This week the VA released VA Circular Letter 26-09-19, which contained good news for Orange County VA loan borrowers trying to purchase a condo. The Circular clarified the VA position as to whether they would allow a VA loan on an FHA approved condo. Up until recently, VA had allowed VA financing on Orange County condo projects that were either on the VA approved list or the FHA approved list. However, at the beginning of 2010 FHA changed their condo approval guidelines, which resulted in VA changing their position and not allowing VA financing on FHA approved condo projects.
Why is This Good News for Orange County VA Loan Borrowers
This is great news for Orange County VA loan borrowers who are searching for a condo to purchase. The VA condo approval list in Orange County is somewhat limited. There are quite a few properties that are on the FHA approved condo list which are not on the VA list. Now that VA is allowing FHA approved condo projects for VA loans, Orange County Veterans have more properties available to them. There are a few guidelines and dates to keep in mind.
- VA can accept HUD/FHA/USDA condominium approvals if the project approval was dated prior to December 7, 2009.
- VA cannot accept HUD/FHA/USDA condominium approvals if the project approval was dated on or after December 7, 2009.
- VA cannot accept phases annexed into the project approved by HUD/FHA/USDA if the annexation occurred on or after December 7, 2009. If this is the case then VA will need to review an full project approval package for the entire project.
How Do I find VA Approved Condo Projects in Orange County, CA
It is still tricky to find out if a particular condo is VA or FHA approved if all you have is an address. But it’s not too difficult to get a list of approved FHA and VA condo projects within a city or zip code. Just go to the FHA or VA condo approval sites and search by whatever geographical location indicator you wish.
It can be very helpful to consult with an experienced Orange County VA Loan officer who can not only help you to find approved condo projects, but can also take care of the first step in buying a home, which is to get Prequalified and then PreApproved for the mortgage. Once PreApproved for a VA loan, you will be able to confidently make an offer on a home.
Authored by Tim Storm, an Orange County, CA VA Loan Officer MLO 223456– Please contact my office at Emery Financial Group for more information about an Orange County, CA home loan. 877-786-4243 x 7.
Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report.
877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com