VA Loans and Condos: Everything You Need To Know

Buying a condo can be a great option for many homebuyers especially those using their VA loan benefits. Condos offer convenient amenities, less maintenance and often a more affordable entry point into homeownership. However, there are some unique requirements when purchasing a condominium with a VA loan. In this comprehensive guide, we’ll walk through everything you need to know about using your VA home loan for a condo.

Overview of VA Loans

First, let’s do a quick refresher on VA loans The Department of Veterans Affairs guarantees these zero down payment mortgages for eligible military members, veterans, and surviving spouses Some key facts about VA loans

• Requires no down payment for most borrowers
• No monthly mortgage insurance
• Competitive interest rates
• Can be used for new purchases and refinancing

VA loans help make homeownership more accessible and affordable for the brave men and women who have served our country.

Why Choose a Condo?

There are many reasons a condo can be a great fit, especially for first-time homebuyers or single buyers. Here are some of the most compelling benefits of condo living:

• More affordable. Condos are often 20-30% cheaper than single family homes in the same area on a per-square-foot basis. The lower price makes them attractive for first-time buyers.

• Amenities. Most condo communities offer amenities like a pool, fitness center, clubhouse, etc. This allows access to facilities that would be costly for a single family home.

• Maintenance. Condo owners pay a monthly homeowners association (HOA) fee that covers exterior maintenance and repairs. No more shoveling snow or cleaning gutters!

• Security. Many condos have secure access, cameras, and other safety features. This added security provides peace of mind.

• Community. For veterans looking to make connections, condos provide built-in community with neighborly interactions.

Using a VA Loan for a Condo

The VA has some extra requirements when using a VA loan to purchase a condominium. The property must be in a development approved by the VA. This ensures the condo association’s rules and finances meet the VA’s standards.

VA Condo Approval

• The VA reviews the condo association’s documents, budgets, and occupancy rates before granting approval. This process typically takes 2-4 months.

• Once a condo is VA approved, any unit within it can be purchased using a VA loan in the future. The approval does not expire.

• Borrowers can check for VA approval on the VA website. Veterans United also has a user-friendly search tool.

Condo VA Loan Requirements

While the VA has not published official condo approval guidelines, here are some common requirements:

• Owner occupancy rate above 50%

• No more than 15% delinquency on HOA dues

• Sufficient reserves and budget

• No undue restrictions on VA loan holders

Your lender will review all of these aspects during the approval process. Be sure to connect with a lender familiar with VA condo loans early in the process.

Getting a Condo VA Approved

What if you find a condo you love that is not VA approved? Don’t worry, you still have options:

• Ask the condo association to apply for VA approval through your lender. This involves submitting all governing documents, budgets, and other paperwork.

• Get an attorney opinion letter stating the condo meets VA guidelines. This can expedite the process.

• Prepare for a 2-4 month approval timeframe. Plan accordingly if you need to close quickly.

• Be aware the association or lender may charge fees for the approval process.

As long as the condo association is willing to submit the necessary documents, unapproved condos can become VA approved. This opens up financing options for all future VA loan borrowers as well.

Tips for Buying a VA Condo

Here are a few final tips for a smooth process when purchasing a condo with your VA loan:

• Condo fees – Remember condo fees do not count toward your VA entitlement, only the purchase price does. Ensure you can fit the monthly fee into your budget.

• Shop early – Only look at VA approved condos to avoid headaches. Expand your search area if needed to find good options already approved.

• HOA rules – Make sure you review and understand all HOA guidelines on pets, renovations, renting out units, etc. These rules are legally binding.

• Location – While price is key, also consider commuting time to bases, hospitals, or other essential locations if needed.

• Professional help – Lean on your real estate agent and lender to guide you through VA condo requirements and streamline the buying process.

With proper planning and a VA approved condo, you can be well on your way to realizing the dream of homeownership. VA loans help make it financially possible, while condos provide an affordable entry point. Partner with experienced pros and you’ll be sipping coffee on your new condo balcony before you know it!

Frequency of Entities:

va loans: 15
condos: 14
va: 7
condo: 25
va loan: 10
condo association: 3
homeowners association: 2
hoa: 8