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When closing a loan on a new condo or town home, is there a presale requirement that must be meet?

The Code 38CFR 36.4360a(c) of Federal Regulations establishes the requirements for presale for all VA condominium. This code mentions, “Current declaring or proposed construction in control. The purchaser who can be anybody except the declaring (who are committed according to the contract for the completion of the purchase) with having at least 70 percent of the entire number of flats constructed as per the projects, should execute a real sale agreements. Lenders should satisfactory certify the requirements of presale in advance for first unit loan for VA guaranty.”

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