Both VA and FHA Require Formal Condo Approvals; AlternativesMost agents and borrowers know that condo complexes need to be “FHA approved” before a unit within the complex can be purchased with FHA financing.

    What many don’t know, however, is that VA has the same requirement.

    VA and FHA do not unfortunately maintain the same list of approved condo complexes.

    You can find FHA’s list of approved complexes here, and you can find VA’s list here.

    When complexes are not VA or FHA approved (which is the case more often than not), buyers need to seek alternative financing.

    Conventional financing with only 3% down is available for condo financing up to the “low balance” loan limit of $484,350.

    And, conventional financing with only 5% down is available for condo financing up to the “high balance” loan limit (in “high cost” counties) of $726,525.

    While conventional financing is not as favorable as VA financing (with no MI and no down payment requirements) it is often more favorable than FHA financing.

    Hence, not being FHA approved is often not the end of the world. It is only a problem for buyers in need of FHA’s more flexible credit and debt ratio guidelines.

    Jay Voorhees
    Founder/Broker | JVM Lending
    (855) 855-4491 | DRE# 01524255, NMLS# 335646

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