FHA Inspection Question-Termite Related

[Josh Boyd]

Hello,

We found evidence of previous termite damage under a house we are renovating.  My goal is to hold the house for myself, but I always prepare a backup strategy.  In this case, flipping the home would be my backup strategy.  To receive max value, we would want a buyer that could get a mortgage...

The house is a 1920's mill home in great shape and in a desirable area. There are no termites under the house and the affected area was already repaired with new support beams. However, there are still a few areas where you can tell that the house had a termite problem years ago. For the house to get an FHA mortgage, do we literally have to remove all evidence that termites had ever been under the home? I hate to rip out areas where the repair isn't needed.

Thank you,

Josh