“Effective immediately, site condominiums in the state of Michigan will be processed in the same manner as a single family detached residence. VA will no longer review legal documentation for site condominiums. Lenders will be responsible for ensuring that any site condominium proposed as collateral for a VA-guaranteed loan meet requirements for the state of Michigan… Program participants no longer need to obtain a VA condominium ID or submit condominium association documents into VA for approval of site condominiums. “
The Department of Veterans Affairs recently announced the above change to its process for guaranteeing loans in Michigan, which finally addresses a disadvantage that had existed for veterans in our state. Since many of Michigan’s developments with detached homes and lots separately owned by co-owners are subject to the Michigan Condominium Act and are referred to as “condominiums”, the federal government’s red tape machine had long treated site condos in our state no differently than condominiums with shared walls and/or floors/ceilings. Fortunately, this issue has now been addressed, and our veterans should have a much easier time obtaining VA loan guarantees in our state going forward.
Kudos to the National Association of Home Builders for their work in educating VA officials about this issue.
