For veterans and active-duty service members, the VA loan program offers significant benefits, including the ability to purchase homes with no down payment and favorable terms.

While most people associate VA loans with single-family homes, VA loans can also be used to purchase condominiums. However, not all condos are eligible for VA financing. To qualify, a condominium must be on the VA-approved condo list.

In this guide, we’ll cover everything you need to know about VA-approved condos, the process of finding one, the benefits of using a VA loan for a condo, and how to navigate the financing process.

What Are VA-Approved Condos?

VA-approved condos are condominiums that meet the U.S. Department of Veterans Affairs (VA) requirements for financing. The approval process ensures that a condo meets certain standards related to financial stability, management, and safety. Once approved, the condo project is added to the VA-approved condo list, making all units within the development eligible for VA financing.

For a full list of approved developments, you can access the VA’s Condo Approval Tool here.

Benefits of Buying a VA-Approved Condo

Purchasing a condo with a VA loan offers numerous advantages, many of which overlap with buying a single-family home using a VA loan. Below are some benefits specific to condo living:

Benefit	Description
No Down Payment	Buy a condo with 0% down, allowing you to enter homeownership without saving for a down payment.
No PMI	VA loans don’t require Private Mortgage Insurance (PMI), saving you on monthly payments.
Lower Maintenance Costs	Homeowners’ Associations (HOAs) cover exterior maintenance and common areas, reducing your personal upkeep responsibilities.
Access to Amenities	Condos often come with perks like pools, gyms, and communal spaces.
Competitive Interest Rates	VA loans generally offer lower interest rates than conventional loans.
Flexible Credit Requirements	Borrowers with lower credit scores can still qualify, making homeownership more accessible.

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How to Find VA-Approved Condos

Locating a VA-approved condo doesn’t have to be complicated. You can utilize a few resources to help you narrow your search:

1. Use the VA’s Condo Search Tool

The VA Condo Search Tool is a powerful resource that allows you to search for VA-approved condos by state, city, or even condo development name. This is a convenient first step because it ensures the properties you’re considering are already on the VA’s approved list, making the loan process smoother.

• Search by state, city, or development name
• Provides an official, up-to-date list of approved condos
• Ensures compliance with VA loan requirements from the start

2. Consult with a VA-Approved Lender

Working with a VA-approved lender is another excellent way to find approved condos. Lenders specializing in VA loans often maintain databases of condos that are already approved for VA financing, saving you the trouble of verifying them yourself.

• Access to a pre-vetted list of VA-approved condos
• Assistance with the loan process from an expert
• Insight into specific loan options for each condo

Most lenders who work with VA loans will offer guidance throughout the process and may have direct contacts with local condo developments.

3. Work with a Real Estate Agent

A real estate agent specializing in VA loans can be an invaluable resource for locating approved condos. Agents familiar with VA loan requirements have local knowledge of condo developments that meet the necessary standards and can help you find the perfect home.

• Knowledge of the local real estate market and approved condos
• Personalized guidance based on your specific needs
• Direct connections to sellers and developments

Many real estate agents also have access to networks that can provide up-to-date information on whether a condo development is on the VA-approved list or in the process of gaining approval.

Method	Description
VA Condo Search Tool	Search by state, city, or condo name on the VA’s website for a list of approved condos.
VA-Approved Lender	Lenders familiar with VA loans can guide you through eligible condo developments.
Real Estate Agent	Partner with a VA loan expert who knows the local market and VA-eligible condos.

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Eligibility Requirements for VA-Approved Condos

For a condominium to be eligible for VA financing, it must meet specific VA requirements. These include:

• Adequate Reserves: The condo association must have enough financial reserves to cover maintenance, repairs, and other obligations.
• Occupancy Requirements: A certain percentage of units must be owner-occupied to ensure community stability.
• HOA Management: The condo association must meet VA standards for governance, including transparent financial records and sufficient insurance.
• No Litigation: The association must not be involved in active litigation that could impact the financial stability or safety of the development.

If these conditions are met, the condo can be added to the VA-approved condo list, making any unit within the development eligible for VA loans.

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What to Do If a Condo Is Not VA-Approved

If you find a condo that you want to buy but it’s not on the VA’s list, there may still be options for securing VA financing. Here’s how:

• Submit a Request for VA Approval:
  Work with your lender to submit a VA condo approval request. This process requires documentation, including financial records, legal documents, and insurance information from the condo association.

• Check for FHA Approval:
  If the condo is already FHA-approved, it may speed up the VA approval process. FHA and VA share similar standards for condo approval, so this may help.

• Consider Alternative Financing Options:
  If VA approval isn’t possible, you might need to explore other financing options, such as FHA loans or conventional loans. These loans typically require a down payment and mortgage insurance but still allow you to purchase the condo.

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VA Loan Limits for Condos

In 2024, veterans with full entitlement have no loan limits, meaning you can finance a VA-approved condo without worrying about conforming loan limits. However, veterans with partial entitlement (those who have used part of their VA loan benefit or have an outstanding VA loan) may be subject to loan limits.

In most areas, the conforming loan limit is $765,600, but this limit can be higher in certain high-cost areas.

Entitlement Type	Loan Limit
Full Entitlement	No loan limits apply
Partial Entitlement	Loan limits apply (up to $765,600 in most areas)

For details on VA loan limits in your area, consult the VA’s loan limit calculator here.

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Frequently Asked Questions (FAQs)

What makes a condo VA-approved?

A condo must meet VA’s requirements related to financial stability, owner occupancy, and HOA management. It must be on the VA-approved condo list for VA financing eligibility.

How do I find VA-approved condos?

Use the VA Condo Search Tool, work with a VA-approved lender, or consult a real estate agent specializing in VA loans to find approved condos.

Can I get a condo VA-approved if it’s not on the list?

Yes, in some cases, you can work with your lender to submit a request to have the condo approved. However, this process takes time and requires cooperation from the condo association.

Are VA loan benefits different for condos?

No, the benefits such as no down payment and no PMI apply to condos just as they do to single-family homes, as long as the condo is VA-approved.

Do VA loan limits apply to condos?

Veterans with full entitlement have no loan limits, while those with partial entitlement may have to adhere to conforming loan limits, which are $765,600 in most areas for 2024.

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The Bottom Line

VA loans give veterans and service members the opportunity to purchase condos with favorable terms, including no down payment and no PMI.

However, it’s crucial to confirm that the condo is on the VA-approved list. By using the VA Condo Search Tool, partnering with a VA-approved lender, or consulting a knowledgeable real estate agent, you can find a VA-approved condo that meets your needs and enjoy the benefits of homeownership.