source:
  type: guide
  id: va-m26-7-ch11-t12
  authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 11, Topic 12 — Condominiums
  description: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 11, Topic 12 — Condominiums.
  coverage_tier: operative
obligations:
- id: va-m26-7-ch11-t12-full
  canonical_id: va-m26-7-ch11-t12-full
  section: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 11, Topic 12 — Condominiums
  type: do
  tags:
  - regulator-direct
  - va
  - va-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: VA Lenders Handbook (VA Pamphlet 26-7), Chapter 11, Topic 12 — Condominiums
    source_class: va-handbook
    source_url: https://www.benefits.va.gov/warms/pam26_7.asp
    snapshot_id: faa7d8c84a0580f3
    fetched_at: '2026-05-23T01:53:53Z'
    content_hash: sha256:960cb068c0b142cd1bb4a0e38f29c6c5b725d24095781b92c663a83e9fd36263
    paragraph_quote: '12. Condominiums Change Date February 22, 2019 • This Chapter
      has been revised in its entirety. a. Condominium Development Accepted by VA
      All condominium units, including site condominiums and manufactured home condominiums,
      must be located in a condominium development that has been accepted by VA prior
      to loan guaranty. SARs receiving an appraisal for a condominium unit in a development
      that has not been at least conditionally accepted by VA may not issue the NOV.
      b. Avoid Unnecessary Appraisal Fee Ensuring that the condominium is accepted
      by VA before ordering the appraisal is recommended to avoid an unnecessary appraisal
      fee in the event that the condominium is not accepted by VA. c. Ineligible Property
      Types Condo-hotel properties where units are placed in a rental pool and “air”
      condominiums that do not have a homeowners association are not eligible for
      appraisal as these condominiums do not meet VA guidelines. If a question arises
      as to whether or not a condominium would be accepted by VA, VA acceptance should
      be requested (see subsection g of this Topic). d. HUD/FHA Review Process VA
      no longer accepts HUD/FHA condominium approvals as the condominium approval
      requirements differ from VA’s requirements. e. Spot Approvals VA does not perform
      “spot” approvals of individual condominium units within a condominium development.
      f. Condominium List Available Online A list of VA-accepted condominium developments,
      with any conditions needed for approval, and condominium ID numbers, may be
      found at https://vip.vba.va.gov/portal/VBAH/Home under “Featured Items” in “Condo
      Reports”. Continued on next page VA Pamphlet 26-7, Revised Chapter 11: Appraisal
      Report 11-17 12. Condominiums, continued g. Documents Needed for Review Lenders
      seeking VA acceptance of a condominium which has not already been reviewed by
      VA must establish a record for the condominium in WebLGY and upload the following
      documents in PDF format in this stacking order: • Declaration • Bylaws • Amendments
      • Plat Map • Rules and Regulations • Meeting Minutes • Budget • Special Assessment
      Letter • Litigation Letter • Presale Letter • Any additional documents h. Legal
      Review Results When the required documents are uploaded, the RLC will request
      a review by VA’s legal counsel. The RLC will notify the requester of the results
      of the review and update the status of the condominium in WebLGY. Continued
      on next page VA Pamphlet 26-7, Revised Chapter 11: Appraisal Report 11-18 12.
      Condominiums, continued i. Appraisal Requirements In most cases, the appraiser
      will prepare the appraisal on Fannie Mae Form 1073, Individual Condominium Unit
      Appraisal Report. Appraisals of manufactured home condominium units must be
      prepared on Fannie Mae Form 1004C, Manufactured Home Appraisal Report, with
      the details about the condominium development usually provided in the Project
      Information Section of the condominium appraisal form included within the appraisal
      report. Liquidation appraisals of condominium units must be prepared on Fannie
      Mae Form 1075, Exterior-Only Inspection Individual Condominium Unit Appraisal
      Report, if interior access was not provided. In the Condominium Appraisal Report,
      the appraiser will: • indicate which utilities are included in the monthly homeowners
      association fee, • comment on the adequacy of the monthly assessment, based
      upon the appraiser’s opinion of the adequacy of the project’s budget and a comparison
      to similar condominium developments, • recommend a fair assessment if the current
      assessment is considered inadequate, and • report any known pending litigation
      involving the subject condominium development or its homeowners association.
      j. Pre-sale Requirement For new condominium developments, a pre-sale requirement
      of 70 percent must be included on the NOV and satisfied prior to VA loan guaranty.
      k. Wood- destroying Insect Reports A wood-destroying insect inspection is not
      required on units in low-rise or high-rise condominiums (units are stacked vertically),
      unless the appraiser notes a potential infestation problem. For site condominiums
      and villa/townhome style condominiums where units are side by side, located
      in a “very heavy” or “moderate to heavy” zone, a wood-destroying insect inspection
      must be required on the NOV unless evidence of a treatment guarantee has been
      provided by the homeowners association. VA Pamphlet 26-7, Revised Chapter 11:
      Appraisal Report 11-19'
  judgment: false
