Can I Buy a Condo With a VA Loan?

When President Roosevelt signed the GI Bill (also known as the Servicemen’s Readjustment Act of 1944), it included a key piece to help returning servicemembers readjust: VA loans. These home loans, backed by the Department of Veterans Affairs (VA), helped people throughout the country settle into homeownership. 

But a lot has changed in the passing years. Cities have gotten bigger. Houses have gotten more expensive. And buying a standalone single-family home might not be in the cards. Heck, you might not want all of the maintenance that comes with it. 

Good news. The VA loan program has adapted with the times. More than 25 years after the GI Bill, President Nixon signed the Veterans’ Housing Act of 1970. And that made it possible to buy a condo with a VA loan. 

That said, using a VA loan to buy a condo isn’t as straightforward as using this kind of mortgage to buy a house. Here’s what you need to know. 

The key to buying a condo with a VA loan: VA approval

You might think that’s nothing new. All VA loans need to get approved, right? Yes. But we’re not talking about your individual mortgage here. Instead, in order for a VA condo loan to go through, the Department of Veterans Affairs needs to approve the entire condo development. 

In some ways, this isn’t so different from buying a house. All properties paid for with a VA loan need to meet the VA’s minimum property requirements (MPRs). 

But with a condo, the VA also wants to be sure you’re buying property in a solid development. That protects both your investment and the VA guarantee behind it. The VA wants to see how the HOA is structured and make sure everything governing the condo development is legally sound.  

If you’re wondering why, it helps to understand how the VA sees condos. They call them “common interest communities.” When you buy a condo, you own your individual unit but you’re also taking on shared rights and responsibilities (i.e., an interest) in common property in the development. Take the roof, the courtyard, or the pool as an example. Before the VA will back a loan on a condo in the development, it wants to make sure the project’s governing documents and ownership structure meet VA standards.

That’s all background information. But it can help you decide on the right path to choose if you’re interested in buying a condo with a VA loan. 

Your two options for buying a condo with a VA loan

Two paths diverge in the condo-buying wood here. 

If you really have your heart set on a condo development and it doesn’t have VA approval, you’ll need to jump straight to option #2. But if you haven’t started condo shopping yet, option #1 is easier and faster. So you might want to start there. 

#1: Find a condo development that’s already approved

If you want to get into your future place faster, consider looking at condo developments that already have the green light from the VA. 

You can use their condo report tool to find options. 

Make sure you check the box that says “Approved” under “1. Retrieve only approved condos?” From there, every other field is optional. If you know you want to buy in a certain city or county, you can fill that in, then choose the state and hit “Submit.” 

That should pull up a list of condos with VA approval, helping you streamline your shopping and loan approval process. 

#2: Get the condo development approved 

If you’re in love with a condo that hasn’t yet made the VA’s list, you can still pursue approval. 

The VA publishes guidelines on condo approval conditions, but they’re fairly broad. Typically, the VA wants to see that the condo is mostly owner-occupied, doesn’t have high vacancy rates, and doesn’t come with excessive HOA fees. In most cases, these things benefit you as a condo owner, too. They’ll typically make it easier to sell the condo if you ever want to move. 

If you decide it’s worth it to pursue VA approval, find a VA lender willing to spearhead the process for you. They’ll need to work with the condo’s HOA to gather up documentation like the homeowners association bylaws and the plat map (the official map that shows how the development is laid out). 

Once they have everything required for the condo approval package, the lender submits it all to the VA for review. They’ll use the VA’s WebLGY (loan guaranty service) for that. 

Fortunately, the VA has a quick reference document to guide them through the process.

Here’s the good news: Once the condo development gets approved, you’re done. That approval lasts the lifetime of the development, so you won’t have to jump through this hoop again. 

Still, seeking VA approval usually takes a fair bit of time. If you’re in a hurry to buy or you want to avoid added stress, it’s generally better to put an offer on a condo that’s already VA-approved.  

Getting your VA loan to buy your condo

If you want to buy a condo in a VA-approved development or you want to find a lender to help you get your dream condo approved, we can help. We maintain a table showing leading VA lenders. This way, you can start scouting for the right lending partner. 

A strong lender will help you navigate the VA loan process, including getting the development approved if that’s necessary. They’ll be transparent about fees and offer you a competitive interest rate, too. 

It can take some time to find the best VA lender for your needs, so start comparing options today. With the right lender in your corner, you’ll be ready to get a VA loan, then use it to buy your condo.

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