VA Lender Handbook M26-7 Chapter 16 — Common Interest Communities, Condominiums and Planned Unit Developments

va-m26-7-ch16

VA Pamphlet 26-7 Chapter 16 governs VA loans in CIC, condos, and PUDs.

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source:
  type: regulation
  id: va-m26-7-ch16
  authority: VA Lender Handbook M26-7 Chapter 16 — Common Interest Communities, Condominiums and Planned Unit Developments
  description: |
    VA Pamphlet 26-7 Chapter 16 governs VA loans in CIC, condos, and PUDs.
obligations:
  - id: va-m26-7-ch16-condo-va-approved-before-guaranty
    canonical_id: va-m26-7-ch16-condo-va-approved-before-guaranty
    section: VA M26-7 Ch. 16 — Basic VA Requirements; Condominium VA-Approval Prerequisite
    description: |
      Condominiums (but not PUDs) must be approved by VA before any lots
      or units in the project are eligible for VA loan guaranty.
      [UNDERWRITER] must confirm VA project approval for the specific
      condominium before issuing the Notice of Value or requesting
      guaranty.
    type: do
    audit_question: For every VA loan secured by a condominium unit, can [UNDERWRITER] evidence that the condominium project itself was VA-approved before the unit was treated as eligible for VA loan guaranty?
    program_review: Does the program ensure a condominium project (but not a PUD) is VA-approved before any unit is treated as eligible for guaranty, with confirmation before NOV issuance / guaranty request?
    file_review: Spot-check condo loans; confirm VA project approval preceded treating the unit as guaranty-eligible.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: compliance_officer
    secondary_owner_role: underwriter
    cadence: per_loan
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - va
      - m26-7
      - ch16
      - condominium-approval
      - promoted
    primary_source:
      tier: 1
      authority: VA Lender Handbook M26-7 Chapter 16 — Common Interest Communities, Condominiums and Planned Unit Developments
      source_class: va-handbook-m26-7
      source_url: https://benefits.va.gov/WARMS/M26_7.asp
      snapshot_id: fa6bc474102677f3
      fetched_at: '2026-05-23T01:50:00Z'
      content_hash: sha256:94d5d69fd84d66a208d2f9f76ceac8b3879dde5fbf0e75e36e00ce879ee16f21
      paragraph_quote: 'condominium. Also, condominiums (but not PUDs) must be approved by VA before any '
      drafter_attestation: Copied verbatim from VA Handbook snapshot fa6bc474102677f3 (M26-7 Ch. 16 — Condominium VA-approval prerequisite) at 2026-05-23. Source PDF retrieved via Wayback Machine.
    promoted_at: '2026-05-23T02:16:49+00:00'
    promoted_from: va-m26-7-ch16-roundb-v1.yaml
  - id: va-m26-7-ch16-hoa-assessment-subordinate
    canonical_id: va-m26-7-ch16-hoa-assessment-subordinate
    section: VA M26-7 Ch. 16-A.01 — HOA Assessment Subordinate to VA Mortgage
    description: |
      When a property is located in a condominium or planned unit
      development, [UNDERWRITER] must ensure that any mandatory homeowner
      association assessment is subordinate to the VA-guaranteed mortgage
      (38 CFR 36.4351 / 38 CFR 36.4352).
    type: do
    audit_question: For every VA loan secured by a property in a condominium or PUD, can [UNDERWRITER] evidence that any mandatory HOA assessment is subordinate to the VA-guaranteed mortgage (consistent with 38 CFR 36.4351 / 36.4352), with corresponding documentation in the organizational documents or HOA declaration?
    program_review: Does the program ensure any mandatory HOA assessment on a condo/PUD property is subordinate to the VA-guaranteed mortgage (38 CFR 36.4351/36.4352), with supporting organizational-document/declaration evidence?
    file_review: Spot-check condo/PUD loans; confirm the HOA-assessment-subordination evidence in the organizational documents/declaration.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: compliance_officer
    secondary_owner_role: closer
    cadence: per_loan
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - va
      - m26-7
      - ch16
      - hoa-subordinate
      - 38cfr-36.4351
      - promoted
    primary_source:
      tier: 1
      authority: VA Lender Handbook M26-7 Chapter 16 — Common Interest Communities, Condominiums and Planned Unit Developments
