18 Sep Purchasing a Condo or Townhome in Florida
Townhomes and condominiums can offer homeowners many benefits, including less maintenance and closer proximity to amenities. However, due to the way these homes are categorized by mortgage lenders, they may have loan requirements that are different from those of a single-family home. Our mortgage planners at Fairway Fort Lauderdale would love to work with you to discuss some different types of loans and determine which one would be best for your home purchase.
Mortgage lenders classify homes by the following types:
- Detached homes – Residents share no walls with another dwelling
- Semi-detached – Residents share a single wall
- Attached – Residents share more than one wall
As a general rule, homes with more shared wall space are considered to be a higher risk, which can translate to different interest rates or loan approval processes than a home with less shared wall space.
Properties are classified based on ownership of the space. Condo owners have no title to their land, but townhome owners own the ground directly beneath the home. Townhomes often have what is called a “zero lot line” because the owner does not own the yard. Some townhome owners have a small patio or fenced area, in which case the owner would own that small piece of land.
A condo owner owns the individual unit up to the walls but no exterior property. Condo owners sometimes purchase a stake in the community’s facilities, which the HOA is responsible for maintaining. Townhome owners purchase the entire unit, excluding exterior walls, and the land where the unit sits.
If you are interested in buying a townhome or condo in the Fort Lauderdale area, Fairway Fort Lauderdale would love to help! Call us today to learn more about the loan options available to you.