The WDI Report in San Antonio: Termites, VA Buyers, and the Finding That Delays Closing

If your buyer is using a VA loan, a Wood-Destroying Insect (WDI) report is coming. It is not optional, the seller almost always pays for it, and in Bexar County it will find something at least half the time — old treatment records, mud tubes in a garage corner, moisture in a crawlspace, or evidence of Formosan subterranean termites, which are established across the south and east sides of San Antonio.

The report itself is cheap and quick. What causes delays is what the inspector writes in Section II and Section III, and how the lender and buyer react to it. Sellers who understand the form before it is ordered save a week of back-and-forth and, more often, save the deal.

What the WDI report actually is

The WDI is a standardized inspection performed by a Texas Department of Agriculture-licensed pest professional (TDA took over the old Texas Structural Pest Control Service). The output is the Official Texas Wood Destroying Insect Report — a one-page form with four sections:

• Section I — inspector, company, license, and property info.
• Section II — visible evidence of wood-destroying insects (live activity, dead insects, damage, mud tubes, exit holes).
• Section III — conditions conducive to infestation (wood-to-ground contact, moisture, debris under the deck, form boards left in a slab pour).
• Section IV — treatment history and any current warranty or bond.

WDIs cover termites (subterranean, drywood, Formosan), carpenter ants, carpenter bees, and wood-boring beetles. In Bexar County the finding is almost always subterranean termites, live or historic.

When it is required, and who pays

VA loans

VA loans require a WDI in Texas — no exceptions. VA policy also prohibits the veteran from paying for it, so the seller (or the seller's agent through a concession) picks up the fee. Expect $75–$150 for a standard single-family inspection. The report must be dated within 90 days of closing.

FHA loans

FHA does not automatically require a WDI, but the appraiser can trigger one by noting evidence of infestation or conducive conditions on the appraisal. In practice, a large share of FHA files in San Antonio end up with a WDI requirement because so much of the older housing stock inside Loop 410 shows something.

Conventional loans

Rarely required by the lender. Buyers still ask for one during the option period, and a savvy buyer's agent will insist. If the buyer requests it and it is not a VA deal, the buyer typically pays, though this is negotiable in the TREC 20-17 contract or by amendment.

Cash

No lender requirement. Some cash buyers waive it; investors almost always order one anyway.

Formosan termites are a Bexar County problem

Formosan subterranean termites (Coptotermes formosanus) are not a rumor here. TDA has documented established populations in Bexar County for years, particularly on the south and east sides and in older neighborhoods with mature trees — think parts of 78210, 78214, 78223, and pockets of Southtown and Highland Park. They also show up in newer subdivisions where builders staged lumber on bare ground for months.

The practical difference matters:

• A native subterranean colony might contain 100,000–300,000 termites.
• A mature Formosan colony can contain several million and eat wood faster.
• Formosan colonies build aerial carton nests inside walls, which means they can survive without soil contact — a fact that changes treatment strategy from bait-and-perimeter to structural fumigation or foam injection.

If your WDI comes back with Formosan identification, expect the buyer's lender to ask for a licensed treatment record and, sometimes, a transferable termite bond before funding.

What "evidence" means on the form

This is where sellers get blindsided. The inspector is required to report anything visible, even if it is clearly old and long-treated. Common findings on San Antonio homes:

• Mud tubes on a pier-and-beam foundation in a 1940s home in Beacon Hill or Monte Vista — even if inactive and covered in paint from 20 years ago.
• Old exit holes and frass in a garage door frame or a fence post touching the slab.
• Prior treatment holes — the drilled-and-plugged pattern along the interior slab perimeter from a subterranean treatment done in the 1990s.

An honest inspector will note it, and the lender will read the notation literally. "Evidence of previous infestation" on the form triggers a lender request for either a current treatment or documentation of past treatment with a transferable warranty.

Conducive conditions the inspector will flag

Section III trips up more San Antonio sellers than active termites. The inspector writes down conditions that make future infestation more likely. Fix these before you list:

• Mulch or soil piled against wood siding or stucco weep screed (very common on stucco homes in Stone Oak and Alamo Ranch).
• Firewood stacked against the house.
• Deck posts set directly in soil rather than on concrete piers.
• Wooden fence pickets touching the exterior wall.
• Form boards or scrap lumber left in a crawlspace or under a deck.
• Downspouts discharging next to the foundation, or an AC condensate line dumping under the slab edge.
• Wood-to-ground contact at porch columns — a very common finding on 1950s ranches in Terrell Hills and Windcrest.

A licensed pest company will list every one of these. A good handyman can eliminate most of them in a weekend for the cost of a bag of concrete and a length of galvanized bracket.

Treatment records and the transferable bond

If your home has been treated for termites in the last several years, find the paperwork before you list. What buyers and lenders want to see:

• The service invoice and treatment diagram (perimeter trench-and-treat, bait stations, or foam).
• The active ingredient and the label warranty (Termidor and Altriset carry longer soil residuals than pyrethroid-only treatments).
• Whether the bond is a re-treat only bond or a re-treat and repair bond.
• Whether the bond is transferable to a new owner, and any transfer fee (usually $50–$150).

A transferable, active bond can neutralize a Section II finding on the WDI. Without it, the lender will typically require a fresh treatment before funding, at seller expense, at $800–$1,800 for a standard perimeter treatment and considerably more for Formosan fumigation.

What most people get wrong

• Assuming the WDI is a pass/fail inspection. It is not. It is a disclosure of what the inspector sees. Any finding stays on the form. The question is what the lender will accept — usually treatment plus documentation, not zero evidence.
• Ordering the WDI too early. VA requires the report be dated within 90 days of closing. Order it after the option period ends and the appraisal is scheduled, not before you list.
• Letting the buyer's agent pick the pest company on a VA deal. The seller is paying. The seller chooses the licensed provider, subject to it being a legitimate TDA-licensed operator. Ask for the license number and confirm on the TDA website.
• Trying to hide prior treatment. Section 5.008 of the Texas Property Code and the TREC Seller's Disclosure Notice (OP-H) both require you to disclose known termite history and treatments. Failing to disclose is a bigger problem than the termites themselves.
• Confusing a WDI with a general pest inspection. A WDI is a specific federal-form-derived report on wood-destroying insects only. It does not cover rodents, roaches, or scorpions — all common in San Antonio and none of them a lender's problem.
• Getting a re-treatment quote from the same company that did the WDI. There is nothing inherently wrong with this, but the incentive is obvious. Get a second quote before you agree to $1,500 of work in the closing window.

Get the report ordered on your terms

If you know your buyer is using VA financing, order the WDI yourself, from a company you have vetted, on your timeline. Fix the conducive conditions before the inspector arrives. Pull the old treatment records now, before the title company is chasing you on a Friday afternoon.

When you are ready to list, HomeFinder lets San Antonio owners post FSBO for free at /list-your-home, or connect with a local agent who has closed VA deals at /agents. If you are still working out timing, /resources has more on prepping a Bexar County home for a lender-driven closing.