      source_class: va-handbook-m26-7
      source_url: https://benefits.va.gov/WARMS/M26_7.asp
      snapshot_id: fa6bc474102677f3
      fetched_at: '2026-05-23T01:50:00Z'
      content_hash: sha256:94d5d69fd84d66a208d2f9f76ceac8b3879dde5fbf0e75e36e00ce879ee16f21
      paragraph_quote: 'When a property is located in a condominium or planned unit development, the lender must '
      drafter_attestation: Copied verbatim from VA Handbook snapshot fa6bc474102677f3 (M26-7 Ch. 16-A.01 — HOA subordinate) at 2026-05-23. Source PDF retrieved via Wayback Machine.
    promoted_at: '2026-05-23T02:16:49+00:00'
    promoted_from: va-m26-7-ch16-roundb-v1.yaml
  - id: va-m26-7-ch16-condo-org-documents-reviewed
    canonical_id: va-m26-7-ch16-condo-org-documents-reviewed
    section: VA M26-7 Ch. 16-A.03 — Condominium Organizational Document Review
    description: |
      Condominium organizational documents must be reviewed for compliance
      with VA regulations, and approved by VA before any lots or units in
      the project are eligible for VA loan guaranty. [UNDERWRITER] must
      obtain and review approval evidence before proceeding to guaranty.
    type: do
    audit_question: For every VA loan secured by a condominium unit, can [UNDERWRITER] evidence VA's review and approval of the project's organizational documents for compliance with VA regulations prior to treating any unit as eligible for VA loan guaranty?
    program_review: Does the program ensure condominium organizational documents were reviewed for VA-regulation compliance and VA-approved before any unit is treated as guaranty-eligible?
    file_review: Spot-check condo loans; confirm evidence of VA review/approval of the project's organizational documents preceded guaranty eligibility.
    judgment: false
    feeds: []
    workflow_phase: origination
    owner_role: compliance_officer
    secondary_owner_role: underwriter
    cadence: per_loan
    consequence: ''
    tags:
      - round-b
      - regulator-direct
      - va
      - m26-7
      - ch16
      - condo-org-docs
      - va-review
      - promoted
    primary_source:
      tier: 1
      authority: VA Lender Handbook M26-7 Chapter 16 — Common Interest Communities, Condominiums and Planned Unit Developments
      source_class: va-handbook-m26-7
      source_url: https://benefits.va.gov/WARMS/M26_7.asp
      snapshot_id: fa6bc474102677f3
      fetched_at: '2026-05-23T01:50:00Z'
      content_hash: sha256:94d5d69fd84d66a208d2f9f76ceac8b3879dde5fbf0e75e36e00ce879ee16f21
      paragraph_quote: 'Note: These documents must be reviewed for compliance with VA regulations, and approved '
      drafter_attestation: Copied verbatim from VA Handbook snapshot fa6bc474102677f3 (M26-7 Ch. 16-A.03 — Org docs review) at 2026-05-23. Source PDF retrieved via Wayback Machine.
    promoted_at: '2026-05-23T02:16:49+00:00'
    promoted_from: va-m26-7-ch16-roundb-v1.yaml
_promotion_history:
  - promoted_at: '2026-05-23T02:16:49+00:00'
    candidate_path: obligations\_remediation\_round_b_drafts\va-m26-7-ch16-roundb-v1.yaml
    candidates_promoted: 3
    candidates_skipped_existing: 0

Verbatim regulatory text (3)

Verbatim provisions from VA Lender Handbook M26-7 Chapter 16 — Common Interest Communities, Condominiums and Planned Unit Developments — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

VA M26-7 Ch. 16 — Basic VA Requirements; Condominium VA-Approval Prerequisite

condominium. Also, condominiums (but not PUDs) must be approved by VA before any

Source: VA Lender Handbook M26-7 Chapter 16 — Common Interest Communities, Condominiums and Planned Unit Developments · source URL · snapshot fa6bc474102677f3

VA M26-7 Ch. 16-A.01 — HOA Assessment Subordinate to VA Mortgage

When a property is located in a condominium or planned unit development, the lender must

Source: VA Lender Handbook M26-7 Chapter 16 — Common Interest Communities, Condominiums and Planned Unit Developments · source URL · snapshot fa6bc474102677f3

VA M26-7 Ch. 16-A.03 — Condominium Organizational Document Review

Note: These documents must be reviewed for compliance with VA regulations, and approved

Source: VA Lender Handbook M26-7 Chapter 16 — Common Interest Communities, Condominiums and Planned Unit Developments · source URL · snapshot fa6bc474102677f3