Condo Approval, HOA Document Review, and VA Financing
VA Loan Condo Buying Guide: How VA Condo Approval Works and What the VA Reviews
A Veteran can use a VA loan to buy a condominium, but the project must appear on the VA Condo Report before any unit in it is eligible for VA financing. If the project is not listed, the lender or sponsor can submit the condominium's organizational documents for VA review. The VA evaluates the project as a whole; there is no unit-level approval under VA rules.
Next step:
Check Your VA Loan Eligibility
Two layers of approval
- Borrower qualification: Credit, income, and VA eligibility are evaluated under the same rules as any VA loan. VA Pamphlet 26-7 Ch. 4, Topic 9
- Project acceptance: The condominium must be approved by the VA before any unit is eligible for a VA loan guaranty. VA Pamphlet 26-7 Ch. 16, Section 16-A.02
- Both must pass: A qualified borrower cannot close on a unit in a project that is not on the VA Condo Report. VA Pamphlet 26-7 Ch. 16, Section 16-A.02
- HOA dues count: Monthly HOA maintenance assessments are included in the shelter expense line of the loan analysis. VA Pamphlet 26-7 Ch. 4, Topic 9, Table 8 Item 20
How a project gets accepted
- Lender or sponsor submits: A written request plus the condominium's organizational documents go to the VA office of jurisdiction. VA Pamphlet 26-7 Ch. 16, Section 16-A.02
- VA reviews for compliance: The VA reviews the documents against VA regulations and sends a written decision. VA Pamphlet 26-7 Ch. 16, Section 16-A.02
- HUD/USDA shortcut: Projects already approved by HUD or USDA are added to the VA list without further VA review. VA Pamphlet 26-7 Ch. 16, Section 16-A.02
- Attorney opinion path: For projects not HUD- or USDA-approved, submitting an attorney's opinion on the documents is recommended to expedite VA review. VA Pamphlet 26-7 Ch. 16, Section 16-B
What the VA reviews
- Declaration of CC&Rs: The foundational document that creates the condominium and governs unit-owner rights. VA Pamphlet 26-7 Ch. 16, Section 16-A.03
- Budget and financial statements: Current HOA budget, financial statements, and reserves of the project. VA Pamphlet 26-7 Ch. 16, Section 16-A.03
- Litigation statement: Special assessments and pending litigation against the project. VA Pamphlet 26-7 Ch. 16, Section 16-A.03
- Insurance and management: Management agreement and evidence that common areas are properly insured and maintained. VA Pamphlet 26-7 Ch. 16, Section 16-A.03
HOA dues in your qualification
- Shelter expense: The monthly HOA maintenance assessment is added to principal, interest, taxes, and insurance in the estimated monthly shelter expense. VA Pamphlet 26-7 Ch. 4, Topic 9, Table 8 Item 20
- DTI numerator: HOA dues are part of the total debt figure in the VA's debt-to-income ratio calculation. VA Pamphlet 26-7 Ch. 4, Topic 9f, Table 12
- Residual income: Because HOA dues increase shelter expense, they reduce the residual income available after all obligations are paid. VA Pamphlet 26-7 Ch. 4, Topic 9
- Funding fee unchanged: The VA funding fee for a condo purchase is the same as for a single-family home: 2.15 percent for first use with less than 5 percent down. VA Funding Fee and Closing Costs
Top questions before you dig in
Can I buy any condo with a VA loan?
No. The condominium project must appear on the VA Condo Report before any unit in the project is eligible for VA financing. If the project is not listed, the lender or sponsor can submit the organizational documents for VA review. VA Pamphlet 26-7 Ch. 16, Section 16-A.02
Do HOA dues affect my VA loan qualification?
Yes. The monthly HOA maintenance assessment is included in the estimated monthly shelter expense on the loan analysis. It increases the total housing payment used in both the debt-to-income ratio and the residual income calculation. VA Pamphlet 26-7 Ch. 4, Topic 9, Table 8 Item 20
What if the condo is not on the VA list?
