Many military veterans prefer purchasing a condo with their hard-earned VA home loan benefits as opposed to a traditional home. The best thing about a VA loan is that it offers military buyers much-needed freedom with their housing choices.
However, before proceeding with this option, you need to think about VA condo eligibility. The following are some things veterans need to know about it:
VA-approved condos and where you can find them
It’s true that, as a veteran, you can use your VA home loan benefits to purchase a condo. However, it is crucial to note that not all condos are VA-approved. For this reason, before you proceed to make an offer for a particular condo, you need to ensure that it meets all the requirements as stipulated by the VA.
One of the basic requirements you should look out for is to ensure that over 85% of the condo owners in the building are up to date with their HOA payments. Another requirement is that you should opt for a building that is at least 50% occupied.
A VA loan can only be used to purchase a particular condo if these and more requirements are met. To find the VA approved condo list, all you need to do is visit the VA website and search there.
The approval process for VA condo
If the condo you’re interested in buying does not appear on the list, it’s advisable that you keep on looking. This kind of situation happens when the particular condo is in bad condition or the Homeowner’s Association (HOA) has not yet applied for VA approval.
It’s important to understand that the VA approval process for condos requires time and patience. However, if you’re certain that you’ve found the ideal condo, you can always apply for its approval.
All you got to do is get in touch with the property manager and get the approval process started. You can also find a condo that is approved by the Department of Housing and Urban Development (HUD).
Documents required for VA approval
For the HOA in charge of the condo to receive VA approval, they need to provide several documents to the US Department of Veterans Affairs (VA). However, not all documents are fundamental for the approval process.
Some of the documents are only required in special circumstances when there is information that requires verification. If you’d like to find out which documents are needed for the approval process, consider referring to the VA handbook in Chapter 16.
Also, it’s very important to understand that different regional offices have different requirements. For this reason, it is better you get in touch with your regional office and find out the documents they’ll need.
How to qualify for a VA condo loan
As a member of the military, getting your condo VA-approved is the first step of the whole process. You also need to qualify for a VA condo loan for the sake of financing. VA home loans are undoubtedly the best type of loans you can get out there.
This is because they come with their own benefits such as zero down payment, easy qualification process, low-interest rates, among many others. VA loans are only meant for veterans and active members of the United States military.
Some of the things you’ll need to qualify for a VA condo loan include a Certificate of Eligibility (COE), adequate credit score, and less than 41% Debt-to-Income (DTI) ratio.
Benefits of residing in a VA-approved condo
A VA-approved condo can be a great housing option for you. If you pick a great location, you’re guaranteed great views. Also, one of the best things about VA-approved condos is that they’re low maintenance. This means that you won’t need to worry about paying very high bills frequently.
If you do your research when choosing the ideal condo, you’re likely to get one that offers better amenities than most traditional homes.
Even though the process of getting a VA-approved condo can be a tedious one, at the end of it all, you’ll benefit from it. The above tips will guide you on how to go about the whole process without any complications.