Condos must meet the requirements for FHA loans and VA loans in order for condo buyers to use these types of loans. If you’re planning on buying a condo and getting an FHA or VA loan, it’s important to find out first if the condominium community has been approved for these types of financing options.
Requirements for FHA Loans
In ordered to become FHA approved, a condo association or the condominium’s management company must submit an application. After that application is approved, renewal paperwork must be submitted each year. Contrastingly, VA loan approval doesn’t expire.
Many of the home search websites don’t list this kind of information, so an easy way to find out this information is to ask your real estate agent.
Why Might a Condo Community Not Meet the Requirements for FHA Loans?
One reason why a condo might not meet the requirements for FHA loans is that the ratio of investor properties (rental properties) to owner occupied properties exceeds 50%. Your lender will be able to give you more information about this type of scenario and others that could impact your loan.
If you’re buying a condo in Northern Virginia and you’re getting one of these types of loans, your real estate agent needs to look up the community’s FHA or VA loan approval status before you submit an offer. If you’re selling a condo, be sure to have your listing agent check on the requirements for FHA loans and VA loans before you accept a contract from a buyer who is getting one of these types of loans.
Thinking of buying a condo in Northern Virginia? It’s important to work with an agent who understands the key differences between condos and single family homes when it comes to real estate contracts. Call me at 703-462-0700 or email me at DarrenRobertsonHomes@gmail.com so I can help you in with your property search!
Learn more about requirements for FHA loans and why this type of loan may or may not be the best choice for you when buying a property.