I have been searching for a house for a long time and for what I can afford + the size of a home I need there is next to nothing on the market.

I found a Condo that is a perfect match. This is a 4 unit condo each unit is detached. There was originally a HOA fee of $50 some ware along it got dropped.

My realistate agent is trying to find a way to reinstate the HOA. I don't fully understand it my agent says the HOA has something like a certification or something that qualifies it for VA or FHA. So even if we are able to reinstate a HOA we need to get that cert as well.

On top of that the owners of the condo are going into foreclosure they haven’t made a payment in about a year.

I would happily assume the loan. My issue with assumption is being approved by the current lender. If I was to assume the loan that would put my debt to income ratio at 50% and I don’t think the bank will accept my application like that.

Any suggestions? Or could you help me understand why I couldn't just hire a VA appraiser and make an offer?

The underwriters (people who approve) for the VA and FHA loans will not approve a loan for a condo unless is complies with certain regulations. One of those regulations is a certified condo association. If the condo association isn't certified and can't provide that certificate, the VA and FHA underwriters will not approve the loan.

As for assuming the loan, do you realize how high a 50% debt to income ratio is? That number is based on your "pre-tax" income. You will actually have very little money left after making your mortgage payment each month.

If your real estate agent can't get the condo approved for a VA or FHA loan then I suggest that you find another place.