CONDO (lender issues) vs. TOWNHOME (lender issues): It seems like lately that ability to get financing for a condo has been more difficult. I know the difference between a condo and a townhome, but I wasn't until recently that I realized there were actually differences in how most lenders provided financing for each of them. I did some research with my preferred lenders and here is a list I came up with. Of course I don't know how all lenders offer financing nor how it is offer in other states, but I thought I would share what I have learned.
· Homeowners association needs to be Approved by lender
· There is an increase to the interest rate for loans with less than 25% down.
· Association fees are higher - due to exterior upkeep.
· Exterior repairs are made by the association and are subject to their terms and quality of work. You will have to wait unit all board members agree for the work to be done
· Once a community reaches a certain ratio of owner occupied to investment owned, financing again will become limited.
· Homeowners association does not need Approved by lender.
· Standard interest rates apply, no adjustment for property type.
· Limited association fees.
· You own the land plus the exterior of your unit. Repairs are done by you and/or the contractor of your choice. No one needs to approve who does your repairs.
· Ratio of owner occupied to investor held is not an issue.
Joy Daniels, GRI, ABR, CSP, e-PRO
JOY DANIELS REAL ESTATE GROUP, LTD
2793 Old Post Road, Suite 200
Harrisburg, PA 17110
(717) 695-3177 office - Call TODAY and let me help you find your dream home!
Joy@JoyDaniels.com - Email TODAY and let me help you find your dream home!
What is your home worth? Find out at MLS Market Snapshot