PUDs/Condos

1.  Where can I find a list of VA approved PUDs and Condominiums?

A list of VA approved PUDs and Condominiums can be found at:

http://condopudbuilder.vba.va.gov/2.2/frames.html

Note:  No new PUD entries have been added to the list since VA discontinued its review and approval of PUDs and the responsibility became the lender's.

2.  What is needed for VA to approve a PUD or condominium?

VA no longer reviews PUD organizational documents to determine acceptability.  The lender is responsible for ensuring that both title and lien-related VA regulatory requirements are met.  Refer to VA Lender's Handbook, Chapter 16; Section 16-A.01 lists the applicable requirements.  Condominium organizational documentation must be submitted for review to the C&V section, at the VA Regional Loan Center having jurisdiction.  Refer to Lender's Handbook, Chapter 16; Section 16-A.03 lists the required documents.

3.  Must a condominium project be approved by VA before a single unit is eligible for VA Loan Guaranty?

The condominium must be approved by VA before any lots or units in the project are eligible for VA loan guaranty.

4.  When closing a loan on a new condo or town home, is there a presale requirement that must be meet?

VA condominium presale requirements are established by the Code of Federal Regulations, 38CFR 36.4360a(c).  The code states "Proposed construction or existing declarant in control.  Bona fide agreements of sale must have been executed by purchasers other than the declarant (who are obligated contractually to complete the purchase) of 70 percent of the total number of units in the project.  Lenders shall certify as to satisfaction of the presale requirement prior to VA guaranty of the first unit loan..."