Townhouse Condo or Single Family?

[Yankee_in_TX]

I know that it is harder to get great financing on a townhome or condo (thanks to you guys).

What do lenders consider not a townhome or condo? That it is freestanding? A certain distance between units? Or is anything built that has 6 or 8 twins always going to be a townhome or condo regardless?

[EMME]

I know that it is harder to get great financing on a townhome or condo (thanks to you guys).

What do lenders consider not a townhome or condo? That it is freestanding? A certain distance between units? Or is anything built that has 6 or 8 twins always going to be a townhome or condo regardless?

You will definitely get better answers than mine, but I think they share a wall or walls to be considered townhouse or condo for financing reasons. And I think the type of wall shared and whether they wall goes up to the roof or just to the top ceiling makes a difference, at least for insurance purposes.

[longhornguy]

Condo you don't own the land. Townhome you do. Simple as that. When you get financing, a survey will confirm that.

The simplest way it's been explained to me is that you basically own the "Air" and the "paint on the walls" in a condo.

It makes sense that most highrises are designated as condo's.

[diggity]

It just depends on how the property was originally platted. It has nothing to do with attached walls or anything like that.

The best way to determine whether it's a condo is to check the tax records. Condos will generally include the unit and a percentage of the land and common area.

Here's an example of a condo legal description:

UNIT 145 BLDG Q

.00857 INT COMMON LAND & ELE

RIVER OAKS PLACE CONDO AMEND

Fee simple town homes shouldn't have a higher interest rate than single family homes as far as I know.

[EMME]

It just depends on how the property was originally platted. It has nothing to do with attached walls or anything like that.

The best way to determine whether it's a condo is to check the tax records. Condos will generally include the unit and a percentage of the land and common area.

Here's an example of a condo legal description:

Fee simple town homes shouldn't have a higher interest rate than single family homes as far as I know.

I'm teachable!

[Yankee_in_TX]

Fee simple town homes shouldn't have a higher interest rate than single family homes as far as I know.

Hrrrm, not at all what we were told. But we're meeting with our bank (as opposed to real estate broker's lender) this weekend, hopefully they're be able to explain or dispel the misinformation.

*edit* Holy Cow!

'.0278 INT COMMON LAND & ELE

------------ CONDO AMEND'

Shame on me! I had no idea a home we almost bought was not fee simple. Thanks a lot guys, that had never crossed my mind. I will check this going forward in our home buying endeavor.

Edited May 14, 2009 by Yankee_in_TX

[Scott08]

I almost bought a condo/townhouse a few years back but got scared off by the insurance. A condo association is treated as a commercial property would be, with none of the legislative oversights a homeowner receives. If a condo association's insurance skyrockets for some reason, then so does your share of it. Much simpler in my mind to stick with single family or fee simple townhomes.

[Yankee_in_TX]

Saw many more over the weekend.

HHN was great, because they are their own broker I walked in the door, said I am an attorney and will be representing myself, she said tell me how you want the 4% (which was a drastic change from UL's acting like I was crazy for wanting my cut).

Haven't necessarily gotten that from an agent when the broker is not the builder, but haven't really asked yet.

Thanks for all the pointers everyone.