VA Approval Not Easy, But Worth It, Some Say
By Clayton Wallace, Condo Owner Magazine, January 7, 2013
One often-overlooked area of financing for condos is through the Veteran’s Administration (VA), which provides financing for armed forces veterans. According to Janette Klein, a broker associate for ResortQuest of Florida in Miramar Beach, it can be difficult for a condo complex to become VA approved, but once it’s done it provides another lending option for buyers.
“With more and more military retirees moving to the area, it’s becoming increasingly important for complexes to become approved for VA loans,” she said. “Condo ownership is a more easygoing alternative to traditional home ownership that appeals to many of our retired veterans.”
However, getting VA approval may be difficult. “To begin with, the VA only approves mortgages for primary residences,” said Sherry Weaver, a mortgage specialist for National Bank of Commerce in Gulf Shores. “The vast majority of purchases along the coast are for second homes, vacation homes or investment properties. These purchases take VA financing out of the picture.”
Weaver said most mortgage brokers are so swamped these days trying to get mortgages and refinancing deals approved that they don’t have adequate time to devote to the VA paperwork. “There’s so much paperwork involved that it’s probably been a dozen or more years since I’ve tried to get a complex VA approved,” she said.
But, this is where Klein said condo owner associations come into the picture. “Association managers need to work on getting their complexes approved for VA financing just like they do for Fannie Mae. It shouldn’t be just the responsibility of the mortgage broker,” she said. “The questionnaire might be tough to complete, but once it’s done, you never have to worry about it again.”
Klein said in today’s climate of tougher regulations and requirements for mortgages, the more options that are on the table, the easier it is to match a prospective purchaser with a lender. “It’s just one more option that could mean the difference in making a condo sale,” she said. “With more retirees moving into the
Bookmark the permalink.Print Version