The lender or sponsor can submit the condominium's organizational documents to the VA for review. If the project is already approved by HUD or USDA, the VA will add it to the list without further review on receipt of evidence of that approval. VA Pamphlet 26-7 Ch. 16, Section 16-A.02
The Bottom Line Up Front
VA condo financing has two layers. The borrower qualifies under standard VA rules, and the project must separately be accepted by the VA. If the project is not on the VA Condo Report, no unit is eligible until the project is added.
HOA maintenance assessments increase shelter expense, reducing both the debt-to-income ratio and residual income. The funding fee, zero-down benefit, and absence of private mortgage insurance are the same as for a single-family VA loan.
How VA Condo Approval Works
- The VA approves condominium projects, not individual units. The condominium must be approved before any unit in the project is eligible for VA financing. VA Pamphlet 26-7 Ch. 16, Section 16-A.02
- The lender or sponsor submits a written request for VA approval along with the condominium's organizational documents to the VA office of jurisdiction. VA Pamphlet 26-7 Ch. 16, Section 16-A.02
- The VA reviews those documents for compliance with VA regulations and sends a written notice of its decision. VA Pamphlet 26-7 Ch. 16, Section 16-A.02
- Projects already approved by HUD or USDA are added to the VA list without further review on receipt of evidence of that approval. No formal VA approval letter is issued for these projects. VA Pamphlet 26-7 Ch. 16, Section 16-A.02
- For projects not approved by HUD or USDA, submitting an attorney's opinion on the organizational documents is recommended to expedite VA review. VA Pamphlet 26-7 Ch. 16, Section 16-B
- The term "single-unit approval" refers to an FHA program and does not exist in VA lending. VA Pamphlet 26-7 Ch. 16, Section 16-A.02
Checking the VA Condo Report
- The VA maintains a nationwide list of VA-approved condominiums, now published as the VA Condo Report at the LGY Hub. VA Pamphlet 26-7 Ch. 16, Topic 1
- Search the list by state, city, or project name using the VA approved condo lookup.
- If the project is listed, any unit in the project can be financed with a VA loan without additional project-level review. VA Pamphlet 26-7 Ch. 16, Section 16-A.02
- Do not rely on a listing agent's claim that a project is "VA-approved." FHA and VA approval are separate programs. Verify the project in the VA database.
What the VA Reviews: The Document Package
The VA office of jurisdiction reviews the condominium's organizational documents for compliance with VA regulations. The table below lists the documents identified in VA Pamphlet 26-7 Chapter 16, Section 16-A.03. VA Pamphlet 26-7 Ch. 16, Section 16-A.03
| Document | New project | Existing resales | Source |
|---|---|---|---|
| Declaration of CC&Rs | Yes | Yes | VA Pamphlet 26-7 Ch. 16, Section 16-A.03 |
| Bylaws for HOA | Yes | Yes | VA Pamphlet 26-7 Ch. 16, Section 16-A.03 |
| Articles of Incorporation for HOA | If applicable | If applicable | VA Pamphlet 26-7 Ch. 16, Section 16-A.03 |
| Plat, map, or air lot survey of project | Yes | Yes | VA Pamphlet 26-7 Ch. 16, Section 16-A.03 |
| HOA budget (existing or proposed) | Yes | Yes | VA Pamphlet 26-7 Ch. 16, Section 16-A.03 |
| Current financial statements and reserves | Yes | Yes | VA Pamphlet 26-7 Ch. 16, Section 16-A.03 |
| Special assessments and litigation statement | Yes | Yes | VA Pamphlet 26-7 Ch. 16, Section 16-A.03 |
| Minutes of last two HOA meetings | Yes | Yes | VA Pamphlet 26-7 Ch. 16, Section 16-A.03 |
| Management agreement | Yes | Yes | VA Pamphlet 26-7 Ch. 16, Section 16-A.03 |
| Recorded documents | As available | As available | VA Pamphlet 26-7 Ch. 16, Section 16-A.03 |
Section 16-A.03 lists 25 documents total. The table above shows the ones most relevant to existing resale condominiums. VA Pamphlet 26-7 Ch. 16, Section 16-A.03
How HOA Dues Affect VA Loan Qualification
- The VA loan analysis form (VA 26-6393) includes the monthly HOA maintenance assessment as Item 20 in the estimated monthly shelter expense. VA Pamphlet 26-7 Ch. 4, Topic 9, Table 8 Item 20
