VA and FHA Approval

• Both the FHA and the VA have strict rules for mortgages used to purchase condominiums. These rules work to reduce the VA and FHA's risks of backing these loans by assuring that the property and the condo association are financially strong and stable. While there is considerable overlap between the approved VA condos and FHA condos and generally all VA-approved condos will qualify for FHA approval, it is possible for a condo to have VA approval, but not FHA approval. The most common reason is that a condo association or a buyer applied for VA approval, but not FHA approval.
  
  

Approved Status

• For a condo to receive VA or FHA approval, the condo must meet certain criteria. For example, more than 50 percent percent of units in the property must be owner-occupied (not rented) and less than 15 percent of owners can be behind on condo association dues. For properties that are close to these thresholds, the addition of a few renters or a few owners falling behind on dues can make the property ineligible for FHA or VA loans. For this reason it can be important for a buyer to act quickly if he finds a condo he wants to buy.
  
  

Finding Approved Condos

• Regardless of whether a buyer want to use a VA or a FHA loan to buy a condo, both the VA and FHA provide online information allowing buyers to find approved condos. Buyers looking for a condo can sort the listings of condos in various ways, including by geographic area and price. By using these online resources, a buyer can remove the hassle of finding a condo she wants to purchase but being unable to do so as the condo lacks approval.
  
  

Real Estate Agent

• A condo buyer should find an agent who has experience using whichever mortgage product the buyer wants to use. This way, a buyer will not have to personally sort through the condo listings from VA or FHA as the agent will complete this task. An experienced real estate agent can also help the buyer in other ways. For example, an agent can determine if a condo that is not on the approved list is eligible for approval and take the needed steps to apply for approval.