Are you looking to own a home at a lower cost, with little or no maintenance?
Are you OK with neighbors living close by? Would you like your new home to have amenities such as a pool, gym, clubhouse or playground for the children?
If this sounds like the lifestyle you desire using your VA home loan benefits to purchase a condo may be the best option for you.
What Properties Can You Purchase with a VA Loan
You can purchase several different types of properties using your VA Loan with an existing single-family home being the most common purchase made.
There are other types of properties you can buy using your VA loan including a newly constructed, manufactured, or modular home. You can also use your VA benefits to buy a multiunit property.
Buying a condominium is also an option for VA eligible purchasers. Keep in mind this process is a bit different from buying a single-family home or any of the other types of properties listed.
VA Approved Condo Developments
First, and most important, the condominium development you are considering must be approved by the VA before you can buy it.
If the condo you are interested in is not already approved you can check with the FHA and USDA. Their loan programs require condo approval as well and the VA can accept their recommendation.
You can also ask your lender to try to get your desired property approved by making a written request.
Requirements for VA Approval
- Owners must occupy at least half the units.
- Home Owners Associations dues must be current for at least 85% of the owners.
- If the complex is new construction at least ¾ of the units must be sold.
Advantages of Using VA Benefits to Buy a Condo
There are a few good benefits to buying a condo starting with condos can be purchased at a lower cost and using your VA loan benefit can mean you don’t need a down payment.
The value of condos goes up meaning you will accrue equity to be used if you decide to move up to a single-family home.
To find out more ways to use the VA loan to your benefit contact our preferred lender, Motto Mortgage Borrowers First.