A VA loan finances a Navy Yard condo with no down payment and no monthly mortgage insurance, if the condo building is on the VA's approved list. Navy Yard sits beside the Washington Navy Yard, across the river from Joint Base Anacostia-Bolling and a short ride from the Pentagon.
Who can get a VA loan
The VA loan is a mortgage guaranteed by the Department of Veterans Affairs, available to:
- Active-duty service members
- Veterans (with qualifying service)
- National Guard and Reserve members (with qualifying service)
- Surviving spouses of veterans who died in service or from a service-connected disability
VA loan features
- No down payment required: eligible buyers can finance the full purchase price
- No monthly mortgage insurance: the VA guaranty replaces the PMI or MIP an FHA or low-down conventional loan carries
- No prepayment penalty: Pay off the loan early without fees
- No VA minimum credit score: each lender sets its own minimum score, for example 620
- Limited closing costs: The VA restricts which fees lenders can charge
VA funding fee
The VA charges a one-time funding fee of 2.15% for first use with no down payment. On a $500,000 loan the fee is $10,750, and it can be rolled into the loan. The fee is waived for veterans receiving compensation for service-connected disabilities, Purple Heart recipients and eligible surviving spouses.
VA approval for Navy Yard condo buildings
The building must be VA-approved
The VA requires that condo buildings be on its approved list. VA approval is separate from FHA approval: a building can be FHA-approved but not VA-approved, or vice versa.
The developer or the HOA applies for VA approval. Check each Navy Yard building on the VA list; a building is approved only if one of them applied.
How to check whether a building is VA-approved
- Visit the VA condo report
- Search by state and city
- Look for your building by name or address
- Verify the approval is current (approvals can expire)
Getting an unapproved building VA-approved
The HOA can apply for VA approval. Budget one to three months for the VA review and expect to supply:
- HOA financial documents (budget, reserves, delinquency rates)
- Legal documents (bylaws, CC&Rs, master deed)
- Owner-occupancy and rental data
- Evidence of adequate insurance
An offer can be made contingent on the building obtaining VA approval, and a motivated seller or their agent can help the HOA assemble the package.
Cash needed on a $500,000 Navy Yard condo: VA loan and conventional loan
A VA buyer brings closing costs only. The 2.15% funding fee ($10,750 on this loan) can be financed. A 5%-down conventional buyer brings $25,000 down plus closing costs and pays monthly mortgage insurance until 20% equity. The conventional down payment stays with the buyer as equity, so compare the two loans on monthly payment and cash to close.
VA Loan Limits in DC
As of 2026, there is no VA loan limit for borrowers with full entitlement (first-time VA loan users or those who have paid off a previous VA loan). You can borrow up to whatever a lender will approve based on your income and credit.
For borrowers with reduced entitlement (e.g., an existing VA loan on another property), entitlement is calculated against the county conforming ceiling, which for DC in 2026 is $1,249,125 (the national baseline is $832,750).
Steps to buy a Navy Yard condo with a VA loan
Step 1: Get your Certificate of Eligibility (COE)
The COE confirms your eligibility and remaining entitlement. You can request it through VA.gov, or a VA lender can pull it through the VA portal.
Step 2: Get pre-approved
Ask the loan officer whether they have closed VA condo loans and how they check VA building approval.
Step 3: Check the building's VA approval
Before touring units, check the VA condo report for the building.
Step 4: Make your offer
The seller receives the same proceeds regardless of your loan type, so the no-down-payment feature does not weaken the offer.
Step 5: VA appraisal
The VA orders its own appraisal to confirm the property meets Minimum Property Requirements (MPRs) for safety, sanitation and structural soundness.
Step 6: Close
If the building was not VA-approved when you made the offer, add the one-to-three-month VA approval review to your timeline.
VA occupancy rules, reusing the benefit and funding fee cost
Investment property is not allowed
VA loans are for primary residences only; you must intend to live in the unit.
Renting the unit out later
After establishing the property as your primary residence, you can rent it out if you receive PCS orders or otherwise relocate. VA requires you to move in within a reasonable time, normally 60 days of closing, and to have intended the home as your residence. No minimum stay is written into the rule. A PCS or job move after you have lived in the unit is an accepted reason to rent it out.
Using the VA benefit more than once
You can reuse your VA benefit after selling a previous VA-financed home, or hold multiple VA loans at once if you have remaining entitlement.
How the funding fee affects cost
A funding fee rolled into the loan raises the monthly payment. Whether having no monthly mortgage insurance offsets the fee depends on the loan amount and your down payment. Ask us to compare both loans for your purchase.
Next step: read the VA loans overview or get pre-qualified. It takes two minutes and does not pull your credit.
