While buying a condo is different from purchasing a house, it is still possible to purchase a condo unit through a VA loan. But before we explore the process of buying a condo with a VA loan, what classifies as a condo according to the VA? The Department of Veterans Affairs states that condos are those which have “common interest communities.” This means that, unlike typical suburban houses where the buyer is solely responsible for their own yard maintenance or roof issues, a condo owner collaborates with other condominium association members to share costs and responsibilities for common areas.
Now that we know the difference between a house and a condominium, how do we get the VA loan? One of the many benefits of the VA loan is that you can purchase other types of eligible properties. However, it is worth noting that the key distinction when it comes to attaining a VA loan is that the Department of Veteran Affairs must approve the condo project itself before the loan can be issued. In other words, you must choose only units from a national list of VA-approved condo projects. Fortunately, we have the updated and approved list of properties that are eligible for a VA loan.
How To Get A Condo With A VA Loan
The requirements to qualify for a VA loan are as follows:
- Active military
- An eligible family member of a military veteran
You may qualify for a Veterans Affairs loan if you fit one of these criteria. The great thing about availing of the VA loan is that sometimes lenders’ fees are either reduced or waived. This type of loan intends to ensure that service members, veterans, and their families get the help they need to acquire the home they need.
Fortunately, many private lenders, such as banks and mortgage companies, will help you get a condo with a VA loan. Veteran Affairs is the one who guarantees a portion of the purchase price, thereby mitigating the risk for the lender. This guarantee also allows you to receive more favorable terms, such as lower interest rates than conventional or non-mortgage insurance.
With this in mind, you will first need to apply for your valid certificate of eligibility (COE). The purpose of this is to ensure that you qualify as a borrower. You can work this through with your VA-approved lender. You must have acceptable credit and sufficient income to have your loan approved. However, you must ensure that this condo unit is intended as your primary residence since you cannot use the loan for purchasing an investment property.
Overall, the process of buying a condo with a VA loan is almost the same as purchasing a detached home. Both property types appreciate value, so your determining factor is really down to your needs. Speak to a VA condo expert to find out more information and help decide whether a condo is a right move for you.