Many condos and townhomes are financed with VA loans. But, not all condominiums and townhouses are eligible for VA financing.
Generally if the complex was built by a VA- or HUD-approved builder, then likely the condominium or townhome is eligible for VA financing. The Veterans Information Portal can help borrowers know whether a condo or townhouse is VA-approved for financing.
A lender, realtor or even the potential borrower can request a complete condo report showing VA-approved condos in the area. Or, borrowers can inquire about a specific property. Simply enter the name of the complex or ID number along with the city and state in which it is located and the VA regional office.
Even if the property is on the list, it must still undergo a VA appraisal for value and safety once the VA loan application process has begun. As a rule of thumb, condos and townhomes considered for the VA guarantee must be:
- Titled as real estate
- In a VA-approved development
- Affixed to a permanent foundation
- Meet VA’s minimum property standards for safe, sanitary and sound conditions
- Repaired of appraisal compliance issues before closing
For additional help determining whether the condo or townhome you wish the purchase is VA eligible, contact an experienced VA-approved lender.