The VA clarified it’s stance on allowing financing on FHA approved condo projects, which will help Orange County, CA condo buyers wishing to use VA financing. VA financing provides one of the last true $0 down loan programs for eligible Veterans. In Orange County, CA, an eligible VA loan home buyer can purchase a property with $0 down up to a purchase price of $593,750 (Orange and Los Angeles counties 2010 VA Loan Limits for 100% financing). Orange County is considered a “high cost” by the area by the VA and does have a high concentration of condo projects.
VA Circular 26-09-19
On May 17, 2010, VA issued Circular 26-09-19, which clarifies its stance on when it will allow or not allow VA financing on condominium projects approved through FHA, HUD, or USDA.
- VA will allow financing on a condo project if the HUD/FHA/USDA project approval was dated prior to December 7, 2009.
- VA will not allow financing on a condo project if the HUD/FHA/USDA project approval was dated on or after December 7, 2009.
- VA will not accept phases annexed into the project approved through HUD/FHA/VA if the annexation occurred on or after December 7, 2009. If this is the situation, the VA will need to review the full project approval package before allowing financing.
This is good news because the VA Condo approval list in Orange County is fairly limited. By allowing financing on projects approved through FHA prior to December 7, 2009, which includes nearly all projects on the FHA list, the opportunity for an Orange County Veteran to find a home to buy (and with $0 down) is greatly increased.
VA Approved Condo’s in Orange County
The tricky part is to actually find FHA and/or VA approved condo’s in Orange County. Not all condo’s are approved, or even “approvable”. Before making an offer you will definitely want to know if VA financing is even possible. Assuming the Orange County Veteran has already been PreApproved for a VA loan, they will want to narrow their condo search to properties on the VA or FHA approved list. FHA and VA both have websites for checking status of project approvals. Keep in mind some projects may have never been submitted for approval, so not all condo projects are shown. Also, just because a property “looks” like a condo doesn’t mean it “is” a condo. Some properties have attached walls and have Home Owners Associations, but were not built as a “condo” form of ownership. These properties do not need project approval. Also, there are detached condo’s, or “site” condo’s, which, even if in an unapproved project are eligible for FHA or VA financing. Finding an Orange County VA Loan expert who can help with Prequalification and PreApproval will be a good place to start the home search.
Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact my office at Trust One Mortgage for more information about an Orange County, CA home loan. 877-786-4243 x 7. www.OCFHALoans.com
Contact us for your Orange County FHA Mortgage:
Call our office today and see how we can help you and your family. Ask for your Free First Time Home Buyer Report. 877.786.4243 x 7 | tstorm (at) ochomebuyerloans.com *Trust One Mortgage Corporation is licensed and supervised by the California Department of Real Estate (“DRE”), License # 01087829
We are not the FHA, VA, USDA, HUD or any other government organization. The content on this blog is intended for information purposes only. 
