Dear Danna

Question from Melissa Q.

 “What is the difference between a Condominium

and a Townhome?




Danna’s answer  

This is a very commonly asked question and believe it or not,

there is a difference!”




  • Owner occupancy rate is vital to whether or not certain loans will be approved.

  • Ownership is not only in the condo, but also in the “GCE” (Gross Common Elements)

    • Example: Grounds, corridors, elevators (items which belong to all owners and consist of everything but the units in which people live.)

  • Lender will get a “Condo Cert” from the HOA.

    • The “health” of the HOA is a factor in the lending discussion, such as:

      • amount of units in default

      • general financial health

  • No land is owned in a condo

  • HOA fees are typically higher in a condo.  These fees are usually due to the following items:

    • building maintenance

    • common areas

    • recreational rooms

    • parking garages

    • pools

      • Pools can drastically increase HOA fees due to on-going maintenance and additional insurance

Town homes:

  • Town homes typically have a lot and block legal description.  (Example: L1, Blk2)

  • Town homes are easier to get a loan on

  • Occupancy rate is less important

  • There are not people above or below you

  • Town homes can include land ownership (Example: small yard)

  • HOA dues are typically cheaper due to fewer common areas



Thank you Melissa for submitting your question to

Dear Danna“!



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