I'm told that condominiums and townhouses have to be pre-approved by the VA before VA financing can be used for the purchase. The property in question is a detached condo in a development built in 2011. The listing agent claims to have attempted to get VA approval when the development was first built, and was unsuccessful. My broker has told me that colleges in his office have made this approval happen in as little as 5 days. I was advised by my real estate agent to seek the help of a real estate attorney. We really like the houses in this development, and would love to purchase this one, but a seller's attention can only be held for so long, so I'm looking for the fastest possible avenue to gain VA approval for condo purchase. Thank you!
Real Estate Attorney
Unfortunately there is not much you can do personally to get the condominium development approved by VA. The complex must meet certain criteria and VA guidelines in order for them to finance any units in the development. The number of units rented versus owner occupied, number of units that have been sold and closed by the developer, and a minimum number of units in the complex behind in association dues, are a few factors taken into account. A representative for the condominium board of managers will have to complete an affidavit supplied by VA which will have all of the questions they require answers to for approval. VA also will require certain documentation to be reviewed by them. The financial situation of the condo is critical to their approval, so they will want to see the current budget, minutes of prior meetings and the amount of money in the reserve account, to name a few. As far as moving things along quickly, it will depend on how fast the association meets the requests for documentation. I hope this helps and good luck.
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