Do you need a clear termite report to close escrow?
NO.
Termite reports and clearance are not a condition required by Fannie Mae or Freddie Mac. Some banks require it because it makes them more comfortable.
Beware of anyone who says your seller or buyer HAS to termite.
We recently had a client whose seller couldn’t do the termite work while living in the house, so everyone agreed to do it after the close of escrow. Win-win for everyone.
However, do be aware that the appraiser can say that there is evidence of dry rot. If that’s the case, the seller will have to fix it as a condition of the appraisal. But, we can also get around that one too, ask me how.
Having a lender who has the experience of several markets helps you find solutions. I am that partner!
And YES we still have interest only loans!