Can I Buy a Condo with a VA Loan?
VA mortgage loans are becoming increasingly popular among veterans and military personnel, especially when it comes to buying a home. But what about those wanting to purchase a condo with a VA loan? Is it possible?
Fortunately, it is possible for veterans to purchase condominiums with a VA loan! Below is a helpful guide for those who may be considering this option.
VA Loan Requirements for a Condo Purchase
In order to buy a condo with a VA loan, the condo must meet the VA’s loan requirements. The primary requirement is that the condo must be on the VA’s approved list. To be added to the approved list, the condo must be a planned unit development, have at least six units, have homeowner’s association dues, and meet certain safety requirements.
Advantages of VA Condo Loans
There are several advantages to using a VA loan to purchase a condo:
- No down payment: The VA loan program does not require a down payment, making it easier for veterans to purchase a condo.
- More flexible credit standards: While conventional loan programs require a borrowers credit score to be 700 or higher, the VA loan program allows for borrowers to have a lower credit score and still qualify for a loan.
- No mortgage insurance: Unlike conventional loans which require mortgage insurance, VA loans do not require mortgage insurance, meaning veterans can potentially save thousands in the long run.
How to Begin the Process
If you are a qualifying veteran considering buying a condo with a VA loan, the first step is to contact a VA-approved lender. A VA-approved lender is usually a bank, credit union or mortgage broker specifically approved by the VA to originate VA mortgage loans.
Once you’ve found a qualified lender, you simply need to provide your information and secure the loan. Then the lender will submit the information to the VA for approval. The VA will then contact the condo association to make sure the condo meets the VA’s requirements.
Once the condo has been approved, the VA will issue a “VA Certificate of Eligibility” that proves the condo meets the VA’s guidelines. With this certificate in hand, your lender should be able to finalize and approve the loan.
Buying a condo with a VA loan is possible and can be a great option for veterans and military personnel. With no down payment requirement and more flexible credit standards, VA loans make purchasing a condo easier than ever. That said, veterans should make sure to work with a VA-approved lender, and consult the VA’s guidelines and loan requirements to ensure their loan is approved.
Can veterans buy condos with a VA loan?
Yes, veterans can use a VA loan to purchase a condo. However, the condo must be approved by the VA before it is eligible for the loan program. VA-approved lenders can help facilitate the process and ensure the loan is approved.
Can veterans with bad credit buy a condo with a VA loan?
Yes, veterans with bad credit can potentially qualify to buy a condo with a VA loan. However, they should note that VA loans generally require lenders to adhere to stricter criteria than other types of mortgages, such as higher minimum credit scores. Veterans must also meet other criteria for eligibility, such as an income that is sufficient for mortgage payments as well as a steady record of making on-time payments. Finally, the condo must also be on a list of approved properties from the Department of Veterans Affairs.