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!