VA amended requirements for processing site condominiums in Michigan. A site condominium is defined as a single family totally detached dwelling (no shared garages or any other attached buildings) encumbered by a declaration of condominium covenants or condominium form of ownership. Effective immediately, lenders must process site condominium loans in a manner similar to a single family detached home. VA will no longer review legal documentation for site condominiums. Lenders must ensure that any site condominium proposed as collateral for a VA-guaranteed loan meets requirements for the state of Michigan. In addition, per the amended requirements: the condominium unit must still be held in Fee Simple; lenders are no longer required to obtain a VA condominium ID, or submit condominium association documents to VA for approval (however, lenders must still identify the property as a condominium when requesting an appraisal); and lenders must submit a letter through WebLGY (on company letterhead) that states that the site condominium meets VA requirements. Note that the amended requirements are a regional variance for the state of Michigan only. All other geographical areas are unaffected by the amended requirements.
VA
VA Offers 40-Year Loan Modification Option
VA issued Circular 26-24-08 to offer a 40-Year Loan Modification option to assist borrowers in reaching an affordable payment in the current environment of rising
April 26, 2024
