Military life can be hectic, so the low maintenance living that condominiums offer can be intriguing. Veterans or qualified surviving spouses can also appreciate simple condo living. One great advantage that VA eligible buyers have is that it is possible to finance VA approved condos with no money down. Just like a regular home, Veterans Administration loans offer 100% financing to buyers that have full eligibility or even with enough bonus entitlement available. It is also possible to refinance an approved condo either to lower the mortgage rate or payment, as well as refinancing for cash-out purposes. A key requirement to use a VA home loan for a condo purchase is that the condominium complex must be approved by the VA.
Historically, condos have been tougher to finance because lending agencies require condominium complexes to meet certain standards to be “financeable.” VA home loans are no different. Although, if the condo association is a healthy one, it is usually not that tough to get approved.
As mentioned above, to buy a condo with a VA loan, the condo complex must be VA approved. Luckily, there is a website that provides a list of VA approved condos. To look up condos, just follow these steps and use the tips below:
Click here for condo search on VA Portal
1. Select “Details” in section 1
2. Check the box for “Retrieve only approved condos”
3. Search at least by “state”
Tips for using the VA Approved Condos Search Site:
It is best not to type the name of the condo. Names could vary, plus the site may not bring it up even if spelled correctly. If you want to search a small area, search by city and then search by the county separately. Sometimes condos will show on one and not the other.
Keep in mind that if the property is a townhome, these requirements do not apply. If you are having a hard time finding VA eligible condos, call one of our OVM loan officers, and we will help you search.
What if a condo is not on the VA approved condos list? We can help!
Get Condos VA Approved
Don’t just think of this as an advantage to buyers! There are others that can benefit greatly from the Veterans Administration approving their condos. Others that may benefit include:
- Condo Associations
- Condo Owners
- Listing Agents
Since condos are tougher to get approved for financing, it is beneficial to get the complex approved by the Veterans Administration. This is especially true in areas with a concentration of active military and military veterans. Just think, if a condo complex is approved up-front for VA financing, it will attract more qualified buyers. More buyers = more sales = higher values = more profit for sellers = healthier condo association = happy condo owners & more sales for Realtors®!
So, what is the process for VA condo approval? Luckily, we have experience and success in this area. We are glad to help submit the condo complex to VA. A point to remember is that the cooperation of the condo association and management is key. They have the documentation which will be required for submission to VA. Therefore, if you are a Realtor®, the seller of a condo, a condo association, or a buyer, contact our team for assistance on VA approved condos.
If you are looking to purchase a condo with a VA loan, let’s have a conversation. Eligible condos purchased with a VA home loan could allow a true no money down option. This even includes options for the seller to pay the buyer’s closing costs, escrow setup, debts, lease buyout, and other benefits. Learn more about this benefit in a recent article, “How military buyers can include their VA closing costs in their purchase.“