Can townhomes have a va or fha loan?

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Tessie Frami asked a question: Can townhomes have a va or fha loan?
Asked By: Tessie Frami
Date created: Tue, Dec 29, 2020 2:47 PM
Date updated: Thu, Jun 23, 2022 12:09 PM

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Video answer: Va loan, condos and approved condos

Va loan, condos and approved condos

Top best answers to the question «Can townhomes have a va or fha loan»

An entire condominium (condo) complex needs to be FHA or VA approved before a unit within the complex is eligible for FHA or VA financing. Townhomes and PUDs (Planned Unit Developments) do not need to be FHA or VA approved, even if they are part of a complex comprised of contiguous units that look just like condos.

Video answer: How to tell if condos are fha and va approved

How to tell if condos are fha and va approved

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A townhouse must meet the FHA's minimum standards for property condition and local loan limit restrictions. Townhomes typically belong to homeowners associations, or HOAs, which also must gain FHA...

However, not all townhomes meet FHA eligibility guidelines. Many townhomes are classified as single-family homes, in which case the FHA treats the properties the same way it treats standard houses. However, if the legal description of a townhome describes it as a condo, then the owner may not qualify for an FHA-backed loan.

Prefabricated or modular homes can also be financed through VA loans. These homes are built in sections at a factory and reassembled on-site by a contractor. Since modular homes are more likely to appreciate than manufactured homes, it’s usually a little easier to find an accommodating lender for these homes.

As you can see from the above, FHA loans are possible for town homes. In some cases, special rules are in place regarding town homes. For example, FHA 203 (k) rehab loans have specific requirements for approved improvements on the property where town homes and town home-style condo units are concerned:

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Video answer: Fha loans and condos

Fha loans and condos