VA loan on a condo

by Joe
(Aurora Co)

Can I use my VA loan on a condo that has 49% owner occupied. The Condo is in Aurora Co at 4351 S Andes Way. I think it is Lakepoint condos. The seller was not sure about it.

Thank you
Joe

===ANSWER===

Hello Joe;

Thank you for asking a question on VA loans.

When you say 49% occupied I'm assuming you mean the entire project is under construction still and only 49% sold and occupied.

If this is the case, I believe this may be a problem. As I remember, the project as a whole has to be 70% occupied before the VA loan programs or the FHA loan programs will do mortgages in the project.

Now if by 49% owner occupied you mean that the other 51% of the project is rented, this may also present a problem.

The reasoning behind this is that the lender is going to get the mortgage guaranteed by VA and they want a high percentage of the condos owned to protect their investment. It is perceived that a low percentage of owner occupancy is a high risk.

You will need to talk to a VA lender to be sure.

Regards,

Jeff