Do You Need a Termite Letter to Sell a House in Arkansas?

Do you need a termite letter to sell a house in Arkansas?

If your buyer is using an FHA or VA loan, yes — a termite clearance letter is effectively required, and in Arkansas that letter must come with a signed pest control contract guaranteeing the property for at least twelve months. Conventional loans usually don't require one unless the appraiser flags a problem. By long-standing custom in Central Arkansas, the seller orders and pays for it, and treatment costs typically run $350 to $750 when something is found.

By Amanda Galbraith | July 19, 2026

Here's the phone call I get more often than almost any other: a seller is three weeks from closing, everything's been smooth, and then the lender asks for the termite letter. Nobody mentioned it at listing. Nobody budgeted for it. And now there's a line item they didn't plan for and a deadline they didn't know existed.

It's not a crisis. But it catches people off guard, and in Central Arkansas it catches people off guard constantly.

Let me walk you through exactly how this works so it doesn't surprise you.

What a Termite Letter Actually Is

The official name is the NPMA-33 — a standardized form used nationally for wood-destroying insect inspections. You'll hear it called a lot of things:

• Termite letter
• Termite clearance letter
• WDI report (wood-destroying insect)
• WDO report (wood-destroying organism)

They all mean the same document. A licensed pest control operator inspects the property, then reports whether there's evidence of active infestation, prior infestation, prior treatment, or visible damage.

Here's the part that trips people up: it is not a home inspection. Your general home inspector does not issue this. It's a separate visit, from a separate licensed company, producing a separate document. If you've already paid for a home inspection in Central Arkansas, that doesn't cover you here.

And Arkansas is stricter than most states about what the letter has to include.

Under Arkansas rules, a clearance letter has to be accompanied by a signed contract providing a guarantee of at least one year, plus a graph or diagram showing the location of any active or inactive infestation and any visible damage. In a lot of states you can get a bare inspection report and be done. Not here. The twelve-month contract is part of the deal.

That distinction matters, because it changes the price. You're not buying a $100 inspection — you're buying an inspection plus a year of coverage.

When It's Required, and When It Isn't

This is where sellers get the most conflicting information, so let's be precise.

FHA and VA loans — plan on it. These loan programs almost always require the inspection and a clean clearance letter before the lender will fund. The property has to be free of active infestation. If your buyer is using VA financing, this is close to automatic.

Conventional loans — usually not required. But "usually" is doing real work in that sentence. If the appraiser notes conditions that could invite termites — wood-to-soil contact, moisture in a crawlspace, visible damage — the lender will turn around and ask for a WDI inspection. Central Arkansas has plenty of older homes with crawlspaces and plenty of humidity, so this happens more here than you'd think.

USDA loans — common in the rural areas around the Little Rock metro, and these frequently require it too. If you're selling outside the city limits, assume you'll need one.

Cash buyers — no lender, no requirement. A smart cash buyer may still ask for one, and honestly, they should.

Since Arkansas doesn't have a state law dictating who pays, the purchase contract decides it. By long tradition across Arkansas, the seller orders and pays for the letter. That's the default expectation, not a legal mandate — which means it's negotiable, and in a market where buyers have more leverage, most sellers just absorb it rather than fight over $400.

What It Costs and What Happens If Termites Show Up

The inspection itself is modest. The real number depends on what the inspector finds. It's one of the smaller items on your seller closing cost sheet, but it's the one most likely to be a surprise.

• Clean inspection with the required 12-month contract: typically a few hundred dollars, since Arkansas requires the guarantee to come with it
• Treatment when there's an active infestation: commonly $350 to $750 before sales tax, though this varies significantly by home size, foundation type, and severity
• Bond transfer to the new owner: roughly $25 to $250 depending on the company
• Annual renewal thereafter: generally $200 to $400 per year

Now — what if the letter comes back dirty?

First, breathe. An active infestation is not a deal-killer in Arkansas. This is termite country. Pest control companies here treat homes every single day, and the vast majority of findings are handled with a treatment and a bond, not a demolition crew.

The sequence usually goes: the inspector finds evidence, you get it treated, the company re-inspects and issues a clean letter with the twelve-month contract, and closing proceeds. If the treatment is straightforward, this adds days — not weeks.

Where it gets more complicated is structural damage. If there's visible damage to load-bearing wood, an FHA or VA lender will typically want repairs completed and documented before funding. That's a bigger conversation, and it's the one scenario where the timeline genuinely slips.

