Before you Buy: Is the Property FHA and VA Approved?

Before you Buy: Is the Property FHA and VA Approved? | blog.phmc.com

Attention ⚠️ first-time, repeat buyers, and investors‼️

If you’re looking to purchase a condo, town home, or planned-unit development property and reap the benefits of low down payment requirements of FHA or VA loan options, did you check to see if the condo is approved? Many purchasers of these types of properties remain unaware of the approval required to obtain an FHA or VA loan option on condominium, town home, and planned-unit development (PUD) properties or don’t understand why it is needed in the first place.

Scroll below for all of your FAQs regarding FHA and VA property approval 👇

Why government loan options require an approval?

With condos, the overall fiscal and physical health of the ENTIRE development matters, not just the borrower’s creditworthiness. The government, FHA, Fannie/Freddie and Platinum are all here to protect you, the homeowner, before buying into just any association. You’ll thank us later.

In mortgage terms, this process is called warrantability.

A condo, town home, or PUD is usually considered warrantable if it meets all 5 of the following:

A condo, townhome, or PUD is usually considered warrantable if it has the following 5 characteristics: 1 No more than 10% of the units are owned a one entity • At least 51% of the units are owner-occupied • 15% or less of the units are in arrears with their association dues • No lawsuits against the HOA • Commercial space is no more than 25% of the building units

Click to download infographic

How do you know if a unit is already FHA or VA approved?

Both FHA and VA have an online directory of already approved properties. It is important to check the properties warrantability before you start the financing process. A property that is not yet approved may delay your closing. If your property appears on the list, you’re good to go!

How can I get the property approved?

Let Platinum handle it. We have in-house staff members qualified to get it approved for you, no matter your loan type. An approval can take anywhere from 30-60 days. It is highly recommended that you allow ample time for the condo’s approval because it can delay the mortgage process.

Can you do a loan on a condo that is not approved?

You can still get a condo financed that is not approved by FHA or VA. Unfortunately, if looking to obtain an FHA or VA loan as a low down payment option, you won’t be able to get the loan approved. However, there are other loan options that will finance the property.

Contact me for more questions regarding FHA/VA approvals & financing

Platinum Home Mortgage loan officer Matt Richter | blog.phmc.com

👨🏻‍💼 Matt Richter

📞 208-818-2889

📧 matt.richter@phmc.com

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