VA loans · Townhomes and HOAs
VA loans for townhomes and HOA homes.
How a VA loan treats a townhome depends on how the home is legally set up: on its own lot, in a planned unit development or as a condominium. What changes in each case, what VA requires in every HOA and how to tell which setup a home uses, sourced from the VA Lenders Handbook and explained by Brian Huie, a U.S. Air Force veteran and Principal Broker and Realtor at Compass.
Three setups
Same front door, three legal forms
Own lot
Townhome on its own lot
Each home sits on its own legal lot, often through a unit lot subdivision, which cities in King County and other growth-planning counties must offer under RCW 58.17.060. No VA project approval is needed. Shared driveways usually come with recorded easements, which the title review covers.
PUD
Planned unit development
Homes on their own lots with an HOA that owns common areas. No VA project approval is needed, but the lender confirms title and HOA lien rules. VA appraises these on the standard residential report (Form 1004).
Condominium
Condominium townhome
The home is a condominium unit, even if it looks like a house. The project must be VA-approved first, and VA appraises it on the condominium report (Form 1073). How VA condo approval works.
Every HOA
What VA requires wherever there is an association
Only condominiums need VA project approval, but every home in a PUD or condominium must meet VA's title and lien rules. The lender is responsible for checking them on each loan.
| Title | The estate must be fee simple, with limited exceptions, and free of unreasonable restrictions on use and occupancy. |
|---|---|
| HOA lien | Mandatory HOA assessments must be subordinate to the VA-guaranteed mortgage. |
| Notice of Value | VA's Notice of Value for any home in a PUD or condominium states that the lender is responsible for title and for the HOA's assessments being subordinate to the VA loan. |
VA's rules cover title and liens, not the association's finances. For a condominium or a newer community under Washington's common interest ownership act, the seller provides a resale certificate (RCW 64.90.640) with the budget, reserves, assessments and rules. How Brian reads a resale certificate.
How to tell
Which setup is this townhome?
Read the legal description
A condominium usually reads as a unit of a named condominium. A lot reads as a lot of a recorded plat or unit lot subdivision.
Check the HOA documents
A condominium has a recorded declaration that creates units. A PUD has covenants and an association that owns common areas. Some townhomes have no association at all.
Confirm with the title report
The preliminary title report settles it. Brian confirms the setup before an offer, so a condo approval question comes up early, not late in the deal.
FAQ
VA townhome and HOA questions
Does a townhome need VA approval?
Only when it is legally a condominium unit. Then the whole condominium project must be VA-approved. A townhome on its own lot or in a planned unit development does not need project approval.
Does VA approve HOAs or PUDs?
No. VA does not approve planned unit developments. The lender confirms that title meets VA requirements and that HOA assessments are subordinate to the VA mortgage.
Can a VA loan buy a townhome with no HOA?
A VA purchase loan can buy a townhome on its own lot with no association, as long as the buyer lives in it. The VA appraisal and minimum property requirements apply, as with any home.
Weighing a townhome?
Brian confirms how it is set up and what that means for a VA loan before you write an offer.
Sources
- VA Lenders Handbook (VA Pamphlet 26-7), Chapter 16: Common Interest Communities, Condominiums and Planned Unit Developments, U.S. Department of Veterans Affairs, page updated Aug. 2026.
- 38 CFR 36.4354, Estate of veteran in real property, Electronic Code of Federal Regulations.
- RCW 58.17.060, Short plats and short subdivisions (unit lot subdivisions), Washington State Legislature.
- RCW 64.90.640, Unit resales and resale certificate, Washington State Legislature.
General information as of October 2026, not legal or lending advice. VA, the lender and the title company decide eligibility and title questions.
Brian Huie
U.S. Air Force veteran
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