A VA loan can be used to purchase a condominium provided that the condominium complex is on the VA Approved Condominium List. A borrower wanting to
purchase a condo with a VA loan must purchase a unit on the
Approved list or have it added to the list if the project meets certain
VA requirements. (To have a project added to the list, a lender must provide a written request to VA along with a copy of the condominiums organizational documents. It is the
lenders responsibility to submit documentation to the VA Field Office on the borrower's behalf, but it usually is not a project or expense a lender will be eager to undertake.)
VA rules allow
favorable treatment of condo projects with prior approval from another
government agency such as Housing and Urban Development
(HUD) or the United States Department of Agriculture (USDA). I always suggest you double-check with your lender. Even though the VA Handbook says those projects receive favorable treatment from VA, there are no guarantees.
Make sure you do your groundwork upfront, otherwise, you may be using your valuable time looking at a property that can not be financed.
Please contact me at 650-701-7228 if you have any questions. I have been financing VA loans since 1991.
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