- The VA's debt-to-income ratio uses total monthly debt payments divided by gross monthly income. HOA dues are part of the housing expense in the numerator. VA Pamphlet 26-7 Ch. 4, Topic 9f, Table 12
- HOA dues increase shelter expense and reduce residual income, the amount left after all obligations are subtracted from net effective income. VA Pamphlet 26-7 Ch. 4, Topic 9
- The VA funding fee for a condominium purchase is the same as for a single-family home. For a first-use purchase with less than 5 percent down, the fee is 2.15 percent of the loan amount, financed into the loan. VA Funding Fee and Closing Costs
What to Ask the HOA Before Making an Offer
Each question maps to a document the VA reviews. VA Pamphlet 26-7 Ch. 16, Section 16-A.03
- Is the project on the VA Condo Report? If yes, you skip the project approval process. Check the VA approved condo lookup directly. VA Pamphlet 26-7 Ch. 16, Section 16-A.02
- Can the HOA provide the CC&Rs, bylaws, and articles of incorporation? These are required for VA review. If the HOA will not cooperate, the project cannot be submitted. VA Pamphlet 26-7 Ch. 16, Section 16-A.03
- What does the current budget and reserve balance look like? The VA reviews the HOA budget, financial statements, and reserves. VA Pamphlet 26-7 Ch. 16, Section 16-A.03
- Are there any pending special assessments or litigation? The VA requires a special assessments and litigation statement. VA Pamphlet 26-7 Ch. 16, Section 16-A.03
- Does the HOA have a management agreement? If the project uses professional management, the management agreement is a required document. VA Pamphlet 26-7 Ch. 16, Section 16-A.03
- Does the HOA carry property damage, liability, and personnel insurance? The VA requires the association to obtain coverages in these areas. VA Pamphlet 26-7 Ch. 16, Section 16-B
Frequently Asked Questions
Can I use a VA loan to buy a condo?
Yes. VA loans can be used to purchase condominiums, but the condominium project must appear on the VA Condo Report before the loan can close. The same zero-down benefit and absence of private mortgage insurance apply. VA Pamphlet 26-7 Ch. 16, Section 16-A.02
What happens if the condo is not on the VA list?
The lender or sponsor can submit the condominium's organizational documents to the VA office of jurisdiction for review. If the project is already approved by HUD or USDA, the VA will add it to the list without further review. VA Pamphlet 26-7 Ch. 16, Section 16-A.02
Do HOA dues count toward my debt-to-income ratio?
Yes. The monthly HOA maintenance assessment is Item 20 in the estimated monthly shelter expense on the VA loan analysis form. It is part of the total debt figure in the debt-to-income ratio. VA Pamphlet 26-7 Ch. 4, Topic 9, Table 8 Item 20
Can the HOA refuse to provide documents?
The lender must provide the organizational documents to the VA for review. Without them, the project cannot be submitted for approval. VA Pamphlet 26-7 Ch. 16, Section 16-A.02
Is the VA funding fee different for condos?
No. The funding fee schedule is the same regardless of property type. For a first-use purchase with less than 5 percent down, the fee is 2.15 percent of the loan amount. Veterans with service-connected disabilities are exempt. VA Funding Fee and Closing Costs
What is the HUD/USDA shortcut?
Projects already approved by HUD or USDA do not need further VA review. The VA adds them to the VA list on receipt of evidence of that approval. No formal VA approval letter is issued for these projects. VA Pamphlet 26-7 Ch. 16, Section 16-A.02
Does the VA require an attorney opinion?
Not required, but recommended for projects not approved by HUD or USDA. The opinion covers the organizational documents and is part of the approval package. VA Pamphlet 26-7 Ch. 16, Section 16-B
What is the difference between VA condo approval and FHA condo approval?
The VA approves projects as a whole. FHA offers both project approval and single-unit approval for units in unapproved projects. The VA has no equivalent. VA Pamphlet 26-7 Ch. 16, Section 16-A.02 HUD Handbook 4000.1, Section II.A.8.p.iii
How We Researched This Article
Every claim is sourced to VA Pamphlet 26-7, Chapter 16 or Chapter 4. The funding fee is from the VA's published schedule. FHA rules are referenced only for contrast.