Several years ago, FHA changed the way that they view Site Condos as the relate to lending. Unfortunately, the VA has not changed their point of view. The VA treats Site Condos just the same way that they do traditional condo projects. For all intents and purposes, Site Condos are no more than a single family home with a Home Owners Association and some common areas. NOTHING at all like a traditional condo project. Recently I have run into challenges with getting Site Condo developments approved through the VA. They have a list of 27 items that are required to send in for the approval of the project and the buyers loan. However, there are many other things that they look for that is not printed ANYWHERE in their guidelines. Fortunately, I have a fabulous lender that knows VA front, back and sideways and we were able to get my buyers into other loan products so they could still close on their home. My lender and I have started the paperwork trail to try to get the VA to change the way that they view Site Condos and to follow the same FHA guidelines for lending on these homes. Common sense seems to not be something that they understand there, so it is literally taking an act of Congress to get this looked at. Meantime, out service men and women are the ones who are having to pay the price. I realize that in many parts of the country, Site Condos are not an issue. In Northern Michigan, they are a huge part of our community and they are an issue to our military personnel when they try to use the benefits that they so rightfully deserve.
I would love to know if anyone else out there is having any challenges with VA lending as it relates to Site Condos. Buyers beware, make sure you are represented by someone who is very educated in the entire VA lending process before you start down that road to use your VA loan benefits.
In the meantime, I am trying my hardest to make enough noise to get our Government to take a look at this silly rule they have and change it.
Thank you to all of our service men and women who are currently serving and to all of those who have served our country. I truly appreciate your service.
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