If you’re an active member of the military or veteran, you’re probably well aware that you can use a VA loan to purchase a home. But what about buying a condo? Condos can be great investments because they’re affordable and easy to maintain. Owners are able to build equity fast and usually enjoy a plethora of amenities from living in a condo community. But what are the VA loan requirements for buying a condo? Here’s what you need to know.
Can I Buy a Condo with a VA Loan?
Perhaps you’re not ready to take on the responsibilities associated with a traditional single family home. Or maybe you feel like you don’t need as much space and could benefit from a lower mortgage payment. Or perhaps it just makes sense to buy a condo because of the location where you want to live. Regardless of your reasons, you’ll be happy to know that yes, it is possible to buy a condo with a VA loan. There are, however, some restrictions that you should be aware of.
VA Loan Requirements for Condominiums
VA loan requirements for condominiums are different from single family homes. In order to use your VA benefits to purchase a condo, you’ll need to meet certain criteria including:
- Location: The condo must be located in the United States or a U.S. Territory.
- VA-approved condo development: The condo you’re purchasing must be in a VA-approved complex. You can visit the VA’s website to request a condo report. If the condo is not VA-approved, you can ask the HOA to apply for approval.
- Owner occupancy: In order for a condo community to gain VA approval, at least 50% of the units must be occupied by owners. If the condo community was built just recently, at least 75% of units must be sold.
- HOA dues: In order to gain approval, at least 85% of owners in the condo community must be up to date on their HOA fees.
- Multi-unit housing: The condo community must consist of more than one unit.
- Numerous owners: No single entity (individual, investor, or company) can own more than 10% of units in the condo community.
- VA appraisal: The condo must undergo an inspection by a VA appraiser and meet all appraisal requirements.
- Primary residence: You must plan to use the condo as your primary residence.
- Additional requirements: You may also have to meet additional requirements per the VA or your lender in order to qualify for a VA loan.
Learn More about VA Loan Requirements for Condos
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