In processing VA condo approvals, leasing restrictions are typically the limiting factor of whether a condominium project is eligible for approval. FHA has some tough regulations on allowable leasing restrictions, but the VA allows even fewer.
From a leasing restriction standpoint, if FHA’s tolerance is comparable to a picky eater, the VA’s tolerance would be like someone living only on Mac N Cheese. …But for good reason.
1. Right of prior approval of either a buyer or tenant. Like FHA, the VA doesn’t allow third-party or Board approval of buyers and tenants. This violates a unit owner’s ability to dispose of the unit as the owner sees fit. For FHA, this is called “free-assumability”.
2. Any minimum lease term in excess of 1 year.
3. Leasing restrictions which amount to unreasonable restrictions on use and occupancy of a unit. This language is fairly vague; what constitutes “unreasonable restrictions”? It was written that way on purpose.
Numbers 2 and 3 above fall into a similar category and have the same basis. The VA doesn’t allow any type of restriction that can impede the Veteran, Reservist or Active Service Member from leasing the unit in the case of deployment. This is the main impetus behind the VA’s strictness regarding leasing restrictions.
These may rule out many condominium projects nationally, but it protects our soldiers and Veterans in the case they are mobilized to protect our nation. I have no problem with this.
For the remainder of the year, ReadySetLoan Condo Team LLC is offering free processing for VA condo approvals for all condominium clients who retain us for an FHA condo approval. If you have questions about VA or FHA condo approvals, please contact us for a free consultation.
The Condominium Project Approval Team at ReadySetLoan is dedicated to helping condominium projects across the nation to obtain their approvals with FHA and the VA or become recertified with FHA. We have assisted nearly 200 condominiums and we can help your association.
ReadySetLoan is an active member of the Connecticut and New England chapters of the Community Associations Institute (CAI) and is a frequent contributor to Common Interest Magazine as an expert in FHA/VA condominium project approvals.
Please contact us with any questions regarding FHA or VA condominium project approvals. You can email me at firstname.lastname@example.org or call me at 404-433-4565. I will be happy to answer any of your questions.
FHA/VA Condo Approval Specialist
404-433-4565 Cell Phone
860-644-3772 Fax Phone
Check out our article in Common Interest magazine on page 19!