California offers a wide variety of homes to satisfy any buyer’s desires. VA loan buyers need to focus on certain types of properties so they can get a final VA Loan Approval. Condos, manufactured homes, co-ops, single-family homes — California real estate has incredible selection.
Understanding how VA Loans work is your first step towards buying your dream home. Knowing how your credit and income qualification apply to the VA Loan process and talking it over with an experience loan officer is crucial. A VA specialist loan officer will be able to tell you how much you qualify for as well as the VA Loan Limits for California and what properties are eligible.
The single family home (SFR) is the bread-and-butter of the VA loan program, but many other kinds of homes can also receive VA approval. This post will help guide military buyers to understand which homes are eligible for VA loans.
Most condos and townhomes are eligible for VA financing. Make sure the entire condo or townhouse complex is VA approved before you can obtain a loan for one particular unit within the complex.
A good place to start is VA’s current list of approved complexes or ask your lender to determine approval status. If the condo isn’t on the “approved” list, your buyer’s lender can request approval directly from the VA. This can be a complicated process, so make sure you are working with an experienced VA lender, like Right Choice Mortgage, who can walk you through the process.
The VA will review the condo’s organizational documents, title, parking availability and homeowner’s association policies. This can take some time.. Be aware about the possibility of delays when pursuing a condo that isn’t on the VA’s approved list.
Manufactured homes, better known as mobile homes, are eligible for VA financing. Typically lenders are a little more strict on depreciating properties. The manufactured home must meet the following conditions to earn VA approval:
• Must be properly affixed to a permanent foundation
• Double-wide homes must be at least 700 square feet
• Homes must have permanent eating, cooking, sleeping and sanitary facilities
Modular or prefabricated homes can also be financed through VA loans. These homes are built in sections at a factory and reassembled on-site by a contractor. Modular homes are more likely to appreciate than a manufactured homes, so guidelines for lending are not as strict as for a Manufactured Home.
In order for a modular home to qualify for a VA loan, it must be attached to a permanent foundation. The modular home must also have been built according to HUD guidelines or receive certification from the state in which it was constructed.
Obtaining a VA construction loan is tougher than most. The builder, the plans and the building sites must be VA-approved. Three different inspections are required. The builders must provide at least a one-year warranty on homes that are built.
New construction loans involve plenty of extra paperwork and complications can develop. A better way to go for most is to just obtain a conventional construction loan (NOT VA) to finish the property. Once the home is complete, you can re-finance with a VA Loan.
Vacant land is a no-no for VA financing. VA loans can only be used for existing homes and homes under construction.
Co-ops are not eligible for VA loans. VA financing for these shared-ownership properties expired in December 2011, and at the time of this writing, has not been renewed.
If you would like more information on getting pre-qualified for a VA loan in California,
Please Call Jackie at Right Choice Mortgage 949 600-0944