non-insect organisms are not included.
The report records what was found (no visible evidence, live or dead insects, frass, shelter tubes, exit holes or damage), signs of a previous treatment, and which areas were obstructed or inaccessible. A crawlspace with less than 24 inches of clearance under the joists can be listed as inaccessible. The form states that the report describes the structure on the date of inspection, is not a guarantee against hidden or future infestation, and is invalid for a mortgage or property transfer if not used within 90 days. Michigan is not one of the states with its own mandated wood infestation form, so the NPMA-33 is the report Michigan lenders expect.
Our inspectors follow that scope: foundation, sill plates, joists, basement, crawlspace, attic, exterior and porches, looking for live insects, damage, past treatment and the conditions that invite infestation, such as wood touching soil.
Does an FHA loan require a termite inspection in Michigan?
Only when something triggers it. The Department of Housing and Urban Development (HUD) Handbook 4000.1 requires the FHA appraiser to observe the foundation and perimeter of the buildings for evidence of wood destroying pests, though not at the level of a pest control specialist. If there is evidence or notification of infestation, including a prior treatment, the appraiser must mark the evidence of infestation box and make the appraisal subject to inspection by a qualified pest control specialist. The lender must then obtain that inspection, plus evidence of any required treatment, and keep the NPMA-33 in the loan file. A lender can also ask for one on its own.
New construction is different. HUD requires Form HUD-NPMA-99-A, the Subterranean Termite Protection Builder's Guarantee, on every new FHA-financed house unless the county is on HUD's Termite Treatment Exception Areas list. In Michigan that list excuses 46 counties, mostly the Upper Peninsula and the northern Lower Peninsula, plus Bay, Midland, Saginaw, Sanilac and Tuscola. It requires termite protection in every other county, including Genesee, Oakland, Wayne, Macomb, Washtenaw, Livingston, Ingham, Jackson, Lapeer, St. Clair, Shiawassee, Clinton and Gratiot.
Does a VA loan require a termite inspection in Michigan?
No, unless the appraiser flags it. The VA's Local Requirements page for appraisers, updated July 11, 2025, lists only the states that require a WDI inspection and says that in any state not listed, an inspection is not required unless specific issues are noted in the VA appraisal report. Michigan is not on the list. Ohio, Indiana and Illinois are, for the entire state.
When the VA appraiser does note evidence, the Notice of Value is conditioned on a WDI report, and repairs it identifies must be completed before the loan is guaranteed. VA Circular 26-22-11, issued June 15, 2022, allows the Veteran to be charged for the WDI inspection when the Notice of Value requires it and to pay for required repairs. The VA encourages Veterans to negotiate those costs with the seller. Conventional loans carry no federal termite rule, so the inspection is the buyer's call.
Which wood destroying insects do inspectors find in Michigan homes?
Subterranean termites live in the soil and travel to wood through mud tubes about the diameter of a pencil over foundation walls, piers, sill plates and joists. Termite-damaged wood is hollowed out along the grain with dried mud lining the galleries, and swarmers emerging next to the foundation in spring, triggered by warmer temperatures and rain, are a strong sign the house is infested. Termites have straight antennae, a thick waist and wings of equal size; flying ants have elbowed antennae, a pinched waist and longer front wings.
Carpenter ants, three-eighths to half an inch long, nest in wood but do not eat it. An entomologist with MSU Plant and Pest Diagnostics says they prefer an enclosed space that stays wet or damp, and are drawn to moisture around windows, doors, showers, bathtubs, dishwashers, leaky pipes and drains, and under leaky roof shingles or roof vents. Their nest debris, coarse sawdust and dead ants, collects in the basement beneath the nest. The fix starts with repairs that keep the wood dry.
Powderpost beetle larvae tunnel inside wood, and the adults leave small round exit holes, about one-sixteenth to one-eighth of an inch across, with fine flour-like powder beneath them. One group attacks hardwood products such as oak flooring, paneling, molding, window and door frames and furniture; another attacks softwood too and can seriously damage beams and joists, worst in damp crawlspaces, basements, garages and unheated outbuildings. Fresh powder the color of newly sawn wood means an active infestation; yellowed, caked powder usually means old damage. MSU recommends keeping wood below 20 percent moisture content.
How much does a termite inspection cost in Michigan, and when should you schedule it?
Our termite and pest inspection is from $200 when added to a home inspection, and home inspections are from $425. Both reports are delivered digitally the same day. Because the NPMA-33 expires for lending purposes after 90 days, book it with the home inspection, inside the 90 days before closing. We test; we never repair or remediate, so nothing in the report is a sales pitch.
If the inspection finds termites, the NPMA-33 notes that FHA and VA require treatment of any active subterranean termite infestation, and the EPA says that in most cases termiticide application is a job for a trained pest management professional. Our report gives you and your agent the documentation to negotiate who pays.
