Condo Not Approved

A condominium must be acceptable to VA before any unit in the project can be eligible for VA loan guaranty. 

To avoid an unnecessary appraisal fee, a condominium unit should not be appraised unless there is a reasonable likelihood that VA or HUD will accept the project prior to loan closing.

Reference: See Chapter 16.

Ownership Not Fee Simple

Property involving a less than fee simple ownership (i.e., leaseholds, cooperatives, ground rental arrangements) is not eligible for appraisal without prior VA approval of the specific legal arrangement or project.  Submissions to VA Central Office (262A) must include

·   details of the ownership arrangement

·   copies of leases or other instruments creating the estate, and

·   recommendations of the VA office of jurisdiction.

Other Ineligible Properties

Reference: See Section 10.07.