What is a VA-Approved Condo?

A VA-approved condo is a condominium that meets specific standards set by the Department of Veterans Affairs. The VA approves these properties for financing because they have been deemed safe, financially sound, and in compliance with the VA’s guidelines. The goal of this approval process is to ensure that veterans are investing in a property that meets quality standards and is a viable option for homeownership.

To qualify for a VA loan, veterans must buy properties that are listed on the VA-approved condo project list. The approval process for these condos ensures that the properties meet the VA’s standards for both physical and financial criteria.

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:

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.

How to Get VA Approval for a Condo

If you’re considering buying a condo with a VA loan, the condo development must be approved by the VA. However, this approval is not automatically granted to all condo projects. The process for a condo to receive VA approval involves several steps:

• The Condo Development Must Apply for VA Approval
  For a condo to become VA-approved, the condo development (or homeowner’s association) must submit an application to the VA. This application includes detailed information about the property, the ownership structure, and the financial health of the condo association. The VA will review this information to determine whether the development meets the necessary requirements.

• The Condo Must Meet the VA’s Quality Standards
  The VA requires that all properties, including condos, meet its minimum property requirements (MPRs). These MPRs are in place to ensure that the condo is safe, structurally sound, and free from health hazards. For example, the property must have functional heating, plumbing, electrical systems, and meet basic structural integrity standards. Additionally, the condo must be accessible to emergency services, and there should be no environmental hazards.

• The Condo Must Meet the VA’s Criteria for Financing
  Aside from quality standards, the condo must meet specific financial criteria to qualify for VA financing. The VA looks at factors like the financial stability of the homeowner’s association (HOA), the overall condition of the condo complex, and whether the condo development is considered a good investment.

• The Condo Must Be Listed on the VA-Approved Condo Project List
  After completing the approval process, the condo project must be included in the VA-approved condo project list. This is a list of condo developments that have been reviewed and approved by the VA for financing. Only condos listed here are eligible for VA loans. This list can be accessed online by veterans, lenders, and other interested parties to verify whether a particular condo is approved.

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.

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.

VA Home Loan and HOA CC&Rs

When purchasing a condo or home in a planned community with a VA home loan, lenders may require a review of the Covenants, Conditions, and Restrictions (CC&Rs) set by the Homeowners Association (HOA). These rules regulate property use, maintenance responsibilities, and community standards to ensure compliance with VA guidelines.

• Property Use Restrictions – Rules on rentals, modifications, and business activities
• HOA Fees & Assessments – Monthly dues, special assessments, and payment penalties
• Architectural Guidelines – Regulations on exterior changes, landscaping, and renovations
• Common Area Rules – Parking, shared amenities, and usage policies
• VA Loan Compliance – Some CC&R clauses (rental caps, transfer fees) can impact loan approval

Before buying, review the CC&Rs to ensure they align with VA loan requirements and your homeownership goals.

VA Loan Limits for Condos

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 $806,500, but it can be as high as $1,209,750 in high-cost areas

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

The Bottom Line

VA-approved condos are a great option for veterans and active-duty service members looking to purchase a home with their VA loan benefits.

By understanding the VA approval process, the requirements for condos, and the benefits of VA-approved properties, you can make a more informed decision when shopping for your next home.

Remember to verify whether the condo you are interested in is on the VA-approved list, and don’t hesitate to reach out to your lender for more information. With the right research, you can find a safe, affordable, and VA-eligible condo that fits your needs.

Frequently Asked Questions

What does VA approved mean?
“VA-approved” means that a condominium project has been approved by the Department of Veterans Affairs for VA financing. This ensures the property meets VA’s safety, financial, and structural standards, allowing veterans to purchase the condo with a VA loan, which offers benefits like no down payment and lower interest rates.

How to check if a condo is FHA-approved?
To check if a condo is FHA-approved, you can visit the HUD website and use their FHA Condo Search Tool. This allows you to search by the condo’s name or address to verify whether it’s listed as an FHA-approved property. Lenders can also verify FHA approval during the loan application process.

Does VA accept HUD approved condos?
The VA generally does not accept HUD-approved condos automatically. HUD (FHA) and VA have different approval processes and criteria. While a HUD-approved condo may meet some requirements, it must still go through the VA’s separate approval process to qualify for VA financing.

Why would a property not be VA approved?
A property may not be VA-approved if it fails to meet the VA’s minimum property requirements, such as structural integrity, safety, or financial stability. Additionally, a condo development may not meet criteria like having too many renters or insufficient owner occupancy, or it may be owned by a single entity that exceeds the VA’s limits.

How hard is it to get a condo VA approved?
Getting a condo VA-approved can be a lengthy process, requiring a condo association or developer to submit detailed paperwork. The project must meet the VA’s property, financial, and ownership requirements. While it’s not difficult if the condo is well-managed and meets VA guidelines, it does require compliance with strict criteria.

How much does it cost to get a VA condo approval?
The cost of getting a condo VA-approved can vary, but typically, it involves a non-refundable fee of around $200 to $1,000 for the application process. Additionally, the condo association may need to cover other costs, like submitting documentation or hiring consultants to ensure the condo meets VA standards.