There's one more thing you need to know, and it's the part with actual legal weight.

The Arkansas Seller's Property Disclosure asks directly about wood-destroying organisms — whether you know of active or previous infestation, past damage, or prior treatment. Arkansas largely operates under caveat emptor, but that doctrine does not protect a seller who conceals something they knew about. If you had termites treated six years ago and you don't disclose it, and the buyer finds the old bond paperwork in a drawer after closing, you have a problem that costs far more than a termite letter.

Disclose it. Prior treatment with a documented bond is a selling point, not a liability. It tells a buyer the house has been monitored.

Timing: The Part That Actually Causes Delays

A termite letter has a shelf life. Depending on the loan program and lender, reports commonly run valid for 90 days on FHA and VA loans and longer on conventional and USDA — but the clock starts on the inspection date, not the day the letter was typed.

That's the trap. If you order the inspection the week you list, and the house takes 100 days to sell — which is entirely normal in Central Arkansas right now, where homes are averaging well over three months on market — your letter is stale by the time you get to the closing table. You'll pay for a re-inspection.

Here's what I tell my sellers: don't order it at listing, and don't order it the week of closing. Order it once you're under contract and you know the buyer's loan type, with enough runway that a treatment wouldn't blow your closing date. Usually that's shortly after the inspection period ends.

If you're a buyer, ask about the termite letter early. Ask whether there's an existing bond on the property and whether it's transferable — inheriting an active bond is genuinely valuable, and it's the kind of detail that gets lost between agents if nobody raises it.

This is the sort of thing that never appears in a listing agreement and never comes up in a Zillow search, but it shows up in every real closing — right alongside everything else you'll expect on closing day in Central Arkansas. Knowing the sequence before you're in it is the whole difference between a $400 line item and a two-week delay.

Frequently Asked Questions

Is a termite inspection required by law in Arkansas?

No. Arkansas has no law requiring a termite inspection to sell a home. The requirement comes from the lender — most commonly FHA, VA, and USDA loan programs. What Arkansas does regulate is the content of the letter itself, requiring a signed twelve-month guarantee contract and a diagram of any findings.

Who pays for the termite letter in Arkansas — buyer or seller?

The purchase contract decides, not state law. By long-standing custom across Arkansas, the seller orders and pays for it. It's fully negotiable, and in a buyer-friendly market most sellers simply cover it rather than risk friction over a few hundred dollars.

Does a conventional loan require a termite inspection?

Usually not. Conventional lenders typically only require a WDI inspection if the appraiser flags conditions suggesting a problem — wood-to-soil contact, crawlspace moisture, or visible damage. Given the age and construction of a lot of Central Arkansas housing stock, this happens more often than sellers expect.

Can I still sell my house if it has termites?

Yes. Active termites are not a deal-killer here. The standard path is treatment, re-inspection, a clean clearance letter with the required twelve-month contract, and then closing. The complication is structural damage to load-bearing wood, which FHA and VA lenders will generally want repaired and documented before funding.

Do I have to disclose past termite treatment when selling in Arkansas?

Yes, if you know about it. The Arkansas Seller's Property Disclosure asks specifically about wood-destroying organisms, including previous infestation, damage, and treatment. Concealing known history exposes you to real liability — and a documented, transferable bond is usually a positive for buyers anyway.

How long is a termite letter good for?

The validity window depends on the loan program and the lender, commonly around 90 days for FHA and VA financing and longer for conventional and USDA. The clock starts on the inspection date. If your closing slips past that window, you'll need a re-inspection.

A termite letter is a small line item that causes an outsized number of last-minute closing scrambles in Central Arkansas — almost always because nobody brought it up until the lender did. Order it at the right moment, disclose what you know, and it's a non-event.

If you're getting ready to list in Maumelle, Little Rock, North Little Rock, Sherwood, Bryant, or Benton and you want to know what's actually going to be asked of you before it's asked, download the free Central Arkansas Home Sellers Guide. It walks through the full sequence — inspections, disclosures, timelines, and costs — so nothing lands on you at the closing table.

About Amanda Galbraith

Amanda Galbraith is a residential real estate agent serving the greater Little Rock area. She specializes in helping first-time sellers navigate the process from pricing to closing, as well as investors looking to increase their portfolio. Connect with Amanda at www.amandagalbraith.ar-property.com.

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