You are days from closing on a house when your lender drops a new condition: a wood-destroying-insect report on Form NPMA-33. Or you run a pest control company and agents keep asking whether you can "do the termite letter" — and you are leaving money on the table every time you say no. Either way, one two-page form stands between you and a closed transaction. Termites cause an estimated $6.8 billion in U.S. property damage every year, according to the National Pest Management Association, and standard homeowners insurance almost never covers the repairs. That is why lenders insist on this inspection — and why understanding the form pays whether you are buying the house or building the business that inspects it.
What the NPMA-33 Is (and Isn't)
The NPMA-33 is the standardized Wood Destroying Insect Inspection Report published by the National Pest Management Association. In real estate transactions it goes by a simpler name: the termite letter, or termite closing letter. When a lender, buyer, or seller asks for proof that a property has been checked for wood-destroying insects, this is the document they mean.
Three facts about the form surprise most people:
It is copyrighted and controlled. The NPMA-33 cannot be reproduced or distributed without the written consent of the National Pest Management Association, and permission is not transferable. In practice, pest control companies get the form either on paper through NPMA-authorized channels or as a digital form inside field-service software that NPMA has licensed to reproduce it. You cannot just download a free PDF and start issuing reports — a company issuing reports on an unauthorized copy is misrepresenting the inspection from page one.
It covers insects only — four kinds. The report documents visible evidence of, or damage from, wood-destroying insects, which the form defines as subterranean and drywood termites, carpenter ants, carpenter bees, and reinfesting wood-boring beetles. That word "reinfesting" matters: old-house borers and powderpost beetles that can reinfest seasoned wood count, while beetles that attack only green lumber and never reinfest do not. Wood rot, fungi, mold, and moisture damage are explicitly outside the form's scope; where those organisms must be reported, some states use a separate wood-destroying-organism attachment alongside the NPMA-33.
It is a snapshot, not a warranty. The report describes what the inspector saw on the date of inspection, in the areas that were accessible that day. It does not guarantee the structure is free of insects, does not predict the future, and does not cover areas the inspector could not reach. Page two of the current form spells out these limitations in consumer-facing language — read it before you treat a clean report as a clean bill of health.
What WDI Inspectors Actually Document
A WDI inspection is a visual inspection of readily accessible areas. The inspector walks the structure — basement, crawlspace, living areas, attic, garage, exterior, porches — looking for specific evidence, then records the findings in the form's five sections.
Section I: General information
Property address, the buyer and seller names, the inspection company and address, the inspector's name and signature, the date of inspection, and the company's pest control business license number. The license number is not decoration: it ties the report to a credentialed company, and lenders and state regulators can verify it. An NPMA-33 without a license number is a red flag.
Section II: Findings — visible evidence, damage, and previous infestation
This is the heart of the report. For the structure and any attachments (decks, porches, additions, garages), the inspector answers whether visible evidence of wood-destroying insects was found, whether live insects were observed, whether damage was found, and whether there is evidence of previous infestation or previous treatment.
Visible evidence the inspector looks for includes:
- Mud shelter tubes on foundation walls, piers, and sill plates — the protected highways subterranean termites build between soil and wood
- Exit and bore holes in wood surfaces, sometimes with fine powder (frass) nearby, pointing to beetles or drywood termites
- Damaged, hollowed, or blistered wood — inspector probes suspect trim, sills, and framing with a screwdriver or awl
- Swarmers or discarded wings on windowsills and around light fixtures, a sign of an active nearby colony
- Carpenter ant frass — coarse sawdust-like shavings pushed out of nest galleries, often with dead ants mixed in
- Carpenter bee holes — smooth, round half-inch openings in fascia boards, eaves, and decks
A revised version of the form replaced the old "defects" wording with "wood-destroying insect damage" and removed the old yes-or-no question about whether the structure appeared to have been treated, so the findings section now focuses squarely on what the inspector can see and verify.
Section III: Treatment recommendations
When the inspector finds active infestation or damage, this section records what treatment is recommended — and, importantly, the scope of any treatment already performed is documented separately so the next inspector and the lender can see the history. Lenders typically condition the loan on completed treatment plus a clearance letter when this section is non-blank, so precision here directly affects whether a closing stays on schedule.
