veterans adm certification

Started by JimR24 • 6 replies • 1080 views

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JimR24
Posts: 397

Posted:

Hey everybody - there is some discussion about our condominium association applying for VA certification.

I was wondering if any of you have had any experience with the application process (i.e. what office to contact, time frame, certification process?). Also, if you are currently VA certified, would you recommend it to other HOA's?

What do you think?

oljim, in texas

KerryL1 (California)
Posts: 14,519

Posted:

We became certified a couple of years ago, 'ol Jim. The Board responded to a current Owner's request. He's been a longtime owner and wanted to refi his condo to buy out his ex-wife.

A couple of homeowners argued in open forum at this monthly board meeting that having VA cert would attract buyers with 0 $ down, who might not take care of their condos or follow the rules. One of these said, "They'd have no skin in the game." Rather disrespectful, some of us thought, especially the 2 vets on our board of 7.

But our sales prices $550,000 & up) and monthly HOA fees ($800 & up) + taxes are such that those wanting to buy here using VA most likely could not qualify for the monthlies.

We approved it; probably took about 2 months to get certified. There was a fair amount of paperwork to compile . We paid about $1,500 to a specialist in this area as selected from three bids as I recall, and we are (unlike FHA) certified forever. I'd say if your HOA is not too complex--I remember it's townhomes-- that your PM could do the application process. Sorry I don't remember more. At the time, I easily found a lot of info online.

As expected, the only folks using this has been for refis, so we see it as an extra amenity for our Owners.

RichardP13
Posts: 3,836

Posted:

Being approved for FHA and VA are two different beasts. I know of individuals who have bought or refinanced in HOA's that are NOT on the approved VA list. If you reviewed that list many of the approvals go back more than ten years and prior to the housing meltdown.

You also need to understand that using a VA loan is not just for a 0 down loans, this from personal experience as there are lending limits based on FHA guidelines.

Personally, I have no problem with a 100% financed loan, where the problem arose was with people stripping all of their equity and more and then the market reversing itself, (upside down). I purchase a home in 2008 and within two years lost $200K in value. Glad I didn't waste $100K on a down payment.

Lastly, I don't believe that an association should be in the process of trying to approve for a FHA Certification. Let the lenders or real estate foot the bill, as they are the ones making the profit, OR if the associations were forced to do so, maybe ask for a percentage of the sale of the home, for the troubles.

KerryL1 (California)
Posts: 14,519

Posted:

Are you replying to Ol' Jim, Richard?

If for me, I don't get your points as I nowhere say that VA & FHA are the same thing although we're FHA cert too. More rigid process and only lasts a year or two. In the process of changing though. The main reason we went ahead with it is that's ALMOST the only way to get a reverse mortgage. Some older folks here want to "age in place" and a reverse mortgage is one way to do that.

I have nothing against anyone using VA loans to purchases here-- I only said it was unlikely. I said there were a couple of grumpy old (non-vet) Owners who implied VA buyers are risky. My spouse and I purchased 2-3 homes with VA some years ago, too.

I'm well aware that years ago there was no FHA or VA requirement that entire condo complexes be certified, no more individual units. But maybe I miss your point.

JimR24
Posts: 397

Posted:

Appreciate the replies. I am continuing to research this and have been told that - for VA Certification approval - there can be no restrictions against rentals.

For your info and confirmation...

oljim, in texas

KerryL1 (California)
Posts: 14,519

Posted:

Interesting about VA not wanting to see any rental restrictions, Jim. We require a minimum of a 30-day tenancy and still were certified, so maybe the reference is to certain kinds of rental limitations?? I'm pretty sure you can find an answer to that online.

I think I do recall that prospective VA buyers must occupy the home.

JimR24
Posts: 397

Posted:

Quote:

Posted By KerryL1 on 02/12/2017 9:00 AM
Interesting about VA not wanting to see any rental restrictions, Jim. We require a minimum of a 30-day tenancy and still were certified, so maybe the reference is to certain kinds of rental limitations?? I'm pretty sure you can find an answer to that online.

I think I do recall that prospective VA buyers must occupy the home.

Yes Kerry - i thought that was interesting too. I am continuing to research the subject.

Thanks!

oljim, in texas

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