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On May 17, VA issued a Circular which included some good news for Orange County condo buyers planning to use VA financing. VA reversed an earlier announcement and will again allowing financing on FHA approved condominium projects. Orange County has a high concentration of condo projects, especially in cities such as Irvine, Aliso Viejo, and Laguna Niguel. However, there are plenty of condo’s affected positively by this announcement in north Orange County cities such as Placentia, Anaheim, and Orange.

The VA loan program is a great way for Orange County Veterans to purchase a home. No down payment is required (in 2010) on purchase prices up to $593,750. This is one of the only $0 down loan programs left.

VA Circular Letter 26-09-19 to Benefit Orange County VA Borrowers

On May 17, 2010, VA Circular 26-09-19 was issued. (A VA Circular is similar to an FHA Mortgagee Letter) This Circular made clear what the VA’s stance is on acceptance of FHA approved condo projects for VA financing. In particular, the following was clarified.

• VA will accept FHA and USDA approved condominium’s as long as the project was approved prior to December 7, 2009.
• VA will not accepted FHA and USDA approved condominium’s if the project was approved on or after December 7, 2009.
• VA will not accept phases annexed into the project approved by FHA and USDA if the annexation occurred on or after December 7, 2009. In this situation VA will need to review a full project approval package prior to approving the project.

How to Find FHA and VA Approved Condo Projects in Orange County

Both FHA and VA have websites for checking for approved condo projects. The easiest way to find approved projects is by zip code or city name.  For example, if you are looking for VA approved condo projects in the city of Placentia, at the VA website choose  the summary detail for both condo’s and PUD’s.   Choose the Los Angeles regional office in the drop down menu. Then, type  ”Placentia”  in the city field, and choose “California” in the state drop down menu. Choose to look up “Approved” projects. You will be given a list of approximately 43 condo projects. Here’s where it gets tricky. Not all the results show a condo name. Many, or actually for Placentia, most, simply list a Tract number. This is where the help of an Orange County VA Loan expert will come in handy. Your VA loan officer can work with your Orange County real estate agent to narrow down the list. Also, your loan officer will help to get you PreApproved for an FHA or VA loan.