There is a thorn in my side and I have been on a mission to get the correct answer to something. 

I will start by saying that I live in Connecticut. I was the seller's agent (the listing agent) and my  (builder) clients closed on a new construction home at the end of 2008.  The buyers got a VA loan. In the beginning of the loan process the buyers were told by their lender to get a termite inspection of which they did and there was no evidence of termites or termite damage.  The buyers paid about $100 for this inspection.

A week before the closing date  we were all told that the seller must have a termite treatment done at the seller's expense.  The pest control company estimated that this would cost about $1,300. 

The lender went back and forth about this and a day later I was told that termite treatment did not need to be done. 

However, I got the final call and was told that:

YES, even here in Connecticut, a termite treatment needs to be done to satisfy VA loan requirements according to this loan company's underwriter. 

Since the home closed in December and the ground was frozen it was not possible to do a termite treatment according to the pest control company, (which makes sense).  To solve this, the $1,300 for the termite treatment would need to go in an escrow account and in springtime a termite treatment would need to be done to satisfy the loan requirements and this is exactly what was done.  (So that money is still sitting there in the escrow account).

I must point out that $1,300 was a big expense that was sprung on my seller/builder at the last minute. 

Here is the question:  

• Is it true that a VA loan requirement of a new construction home must have a termite treatment in Connecticut for the VA loan to go through?

I've been asking around and have gotten mixed answers. I just want the right answer.  I know there are some VERY KNOWLEDGEABLE lenders out there and I want get to the bottom of this.  Thank you for your time.