Buying a Condo with a VA Loan
Purchasing a condo has some serious perks, but there are certain requirements properties must meet to ensure that a VA loan can be used to help purchase a condo.
Condominiums have certain amenities that may be more appropriate or attractive to those looking to purchase a new home. Service members may be happy to hear they can apply their VA loan benefits to condominiums as long as the property meets certain criteria.
Condos can offer serious perks. For one, they come at a lower cost than traditional, single-family homes, making them easier to purchase and more affordable in the long run. They also require less maintenance and upkeep — a big advantage to military members who may not be on the property full-time.
Fortunately, many condos can be purchased with VA loans. Since VA loans require no down payment, they can make purchasing these properties even more affordable for service members and their families.
Finding VA-Approved Condos
Not all condos are allowed under the VA loan program. If you’re considering buying a condo with a VA loan, then make sure you choose an approved property first.
To do this:
- Head to the Department of Veterans Affairs’ approved condo tool.
- Select “Approved,” and enter your city and state. This should generate a list of approved condos from which to choose in second.
- Use the list of approved condo communities to guide your property search. You can look each property up on Zillow or Realtor.com, or you might consider working with a real estate agent who can give you more first-hand knowledge of local properties.
To be eligible, a condo’s governing association must have applied with the VA for approval. This ensures the property meets all standard VA condo requirements set by the department and that it offers a safe and healthy environment in which Veterans and service members can live.
If a condo you’d hoped to purchase is not on the list, you’ll need to go to the property or association manager and ask them to complete the VA approval process before you can proceed.
How to Buy a Condo with a VA Loan
Once you’ve found an approved condo you’d like to buy, you can then complete the VA loan process.
Here’s how that works:
- Make sure you meet the VA’s service requirements. You or your spouse must meet certain requirements regarding military service in order to qualify for a VA loan. Make sure you’re eligible here.
- Chose a lender. Only certain lenders are allowed to issue VA loans, so do your research before choosing which mortgage company to go with.
- Apply for your Certificate of Eligibility. This can be done through your eBenefits portal or via any VA-approved lender.
- Fill out your lender’s full application. You might also need to submit a number of financial documents.
- Await underwriting and approval. Your lender’s underwriting team will verify your financial information and ensure you meet the requirements of the loan.
- Close on your mortgage. After you’ve received your VA loan condo approval, you’ll attend your closing appointment, pay your closing fees, and sign your final paperwork.
Once all is said and done, you’ll be the proud owner of a condo. After your funds have transferred, you’ll receive the keys and are free to move in.
