If you got a great deal on a house with termite damage, think again.  What you see with your eyes can be just a tip of the iceberg.  If you see termites inside your house, you can be sure that your house is already infested with termites inside the walls.  If you don't see any live termites but the damages are apparent, feel free to hire a private termite inspector who is not poised to sell you an annual termite control package.

Don't be fooled with  a new house.  New houses are as susceptible as older ones.  Termite infestation is found both in new and old homes.  Also, brick homes are not safe from termite damages.  Termites will eat the frames of the house.

I'm not suggesting that you should pass the deal just because of termite damage found in the home.  Hire an experienced termite inspector and have him check the house thoroughly.  If the infestation is not bad, the problem can be fixed with termite treatments.  There are very effective termiticides for treatment.

If you are not satisfied with just one inspector, consider hiring a second inspector for more accuracy.  Don't pay for either the inspection or the treatment.  Have the seller pick up the bill.  You may have to pay for the second inspector, but it will worth the money.

So my answer to buying a house with termite damage is, generally "NO" but if the damage is minimal and the house can be treated to a reasonable condition, then "YES"