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!”

 

 

Condo:

  • 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“!

 

 

We will update this section on a regular basis and Danna will be answering your real estate questions!

If you have a real estate question for Danna, please submit your questions to

danna@thehinzgroup.com

and you may be featured on our website!

Bei problemen, die über die grenzen des fachbereichs hinausgehen, haben sie dennoch die möglichkeit, sich an die seminararbeit schreiben lassen zentrale beschwerdestelle brennpunkt lehre zu wenden.

The Hinz Group
Danna Hinz ABR, CDPE, GRI, IRES
The Hinz Group at RE/MAX Alliance
225 S. Boulder Rd. Suite #100
Louisville, Co. 80027
303-926-4021
303-901-3860
Face Book - The Hinz GroupTwitter - The Hinz GroupInstagram - The Hinz GroupYoutube - The Hinz GroupLinkedin - The Hinz GroupPinterest - The Hinz Group
The Hinz Group
Meggan Kramer
Meggan Kramer
225 S. Boulder Rd. Suite #100
Louisville, Co. 80027
303-506-5052
Meggan-Kramer
Send me a message
Transaction Coordinator
Meggan Kramer
303-506-5052
Mortage Calculator