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Answers (7)
- Clay Branch, "Georgia Loans"
- Contributions:7839
Forget the description " townhouse", both a "townhome" and a " house" can be condo's if that is the land use. Just read the legal description.
- William Metzker, "MrLiam"
- Contributions:210
Yes.
Most people, including real estate brokers, don't know the difference and often call attached housing "condos" when it isn't, even in the listing data. They think that since there are common walls and one roof and C C&Rs that it's all the same. It's not. A condo owner owns the airspace inside the unit and shares ownership of the common area as a tenant-in-common. A townhome owner owns the ground under the home and other space. The HOA may have maintenance and aesthetic easements, but it doesn't own the land.
As you have surmised, this makes a big difference when seeking a loan. It also makes a big difference when buying home insurance.
Most people, including real estate brokers, don't know the difference and often call attached housing "condos" when it isn't, even in the listing data. They think that since there are common walls and one roof and C C&Rs that it's all the same. It's not. A condo owner owns the airspace inside the unit and shares ownership of the common area as a tenant-in-common. A townhome owner owns the ground under the home and other space. The HOA may have maintenance and aesthetic easements, but it doesn't own the land.
As you have surmised, this makes a big difference when seeking a loan. It also makes a big difference when buying home insurance.
- Michael Dolan, "BrokerPro"
- Contributions:277
If the home you want to finance includes ownership of the land, it is a true townhouse and for most lenders it makes no difference. You will get the same terms as a single family home.
It's important to check the details, however. If you have a property in mind, I can quickly search the county records and let you know officially if the property is a townhouse.
It's important to check the details, however. If you have a property in mind, I can quickly search the county records and let you know officially if the property is a townhouse.
- Clay Branch, "Georgia Loans"
- Contributions:7839
A single dwelling is a standalone single structure but can still have a land use of condominium. In other words, if the land use was coded condo it is a condo as far as lenders are concerned even if it is a house. If the legal description says condominium, then a lender will quote you based on condo guidelines. If it does not say condominium but instead says fee simple single family residence or single dwelling then you have more mortgage options.
- Jacques Ambron, "Jacquester"
- Contributions:36
whether the house is attached or not, you have to see the legal description used by the assessor. I have had cases of houses used as single family but had a legal description of 2 family and therefore the bank had issue.
- Janeese Jackson, "Janeese Jackson"
- Contributions:255
I would call a trusted mortgage broker to see what difference it might make, but a townhouse is considered "attached housing" to a Realtor. There are usually CC & Rs (covenants, conditions, restrictions) and by-laws for the complex that designate what is owner responsibility and what is Homeowner Association responsibility. The lender will most likely want that information and how much the HOA fees might be...
Janeese Jackson
Janeese Jackson
- Dave Sutton, "Dave Sutton"
- Contributions:45
I'm no lawyer (or a mortgage broker) but unless you're buying something that has more than one dwelling unit in it (4-plex, for example), it's a single family home.
WHEN SEARCHING LENDERS TO PURCHASE A TOWN HOUSE IS IT CONSIDERED A SINGLE FAMILY DWELLING
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