You can buy and finance a condo with a no money down VA loan. The VA is perfectly fine with the property type and condos can be a great entry level purchase for a veteran or active duty’s first home. As with single family homes, condos fill a wide range of price points. Condos have some advantages and some perhaps disadvantages but if you’re wondering what condos are and what they’re not, here are a few things to consider.
With a condo, you own the interior space and share the common areas equally with the other owners. Common areas are things such as a swimming pool, sidewalks and gardens and workout facilities. When I say you “own” them it doesn’t mean you can sell part of them but you along with the other owners pay monthly dues to help maintain them. And speaking of maintenance, when the air conditioning system breaks down or the roof leaks, it’s not your responsibility to fix. The condo association pays for the maintenance and repairs so you don’t have to. There are monthly homeowner’s association dues that help pay for property management and maintenance.
Condos are regulated by Covenants, Conditions and Restrictions, or CC&Rs. These are the basic ground rules that property owners must follow. Sometimes the rules can be a bit on the harsh side such as not having more than two chairs on the deck or a specific color of drapes. Most aren’t that rigorous and you do have the right to review the condo rules before making an offer, just in case you decide you can’t live in a condo that has certain regulations.
Most condos are located in urban areas which provide access to shopping, groceries and other amenities. Some are located in such a convenient location that an automobile is rarely needed. One final caveat, the condos must be approved by the VA before a VA loan can be placed, and provides an online resource to see whether or not a condo project is currently approved.