FHA & VA Loans in the San Bernardino Mountains: What Really Qualifies

by Theresa Grant

Can I Use FHA or VA Financing in Mountain Towns?

By Theresa Grant, Real Estate Broker | Team Owner | Theresa Grant & Associates Real Estate Partners

Yes—FHA and VA loans can be used in the San Bernardino Mountain Communities, including Lake Arrowhead, Crestline, Running Springs, Big Bear, and Twin Peaks. The key is making sure the property meets program standards that are common in mountain areas: access, condition, utilities, and—these days—insurability.

Snippet Answer: FHA and VA loans work well in our mountain towns for primary residences and qualifying 1–4 units, as long as the home meets program guidelines for year-round access, safety, and basic utilities. Condos, cabins, and even some manufactured homes can qualify with the right approvals and documentation.

What the Property Must Have (Common Mountain Issues)

Year-round access: An all-weather road (paved or properly maintained gravel). Private roads generally need a written maintenance agreement covering snow removal.
Safe, sound, sanitary condition: Roof, decks, stairs, railings, and retaining walls must be secure; no peeling paint on older structures; no obvious hazards.
Utilities: Functional heating, electrical, and plumbing. Wells and septics are acceptable with proof of adequacy; VA typically requires a water test and clear septic report.
Insurability: You must be able to obtain homeowners insurance (often CA FAIR Plan + a wrap policy in high-fire zones). Lenders require proof before closing.

Condos, Townhomes, and HOAs

FHA: The project must be FHA-approved, or you may qualify for Single-Unit (“spot”) Approval if the HOA’s financials and owner-occupancy meet standards.
VA: Condominiums need VA approval; HOAs should be financially stable with adequate reserves and no major pending litigation.

Cabins, ADUs, and Manufactured Homes

Classic cabins can qualify if they have standard heating (not solely wood-burning) and meet safety criteria.
ADUs: Rental income from a legal ADU may help on FHA for 2–4 units (documentation required).
Manufactured homes: Must have HUD tags, be on a permanent foundation, and typically require an engineer’s foundation certification.

Occupancy & Appraisals

Primary residence required for both FHA and VA. VA allows future occupancy within a reasonable time (often within 60 days) and certain spouse/active-duty exceptions.
Appraisals rely on local mountain comps—snow load roofing, slope, and forest adjacency are normal here. Pricing and condition must match what’s typical for our neighborhoods.

Bottom Line

FHA and VA financing are absolutely doable in Lake Arrowhead and the surrounding mountain communities. My team navigates private roads, well/septic, HOA approvals, insurance hurdles, and local appraisals every week—so you can buy with confidence in our four-season market.

Source names for verification: HUD Single Family Housing Policy Handbook 4000.1; VA Lenders Handbook (Minimum Property Requirements); HUD/VA Condo Approval Guidelines; California FAIR Plan Association.

Theresa Grant is a Real Estate Broker in the San Bernardino Mountain Communities and the Real Estate Columnist for the Alpine Mountaineer Newspaper. She can be reached at (909) 442-1345.