For many active military members and veterans looking to purchase a home in the Twin Cities, using a VA loan is an attractive option due to its numerous benefits, including no down payment and competitive interest rates. However, when buying a condominium or townhome, veterans may encounter an unexpected hurdle—some condo complexes may not be approved for VA financing. Fortunately, the U.S. Department of Veterans Affairs (VA) offers a special waiver process that can help veterans navigate this challenge and still secure their dream home.
Why Some Condos Are Not VA-Approved
The VA has specific requirements for condominiums to ensure they meet eligibility criteria for financing. These include:
- A certain percentage of units being owner-occupied
- Financial stability of the homeowners’ association (HOA)
- No excessive delinquency rates in HOA dues
- Compliance with VA regulations regarding property conditions and resale restrictions
If a condominium complex does not meet these criteria, the VA may reject it for financing, making it ineligible for a VA loan. This can be frustrating for veterans who find a condo they love but are unable to use their VA benefits.
The VA Condo Approval Waiver
Veterans who want to purchase a condo that is not VA-approved may be able to apply for a VA condo approval waiver. This process allows individual buyers to request an exception for a specific unit within an unapproved complex. While approval is not guaranteed, the waiver provides an alternative pathway for veterans who are committed to purchasing a particular condominium.
Steps to Apply for a VA Condo Waiver
Work with a VA-Savvy Lender: Not all lenders are experienced in navigating VA condo approvals. It’s crucial to work with a lender familiar with the waiver process who can guide you through the necessary paperwork and requirements.
Request a Spot Approval: The lender can request a spot approval for the individual condo unit, even if the entire complex is not VA-approved. The VA will review the unit’s eligibility based on its financial and occupancy status.
Provide Supporting Documentation: The VA may request additional documentation, including HOA financial statements, insurance policies, and legal documents pertaining to the condominium association. Your lender, along with a Realtor®experienced in assisting military members and veterans, can help compile and submit the necessary materials to support your waiver request.
VA Determination: Once the application is submitted, the VA will review the request. If approved, the active military member or veteran can proceed with the purchase using a VA loan. If denied, exploring alternative financing options may be necessary.
Additional Considerations for Twin Cities Active Military Members and Veterans
The Twin Cities real estate market offers a wide range of condominium options, from modern urban high-rises in Minneapolis to lofts in St. Paul and surrounding areas. Given the competitive market, veterans should:
- Work with a military veteran friendly Realtor® who understands VA loans and condo approvals
- Check the VA’s Approved Condo List before starting their search
- Have a backup plan in case their preferred condo is not eligible for a waiver
Although not all condominiums in the Twin Cities are VA-approved, military members and veterans still have viable options. By working with an experienced real estate professional like Shannon Lindstrom with RE/MAX Results and exploring the VA waiver process, they can enhance their chances of securing a suitable condo. For veterans seeking to purchase a condominium, hiring a knowledgeable real estate agent and lender is essential for successfully navigating the approval process.
If you or someone you know has questions about real estate or would like to learn how Shannon Lindstrom can assist, please don’t hesitate to reach out. Shannon is a Realtor® with RE/MAX Results and holds certifications as a Military Residential Specialist (MILRES), Military Relocation Professional (MRP), and Veterans Certified Real Estate Agent (VCA). She is dedicated to serving the Twin Cities and greater Minnesota area. Contact Shannon today at 612-616-9714 or visit www.ShannonLindstromRealtor.com.
Shannon Lindstrom, Realtor®, CDRE®, CREDS, GREEN, MILRES, MRP, VCA
RE/MAX Results
7373 Kirkwood Court No, Ste. 300
Maple Grove, MN 55369
Direct: 612-616-9714
[email protected]
[email protected]
www.ShannonLindstromRealtor.com
www.ShannonLindstrom.info
www.MNDivorceRealEstateExpert.com