Section IV: Obstructions and inaccessible areas
No inspector dismantles your house. The form states plainly that no inspection was made in areas requiring the breaking apart, dismantling, or removal of any object — moldings, floor coverings, wall coverings, siding, fixed ceilings, insulation, furniture, appliances, or personal possessions — nor in areas obstructed or physically inaccessible on the inspection date. The inspector lists each obstructed area or uses the form's optional key, covering basement, crawlspace, main level, attic, garage, exterior, porch, additions, and anything else.
Two practical notes. First, crawlspace access has a concrete standard: guidance for the form calls for at least 24 inches of clearance from the crawl floor to the bottom of the floor joists before the space counts as accessible. Second, the revised form added spray foam insulation and equipment to the obstruction list — spray foam on a substructure or in an attic can make inspection for termite evidence genuinely impossible, and the form now says so out loud. If you are a buyer, read this section as carefully as the findings: a clean report with half the structure listed as inaccessible is a narrower assurance than it looks.
Section V: Additional comments and attachments
Photos, diagrams, moisture-meter readings, and explanatory notes live here, and they are an integral part of the report — not an appendix the lender can ignore. Good inspectors use this section aggressively: a photo of an inaccessible crawlspace hatch blocked by stored boxes explains Section IV better than a code number, and a diagram showing where a mud tube was found tells the treating technician exactly where to start.
When Lenders Require It
Not every loan needs an NPMA-33, but in much of the country one is effectively standard. The rules differ by loan type:
VA loans. The strictest regime. For purchase loans and cash-out refinances on properties in moderate-to-heavy termite zones — which covers most of the country — VA requires a WDI inspection reported on the NPMA-33. Updated rules effective July 2025 reaffirmed the requirement and the form. In low-risk zones the inspection is generally required only when the appraiser flags evidence. Miss this in a termite state and the appraisal stalls until the report arrives.
FHA loans. FHA requires a WDI report when the appraiser observes evidence of active infestation, when a report is customary to the area, or when state or local law mandates it. In practice, appraisers in termite-prone regions flag the requirement routinely, so FHA buyers in the South, Mid-Atlantic, and much of the Midwest should expect it.
Conventional and USDA loans. The lender decides. Most conventional lenders require a termite inspection in higher-risk states or delegate the call to the appraiser; USDA follows a similar appraiser-triggered pattern. Purchase contracts often settle the question first: many state-standard agreements include a WDI inspection paragraph naming who orders and pays for it.
Timing and validity. Lenders typically want the inspection dated within 30 to 90 days of closing — 90 days is the common ceiling, and some lenders hold to 60 or 30. An inspection ordered too early in a long transaction can expire before closing, forcing (and billing) a re-inspection. Order it after the appraisal is scheduled, not before the offer is accepted.
Who pays. It is negotiable and usually set in the purchase contract; buyers most often pay for the inspection itself, while sellers typically pay for any required treatment and damage repair, sometimes capped at a percentage of the price. VA historically restricted buyers from paying for the inspection in certain states, but current policy allows it — confirm with the lender rather than relying on old advice.
What happens when the report is not clean. The lender conditions the loan on treatment by a licensed company and a clearance letter or updated report showing the infestation is resolved. Structural damage gets a contractor's repair estimate and sometimes an engineer's letter. None of this kills the deal by itself, but each step adds days — which is why experienced agents schedule the WDI inspection the same week as the general home inspection.
Mistakes That Cost Buyers and Sellers Real Money
- Treating the general home inspection as a substitute. Home inspectors in most states cannot render a WDI opinion; many are legally limited to noting conducive conditions and referring the insect question to a licensed structural pest inspector. A general inspection never satisfies a lender's NPMA-33 condition.
- Reading a clean report as a warranty. The report covers visible evidence in accessible areas on one date. Subterranean termites can enter through a crack that was behind stored boxes on inspection day. Pair the report with a treatment warranty or termite bond (see below) rather than confidence.
- Skipping Section IV. Obstructed crawlspace, insulation-blocked attic, garage packed wall to wall: every inaccessible area is a gap in the inspection. Buyers should ask the seller to clear access and have the inspector return, rather than accepting the gap.
- Letting the report expire. A 100-day-old NPMA-33 at closing is scrap paper to most lenders. Calendar the lender's validity window from the inspection date.
- Undocumented DIY treatment. Spraying a hardware-store product on a mud tube destroys the evidence pattern a professional needs and produces no paper trail a lender accepts. If you find evidence before listing, hire the treatment and keep the report — it becomes a selling point instead of a closing-day surprise.
