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Condos 101: Using Your VA Home Loan Benefit


Because VA home loans are backed by the U.S. Government, a condominium project must be reviewed and approved by the VA before benefits can be applied to a purchase in that project. If you are thinking about using your benefits to buy a condo, our VA loan experts at Sente Mortgage would be happy to explain the process and help you get the financing you need.  

Meanwhile, here’s a little more information. 

The VA wants to be certain the condominium is fiscally sound, and it has certain requirements to meet that standard: 

  • At least half of the units must be owner-occupied (not rentals). 
  • Less than 15% of the owners are late with their HOA dues payments. 
  • At least three-quarters of the units must be sold if the project is new or a recent apartment conversion. 

The easiest way to find out if a condo project meets VA standards is to complete the online form to request a Customized Condo Report from the VA.  

Your request will return one of three possible results: 1) Accepted Without Conditions, 2) HUD Accepted, or 3) Unaccepted. The first is eligible for VA lending. The second means the project has been approved by HUD, but may or may not qualify for VA financing; your Sente loan officer can help you follow up.  

Unaccepted projects have not been reviewed or approved (or may possibly have been denied); if the project has not previously been reviewed, you may wish to pursue VA approval for the project, which you can do by working with staff at the Houston Regional Loan Center. You may be asked to provide various condo documents to support the review. The review process can take a month or more. 

You may be surprised to discover how many condo complexes are already qualified for VA lending.  

Whether you’re a first-time buyer, downsizing from a larger residence, or looking for an affordable home that’s closer to work or school, a condominium can be a great option. If you are a service member, veteran, or eligible surviving spouse, and you’re considering a condo purchase, our Sente Mortgage loan officers are knowledgeable, patient, and highly experienced with VA home loans. Want to learn more? Visit our VA loans page or give us a call today.

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