Military veterans can use their VA loan benefits to finance a new home. However, different property types can have different processes and requirements compared to single-family residences. Here are the most important things to know about buying a condo with a VA loan:
You can use a VA loan to purchase a condo or townhome unit instead of a single-family home. However, the condo needs to be part of a VA-approved development. It's common for communities to state their VA approval if they have it, but there are resources available online through the VA you can use to check.
Buying a condo through a VA loan has some unique application steps. If you wish to buy a condo that is not already VA-approved, an approval process has to happen before you can buy. This process involves the lender requesting documentation from the development to determine their eligibility. Some of the information requested can include homeowner association bylaws, current financial and litigation statements and lot surveys of the property.
Unfortunately, this process can take several months, and the condos are not obligated to provide the documentation at all. Therefore, it's crucial to prepare your buying timeline accordingly. If your chosen condo is already VA approved, you can skip this part of the process entirely.
While the VA does not publish their specific guidelines for approval, there are some common considerations. Some of these conditions include owner-occupancy rates, vacancy rates and HOA dues. Your specific lender may also have requirements for approving a development in addition to the VA standards.
Finding your dream home can be a long process, and even longer if your financing requires additional steps to secure. If you're interested in using a VA loan to buy a condo, these are the most important things to remember.
Rebuilding the Economy One Home Sale at a Time
Gary has been in the Real Estate Business since 2005 and can be considered a seasoned Realtor. He has seen the down periods in the economy and the upward trends that we are experiencing recently. Through it all there has always been one unchanging need in our society: families want to purchase homes. And when they are ready to buy they need assistance to search through today's over-saturation of information released by our industry. In order to find that perfect home it can become a journey that requires perseverance and patience. And a seasoned Realtor can be the guide to assure a successful transaction from start to finish.
