Buying a Condo With a VA Loan: What You Should Know About Requirements & Process

by Mike Flannagan 08/07/2022

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:

Is the Condo VA-Approved?

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.

Prepare for a Potentially Long Process

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.

Requirements for VA Approval

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.

About the Author
Author

Mike Flannagan

Mike Flannagan, Principal Broker @FlannaganAssociates. Mr. Flannagan began his real estate career in 1991, Mike’s educational and professional experiences have provided a strong foundation in his real estate career. Such a background has been exceptionally useful in understanding, managing, problem-solving, and ultimately closing complex transactions. These talents, however, do not preclude equal success in navigating more traditional transactions, where Mike’s naturally strong work-ethic and contagiously kind personality complete the full circle of his effectiveness as a true and pleasant partner in the purchase and sale of a full range of real estate assets. Mike is also a Master Real Estate Developer and has worked on various communities right here in Loudoun County. Additionally, he also build’s luxury custom homes through his entity Virginia One Development priced from $3-million and up. Mike has passed $1 Billion in total life time achievement in transactions.