VA Approved Condos
The VA home loan is a great option for qualifying Veterans when purchasing or refinancing a home. Offering programs with zero down payment and low interest rates, the VA loan has opened the door to home ownership for many members of our military, past and present. In 2016 there were over 700,000 VA loans funded across the United States, more than any year prior. This is not just an option for those looking to purchase a single family residence. The VA offers the same loan guarantee for condos as it does for detached homes. The key is choosing a VA approved condo development.
Each city in each state already has a number of VA approved condo options. Condos that have already been approved have gone through a review process where the Veteran’s Administration evaluates a number of legal documents including the Homeowner Association’s Declaration of Covenants, Conditions and Restrictions (CC&R’s), signed Bylaws, Amendments, Plans, Plat Map, Rules and Regulations, Meeting Minutes, Budget, Special Assessment Letter, Litigations Letter, and the HOA’s Articles of Incorporation although different regions may require additional information.
What if your condo project is not on the agency’s approved list? If that is the case, it’s not the end of the world. Your building can become approved by submitting the documents listed above and any others required by your region. The VA Lender’s Guide offers a tool allowing lender’s to upload the items requested for approval through the VA’s website. Upon review of these documents, the VA may approve or decline the application. A denial of the initial application is not always set in stone. If the condo meets guidelines, corrected and/or additional information may be all that’s necessary to obtain condo approval. Once a project has been approved by the VA, the approval does not expire and qualifies for the VA loan guarantee.