VA Condo Approval
The Department of Veterans Affairs (VA) requires they review and approve a condominium prior to financing a loan in each condo project. The VA approval does not expire and can be accomplished in a matter of weeks.
Here are the requirements for submission, and we will work with the condo board or its management company to compile the necessary docs:
All of the following items are required:
1. A cover letter requesting approval must accompany the package. This letter is to include:
A. Point of Contact’s name, address, and telephone number
B. Project name and complete address
C. Number of phases in project / Number of units in project
2. Required items:
A. Declaration of covenants, conditions, and restrictions (CCRs) (must reflect recording)
B. Bylaws for HOA (must be signed and/or recorded)
C. Copy of recorded final plat, map and/or air lot survey of project (must reflect recording)
D. Statement signed by a member of the HOA Board of Directors specifying any existing special assessments and any pending litigation affecting the association or unit.
E. HOA budget (existing or proposed) (not required for 2 unit condos)
F. Minutes of last two HOA meetings (not required for 2 unit condos) (If no minutes exist, we will need a board member to write and sign a letter of explanation for why this is the case)
3. Within the declaration and/or bylaws, these items must be highlighted:
A. Lease restrictions (No lease restrictions permitted for VA guaranteed loans)
B. Subordination clause (VA guaranteed loan is first lien, HOA is subordinate)
C. Right of first refusal (shall not be subject to any right of first refusal or similar restriction)
D. Arbitration agreement (only required for 2 unit condos)
Questions? Ajaffe@firsthome.com or 240 479 7658
Ready to pre-qualify?