Property types

Buying a Chicago condo with a VA loan: how to check VA approval

Short answer

VA approved condos in Chicago are buildings whose legal documents VA has reviewed and accepted, and a VA loan can be guaranteed on a unit only in one of them (38 CFR 36.4360(c)). Search the building on VA’s condo report before you make an offer. If it is not listed, your lender can submit the association’s declaration, bylaws, budget and other documents to VA, and Illinois law requires the board to provide them within 10 business days of a request.

Last reviewed October 29, 2026 · Chicago VA Loans editorial team · How we check facts

How do I check if a Chicago condo is VA approved?

Open VA’s condo report and search Illinois, then Chicago.
Search by the association’s legal name and by street address. The legal name on the declaration (for example “1500 North Example Condominium Association”) is often different from the name on the listing.
Note the status VA shows for the project, then ask your lender to confirm it in VA’s lender system, WebLGY, before you sign a contract.
If the building is not listed, ask the listing agent whether the association has ever been submitted to VA, and read the next two sections before you make an offer.

What does VA look for in a condo’s declaration and bylaws?

VA reviews the condominium’s legal documents, not the individual unit. These are the rules in VA’s regulation that most often matter for Chicago buildings.

Provision in the condo documents	What VA’s rule says	Rule
Right of first refusal on unit sales	Not allowed if the declaration was recorded on or after Dec. 1, 1976; older declarations are reviewed under a separate rule	38 CFR 36.4362(c)(5)
Minimum lease term	A minimum initial lease of up to 1 year is acceptable	38 CFR 36.4362(c)(6)(i)
Other leasing limits (rental caps, leasing bans)	The rule allows no other prohibition or restriction on leasing, apart from age-based or housing-authority limits	38 CFR 36.4362(c)(6)
Assessment lien	Must be subordinate to the VA-guaranteed mortgage, except as provided in 38 CFR 36.4356	38 CFR 36.4362(b)(4)(iii)
Working capital in new or converted buildings	At least 2 months of estimated common charges per unit, plus an adequate reserve fund	38 CFR 36.4362(b)(4)(ii)
Developer control of the board	Must pass to owners no later than 120 days after 75% of units are sold, or after a reasonable period (usually 3 to 5 years for a single-phase building)	38 CFR 36.4363(a)(1)
Real estate taxes	Assessed and lienable against each unit, not the whole building; Cook County taxes each Chicago condo unit separately	38 CFR 36.4363(b)
Access to the unit	No restriction on an owner’s right to enter and leave the unit	38 CFR 36.4362(c)(3)

Rules as published in 38 CFR Part 36, Subpart B (last amended for these sections June 16, 2015). Your lender applies VA’s current guidance on top of the regulation, so ask them about any provision you are unsure of.

What if the building is not on VA’s list?

A condo project must be approved before any unit in it is eligible for a VA guaranty. The lender requests approval by creating a condo record in WebLGY and uploading the association’s documents. VA’s lender guide lists them in this order:

Declaration, bylaws and all amendments
Plat map
Rules and regulations
Meeting minutes
Budget
Special assessment letter
Litigation letter
Presale letter (for buildings still being sold)

In Illinois, most of these come from the seller’s resale disclosure. Under the Condominium Property Act, the board must provide the declaration, bylaws, rules, budget and reserve information, planned capital expenditures for the current and next 2 fiscal years, pending lawsuits and insurance coverage within 10 business days of a request. The board can charge the seller a fee of up to $375 (set in 2023 and adjusted each year for inflation), plus $100 for rush service within 72 hours (765 ILCS 605/22.1, as amended by P.A. 102-976, effective Jan. 1, 2023).

VA’s lender guide gives no review time. Ask early, and talk to your attorney about a financing contingency long enough to cover the review.

Which Chicago condo buildings run into trouble?

These examples are illustrations of how the rules above apply. They are not real buildings.

Example building	Issue	What to expect
Three-unit converted greystone, self-managed	Never submitted to VA; no formal budget or minutes	The association has to assemble the documents before the lender can submit them
Lakefront high-rise, declaration recorded in 1972	Right of first refusal in the declaration	Reviewed under VA’s rule for declarations recorded before Dec. 1, 1976
Loft building with a 2-year minimum lease	Longer than the 1-year minimum VA allows	Likely needs a declaration amendment before VA can accept it
Building with a cap on rented units	Leasing restriction not among the exceptions in the rule	Ask the lender before you make an offer
New construction, developer still controls the board	Declarant control and presale status	Lender submits a presale letter; control must pass to owners on VA’s timeline

Condo costs that affect your VA approval

Monthly assessment: counted in your debt-to-income ratio and residual income. How lenders qualify you.
Special assessments and reserves: the Illinois resale disclosure shows the reserve balance and planned capital spending for 2 fiscal years. Read it during attorney review.
Property tax: each unit has its own Cook County tax bill, and veteran exemptions apply to your unit. Illinois and Cook County help.
Funding fee and closing costs: the same as for a house. VA closing costs in Chicago.

Common questions

Can I use a VA loan for a condo in Chicago?

Yes, if VA has approved the condominium project. Check VA’s condo report before making an offer.

How do I get a condo building VA-approved?

Your lender creates a condo record in VA’s WebLGY system and uploads the declaration, bylaws, amendments, plat map, rules, minutes, budget and assessment, litigation and presale letters. VA reviews the documents against its condominium rules.

Can a condo with a right of first refusal be VA approved?

Not if the declaration was recorded on or after Dec. 1, 1976. Older declarations are reviewed under a separate VA rule (38 CFR 36.4362(c)(5)).

Can a Chicago condo with a rental cap get VA approval?

VA’s rule allows a minimum initial lease of up to 1 year and age-based or housing-authority limits, but no other leasing restrictions (38 CFR 36.4362(c)(6)). Ask your lender how VA treats the building’s cap before you make an offer.

Who pays for condo documents in Illinois?

The seller. The board may charge the seller up to $375, adjusted yearly for inflation since 2023, plus $100 for rush service within 72 hours (765 ILCS 605/22.1).

Sources

What will your VA funding fee be?

Enter a price and down payment to see the 2026 fee, or check whether you are exempt.

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An independent guide. Not affiliated with or endorsed by the U.S. Department of Veterans Affairs, and not a lender. General information, not legal, tax or financial advice.