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By Eleanor Thorne1 Comment
If you are interested in purchasing a Condominium in NC, and use a VA loan to buy it – you will need to a list of VA Condo Approvals in North Carolina.
The North Carolina VA Loan Approved Condominium List And Homeowner Association Approval Process:
Thank you for your Service! In North Carolina we are fortunate to have so many bases, and with them – thousands of Service Members. VA Home Loans are one of our favorite Mortgage Programs, not because they are easy to do, they are not, but because it is a way for us to give back to the men and women that have bravely served or country. It surprises us that many Veterans “neglect” to tell their loan officer that they served – because this is one of the best benefits you keep from your Service!
Many of the younger Veterans have limited income, as most younger Borrowers do, so they often start off purchasing a condominium as their first property. Additionally, the renewed interest by First Time Home Buyers to live in a more “walkable” urban area means that condos in NC are a very good investment. In order for a Veteran to be able to use their Veteran’s Eligibility Benefit towards the purchase of a condo, the condo needs to be on the VA Approved Condo List, just like condo’s have to be on a FHA Approved Condo List for folks who want to purchase a condo in Charlotte, Raleigh or Wilmington with a FHA Mortgage.
While Realtors that work with Veteran’s on a regular basis are aware of this, most other Realtors as well as some Loan Originators are not. The VA and FHA Approved Condo Eligibility Program was historically very similar in North Carolina. However, the approved Condo project list in NC for VA Loans looks very different from the approved projects on the FHA List. FHA changed the guidelines in 2010 for condo project approval in NC, and they now must re-certify that they meet the guidelines every two years. After 2011, many condo projects in NC never submitted their updated paperwork.
However, VA does not have the same requirement for condos to be re-certified every two years. Once a condo is on the VA Approved Condo List it does not have to be certified again. Presently there are several condos on the VA Approved Condo List that are not on the FHA Approved Condo List. To compare the two lists for your area simply click on the two links below.
NOTE:Whenlooking up a VA Condo,DONOT fillin the County)
If thea Condominium Complex is not on the VA List, it can be added by going through a similar certification like FHA. Why would you want to do this? Because having a project approved could make it easier to sell your home! Here’s the checklist of documents needed for Condominium Approval through the VA. Keep in mind that this certification process adds to the Underwriting time, sometimes as much as 3 weeks:
Remember that there are some closing costs that Veterans are not going to pay in NC, again we can work with you and your Real Estate Agent to negotiate the best fees, and which ones a Seller can help you pay!
Programsavailable to you! Did you know that it might be to your advantage tomake a Down Payment on a VA loan? Call us aboutVA Condo Approvals in North Carolina and VA Mortgage Loans!Steve Thorne, NC Mortgage Experts 919-649-5058 Or, connect with us on Facebook!
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About Eleanor Thorne
I see myself differently than most loan officers in the Cary/Raleigh market. As a rare Cary native, I see myself as an expert on the area, on mortgage industry changes & factors that effect rates! I've lived in Cary since 1968 - and I'm second generation "mortgage." I work with my husband, Steve Thorne Mortgage Loan Originator #60596 Equal Housing Lender
The short answer is yes. The longer answer is that buying a condo with a VA loan isn't much different from buying any other home, but the condo complex must still be VA approved. The purpose of this approval is to ensure that eligible VA loan borrowers aren't overly burdened by the HOA in any way.
Why would a condo not be VA-approved? Condos may be denied for VA approval for several reasons, including if the condo's HOA institutes a right of first refusal clause, units show various signs of financial distress and if the majority of condo owners are behind on their HOA payments.
The VA Condo Approval list is the official list of VA approved condominiums released by the Department of Veterans Affairs. This list is updated weekdays in real time, so you can be sure you are getting the most up-to-date information.
The average time to get a condo VA approved is 15 - 30 days
The process of getting VA Condo Approval generally takes 30 days or less. The reason for this processing time is their 2-step application process. First, we send the application to the regional office and a Staff Appraiser will review it for content.
To be approved by the VA, the condo your condo development must meet these requirements: At least 50% of the units must be occupied by their owners. In other words, less than 50% of the units can be rented out to tenants. Less than 15% of the unit owners are behind on their Homeowners Association dues.
VA loans are designed to fund primary residences for service members. Purchasing a business. VA loans can't be used to purchase a storefront, office space or any other non-residential properties. Buying unimproved land.
Total cost of a typical condominium to become VA Condo Approved is $850. A non-refundable $175 down payment will apply to all lenders, realtors and loan officers to start the process. The Remaining $675 will be due upon submission.
To qualify for VA approval, the condo development must meet the following requirements: More than 50 percent of units are owner-occupied. Less than 15 percent of unit owners are behind on their Home Ownership Association (HOA) fees.
For a Condo to become VA Approved, it must meet a special set of guidelines. These guidelines are somewhat different from FHA. VA approval does not expire, so no re-certification is necessary.
The Virginia Condominium Act is a set of laws that govern the operation and management of condominiums in Virginia. The Act sets forth the rights and responsibilities of condominium associations and unit owners.
The property or project must be completed — if it's still in the process of being built, it won't qualify, according to HUD. No more than 50 percent of the development's units can be used as rentals or owned by investors. Most of the condos should be owner-occupied.
Quickly and easily determine if a condo project meets Fannie Mae's requirements. Fannie Mae's Condo Project Manager™ (CPM™) is a free, web-based tool that enables lenders to quickly and easily certify a condominium project (or a legal phase of a project). The project must be eligible under the Full Review requirements.
How long is a VA preapproval good for? 60 to 90 days is usually when VA preapprovals become outdated. After this period, lenders may find it necessary to look at your finances again to ensure your preapproval letter is the best possible reflection of your purchase power.
Typically, a VA appraisal takes anywhere from one to two weeks to complete. Most areas can expect the appraisal process to take approximately 10 days. The VA does not mandate a strict timeline but offers a timeliness expectation based on the home's location and size.
Can you buy a multifamily property with a VA loan? The good news is you can buy a duplex, a triplex or a four-plex using your VA home loan benefits. However, the property purchased cannot be used solely for investment or rental purposes, and one unit must be your primary residence.
There are VA requirements applicable to all properties located in either a PUD or condominium. Also, condominiums (but not PUDs) must be approved by VA before any lots or units in the project are eligible for VA loan guaranty. Condominium Approval Procedures.
If you want to use a VA loan for an investment property, you must meet the VA's occupancy requirements. These mandate that you must use the property as your primary residence, move in within 60 days after closing and live in the home for at least 12 months.
Introduction: My name is Lakeisha Bayer VM, I am a brainy, kind, enchanting, healthy, lovely, clean, witty person who loves writing and wants to share my knowledge and understanding with you.
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Dennis Hartman (Veteran 1969-1975 USMC) says