How to Build the WDI Inspection Business
If you run or are starting a pest control company, the NPMA-33 is not paperwork — it is a product line with lender-mandated demand. Here is how operators turn the form into revenue.
Get licensed first; the form follows the license
Every state requires structural pest control licensing, and WDI inspections for real estate transactions generally require the termite category or a dedicated WDIR certification — in some states only a licensed termite operator or certified WDIR technician may perform the inspection at all. Requirements typically combine classroom hours, a state exam, insurance minimums, and a business license for the company. Start with your state department of agriculture (the usual regulator), price the full credentialing path before you promise agents a start date, and never issue reports while an application is pending.
Secure a legitimate supply of the form
Because the form is copyrighted, you need an authorized source: paper forms through NPMA-approved channels or a digital NPMA-33 inside licensed inspection software. The digital route is now the default for transaction work — it auto-populates client data, captures signatures electronically, attaches Section V photos, and delivers a legible report the same day. Whatever you choose, verify the license: issuing reports on an unauthorized reproduction undermines the credibility the credential is supposed to confer.
Price the report, not just the visit
Market pricing clusters in consistent bands: a WDI inspection added to a home inspection runs about $75 to $150; a standalone inspection with a formal transaction report typically lands between $100 and $250 depending on property size, urgency, and market; and many companies offer a free general termite look as a lead generator while charging for the written NPMA-33 the lender requires. Price on value, not time: the report carries your license number and professional liability, clears a six-figure loan condition, and often must be turned around in 24 to 48 hours. Same-day and large-property surcharges are standard — publish them rather than negotiating per job.
Turn agents and lenders into a referral engine
Transaction inspections are a B2B2C business: the buyer pays, but the agent chooses. Operators who win this channel do a short list of things relentlessly — introduce themselves to every brokerage office within the service area, deliver reports the same day with photos and plain-English summaries agents can forward to clients, answer the phone during option and inspection periods, and show up on time. Lender panels and relocation-company vendor lists are the second referral tier and reward the same reliability. Track revenue per referral source monthly; a handful of productive agents usually outperform all other marketing combined.
Build recurring revenue behind the one-time report
The inspection is the acquisition event; the bond is the business. Annual termite bonds and warranties — yearly re-inspections with retreatment guarantees, typically a few hundred dollars a year — convert a $150 transaction job into a multi-year relationship. Bait-station monitoring contracts, annual WDI re-inspections for past clients, and general pest control cross-sells stack on the same customer record. Structure the offer at the inspection: a clean report plus a bond proposal beats a clean report alone every time.
Document like you will be deposed
WDI reports carry liability — a missed infestation can mean a claim against the company. Photograph every elevation, every area of concern, and every inaccessible area; keep the signed report, photos, and notes for at least your state's retention period (many operators keep them indefinitely, since claims can surface years later); carry errors-and-omissions coverage sized to the transaction values you touch; and train every technician to write Section IV completely rather than optimistically. Thorough documentation is also a growth asset: detailed reports with photos are exactly what top agents forward to their colleagues.
Know your numbers per job
Transaction inspection work looks simple until re-inspections, expired reports, drive time, and bond callbacks blur the margins. Track revenue and direct cost per inspection, callback rate, report turnaround time, and bond renewal rate. That per-job clarity is also what lets you price confidently: if your true all-in cost per report is $85, a $125 price with a 40 percent bond attach rate is a very different business than a $99 price with none.
Keep Your Inspection Business Books Clean
Inspection revenue has quirks that punish sloppy books: prepaid annual bonds are deferred revenue until each inspection is performed, re-inspection fees and treatment upsells need separate tracking to show true job margins, and technician drive time has to land somewhere or your profitable route is secretly your worst one. Recording each inspection, bond payment, and callback as its own transaction — with the bond liability recognized month by month — is what turns a busy schedule into financial statements a lender will read. If you want the mechanics of small-business accruals, job costing, and deferred revenue in one place, the guides in /docs/ walk through each pattern with plain-text examples.
Simplify Your Financial Management
As you grow an inspection business — or work through the costs of buying a termite-prone property — maintaining clear financial records is essential. Beancount.io provides plain-text accounting that gives you complete transparency and control over your financial data — no black boxes, no vendor lock-in. Get started for free and see why developers and finance professionals are switching to plain-text accounting.
