Loans

Getting VA Loan Approval For A Condo

The approval process for VA Condo

There is a process for getting an apartment building on a VA approved apartment listing. If the apartment building you want to buy in isn’t on the VA approved apartment list, or is listed as “Rejected,” there is a process for getting it approved.

If the construction is refused or conditionally approved: If your condo building has been rejected by the VA or approved but with conditions, moving the building to “approved” status can be a simple matter.

Sometimes the staff at your local VA regional loan center simply needs to update their apartment building listing. At other times, the Department of Veterans Affairs may request additional information from the board of directors that manages the apartment building, such as a list of officers, a copy of the apartment’s bylaws, or documents that prove the building has a cash reserve fund large enough to cover future maintenance or repairs.

An apartment board may need to solve more serious issues to move a building from “disapproved” by the VA to “approved.” The apartment building’s homeowners association may have to change a section of its governing documents, build up its cash reserves, or eliminate resale restrictions on units. In other cases, they may have to pay for major improvements to the building’s foundation, roof, or other areas.

If the building’s status on the list of VA approved apartments is anything other than “Unconditionally Accepted,” contact your local regional loan center and ask a representative what steps would need to occur to move the building to “Approved” status.

If your building is not on the list of approved apartments: If your condo project is not on the VA’s List of Approved Apartment Buildings, you will need to start the application process for listing the building.

The local regional loan center accepts and reviews applications for approval of the apartment project. Fortunately, the application process is relatively simple: collect the required condominium documents, submit them to the regional loan center with your contact information and wait for the loan center’s decision.

The easiest way to do this is to ask the lender to provide documents and start the process. Be aware that the Homeowners Association of an apartment building is not obligated to provide these documents to you or your lender.

Documents Required for VA Condo Approval

Often the biggest challenge is gathering the required documents. Help is available from the Condominium Owners Association, the county clerk and the regional loan center. Here are the documents you may need to provide:

  • Registered Title Deeds (commonly referred to as CC&Rs) or Title Deed
  • Project registered maps (plans showing the division of property) and/or apartment site plan
  • Registered articles of incorporation
  • A signed copy of the housing units statute
  • Meeting minutes from the last two HOA meetings
  • Apartment budget and balance sheet

Your local regional loan center will also need to see a statement from the HOA that addresses the following questions:

  • Are there current or planned special assessments?
  • Is the project involved in any ongoing or pending lawsuits?
  • Is the construction of the project completed?
  • How many units of the project were sold from the developer?

The Regional Loan Center will review the documents. If anything is missing, representatives of the center will request additional documents.

Once all required documents are submitted, loan center staff will send the application to the staff attorney, who will review the documents to ensure that the project meets the VA’s lending guidelines. A full review can take up to 4 weeks, depending on how busy the regional loan center is.

Once the VA makes a decision, representatives will contact you (provided you provide them with your contact information) and inform you of their decision. If all goes well, you will now be able to find your project on the list of VA approved apartments, which means that the apartment building is now eligible for VA loans.

Common Reasons Kunduz Department of Veterans Affairs Rejects

The Department of Veterans Affairs refused to use the apartment buildings for several reasons:

  • A large number of apartment owners may fall behind on their monthly Homeowners Association fee.
  • A building may have too many units filled with tenants rather than owners.
  • A single person or financial body may own too many units of a building.
  • There may be too many vacant units in the building.

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