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Did you know you could purchase a condo unit with a VA home loan? VA loans are a great home financing option since they don’t require a down payment and have lower interest rates than other mortgage products. So if you qualify for a VA home loan, purchasing a condo would be a fantastic choice.
The only thing left is to determine whether the condo is eligible for purchase by a VA loan. Read on to find out what we mean.
The first thing to do is start getting familiar with the VA’s rules and regulations on condo qualifications. Doing some research ahead of time will help you rule out specific properties from the get-go, so you don’t waste your time on a condo that doesn’t qualify in the first place.
The VA’s objective is to protect the interests of veterans. Some qualification criteria are practical, such as the common areas are well taken care of by HOA fees.
Other criteria have to do with how much authority the HOA has over things like when you can sell the condo. This is called “Right of Refusal,” and it allows the HOA to purchase your condo before a private buyer has the opportunity --an undesirable power that you want the HOA to have over your property.
The government has an online website where you can request the VA to give you a customized condominium report for the property you want to purchase. They’ll evaluate the condo for you and let you know if it passed their inspection.
If you are currently working with an experienced real estate agent, they will most likely research on your behalf. This step will make it easier for buyers, regardless of who searches.
Borrowers can request HOA to apply for VA approval. The approval process may last for months because it’s complicated and involves a lot of paperwork, so consider that when condo shopping.
There may be an opportunity to expedite the process by working with a mortgage professional that is familiar with the approval process. However, that is not a guarantee.
Condo developments are a good buy since they are often found in desirable living spots and are more affordable than single-family homes. You're good to go as long as the VA approves the condo unit you're eyeing.
If you’re ready to buy a condo with a VA loan, let our loan officers assist you with pre-approval.