VA Approval for Condos: What’s it all about
Expectedly, all condo units in a VA approved condo project are eligible for VA mortgage financing. … The VA used to allow for spot approvals on condos. A borrower could get approval for a single unit in an unapproved condominium.
Consequently, can the VA loan be used to buy land?
Buying land with a VA loan is possible, but it must be done simultaneously with constructing a new home. You can’t use a VA loan to purchase land by itself – even if you intend to build a home later.
One may also ask, how do I check to see if a condo is VA approved?
In order to determine if a condo is VA approved or not requires a visit to the VA’s website. From there, if you know the name of the condo association, you are in luck. Just enter the name and you’ll have your answer within seconds.
How do I know if a condo is FHA-approved?
To know if your specific development or unit is FHA-approved, consult your complex’s developers or a real estate agent. Of course, one of the fastest, easiest ways to see if you have an FHA-approved condo is to check out the U.S. Department of Housing and Urban Development (HUD)’s official list online.
Check the VA’s current list of approved complexes or ask a lender to determine approval status. If the condo is not on the “approved” list, your buyer’s lender can request approval directly from the VA.
To be approved by the VA, the condo your condo development must meet these requirements: At least 50% of the units must be occupied by their owners. In other words, less than 50% of the units can be rented out to tenants. Less than 15% of the unit owners are behind on their Homeowners Association dues.
If your buyer falls in love with a condo that isn’t approved, your next move is to talk with the property manager or association at condo the buyer likes. The condo will need to go through a VA loan approval process, which can add some extra time to the process, and be extra work for the people in charge of the condo.
What does “Fannie Mae approved condo” mean? … A “Fannie Mae approved condo” means the condo in questions meets or exceeds those requirements, and the condo is eligible for federal financing. As of 2020, the Fannie Mae loan limit for condos is $510,400 — at least, in most parts of the country.
PURPOSE: The purpose of this Circular is to announce expanded eligibility for VA home loan benefits for certain members of the National Guard and to provide guidance on the process for obtaining a Certificate of Eligibility (COE).
The biggest difference between a condo vs. apartment is ownership. An apartment is defined as a residence that is rented, often as part of a larger residential building. A condo is similar in structure to an apartment — usually a unit within a larger residential building — but condos are owned instead of rented.
VA Condo Approval Checklist
The condo development must have more than one unit. At least half of the units need to be owner-occupied. No single entity can own more than 10% of the units. At least 85% of residents should be up to date on HOA dues.
VA mortgage financing is available for 1 to 4 family, owner-occupied properties. VA Loans are not available for non-owner-occupied properties, such as vacation homes or investment properties. To qualify as an existing property, the home must be fully completed for at least one year before occupancy by the veteran.
Borrowers can use their VA home loan benefits to purchase a condominium. … The VA must approve a condo complex in order for a borrower to purchase a unit. Hundreds upon hundreds of condo developments across the country are already on the approved list.