Condominiums are a little bit different then a single-family house but you can buy a condo with the VA loan. There are certain qualifications and requirements if you’re planning on buying a condominium or townhouse with the VA loan. For starters, 50% or more of the building units must be owner occupied. If more than 50% are currently rented out or used as investment rentals, you may not qualify. Also, no more than 15% of owners can be behind in homeowners association fees. 85% of the homeowners within the complex must be up-to-date on paying their monthly, quarterly or annual homeowners dues. Finally, if the condos have been newly constructed, 75% of the units must be sold prior to allowing a VA loan on one of the units.
Other than these three restrictions, purchasing a condominium with the VA loan is very similar to a single-family house. It really comes down to the style of condominium and any additional fees.
VA loans mean that the seller will pay the closing costs and there is very little out-of-pocket costs for the buyer. However, condominiums do require monthly homeowners association fees which can range anywhere from $100 a month to several thousand dollars a year. This is something you’ll need to consider when applying for a mortgage. Lenders will include this cost when biting how much home you can afford. Let’s say that you can afford a $200,000 condominium and the monthly payment on it but with monthly homeowners dues it may drop which you can actually afford to about $180,000. You’ll want to talk to your lender about these options and whether or not you’re planning on purchasing a condominium within an association.
So, if you’re interested in buying a condominium in Panama City Beach with the VA loan consider talking to one of our lenders. Because this is what we specialize in we know lenders that can find the right financing for your needs.