Home Selling in 07202>Question Details

Brownsugaribm, Home Buyer in 07202

Is it more difficult to purchase a townhouse/condo versus a single family home?

Asked by Brownsugaribm, 07202 Wed Apr 13, 2011

will the taxes be separate from the price of the condo/townhouse or rolled into one

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Thank you :) I know how to unfollow and will do that. Just thought since the original tread was sooo long and had so many answers it didn't need to be rehashed again.
0 votes Thank Flag Link Mon Nov 4, 2013
I can see the date of when it was asked. If you dont want to get notifications for it, you can go to the question and hit "unfollow question" and you wont get notified.
0 votes Thank Flag Link Mon Nov 4, 2013
yes, I can see it too. I answer when It concerns me that people give misinformation on new / old questions -Or- just spew partial general information with no regard.. especially on old answers.
Flag Mon Nov 4, 2013
Folks this question was asked April 2011 !!!!!
0 votes Thank Flag Link Mon Nov 4, 2013
Yes, it's more difficult bc there's a condo questionnaire which must come back with 0% delinquencies (when purchasing with FHA mortgage) and i believe 15% delinquencies if conventional. Also, ONE person cant own more than a certain percentage of the building.
Also, if it's a condotel, that's nearly impossible to finance in today's market.
If there's a lawsuit against the association, it also becomes more difficult.

The above all apply if you're trying to FINANCE. If you're paying cash, then it shouldnt be more difficult.
0 votes Thank Flag Link Mon Nov 4, 2013
there is no "real difference" - the questions was asked in 2011...
Flag Mon Nov 4, 2013
If you are paying cash no real difference. Financing for some condo units could be very limited if not FHA approved.
0 votes Thank Flag Link Mon Jul 22, 2013
If you are paying cash no real difference. Financing for some condo units could be very limited if not FHA approved.
0 votes Thank Flag Link Mon Jul 22, 2013
If you are getting a fha loan its way easier to buy a single family house than a condo, most condo are not fha approved
0 votes Thank Flag Link Mon Jul 22, 2013
Hi there, The FHA approval piece is very important for condo financing, in fact, essential. Several years ago the banks stopped allowing spot approvals and so the development overall must be approved for FHA financing. What I've found recently is that several developments have allowed their FHA approval to lapse and even with offers to help them resecure it, they resist so while doable, getting approval when it has expired should be viewed a long shot or at minimum, something that will delay you. Great help from Mary in sending along the link so you can see what is approved and what is not.

Some communities appear condo - but are fee simple ownership, so be sure to ask the question if you are a FHA borrower.

Best,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
0 votes Thank Flag Link Wed Nov 16, 2011
Forgot....the taxes are handled the same as a single family...you either roll them into your mortgage payment and pay monthly, or you can pay them on your own by the quarter.

Your mortgage broker can help you decide which option is best for you.
0 votes Thank Flag Link Tue Nov 15, 2011
Brown,

Not unless you are trying to use a VA or FHA loan, and the condo development is not approved. Otherwise it's the same process as a single family home.

Here's a link to find out if the development is approved. Just fill in the information and a list will come up. You can just search by area/zip code if you do not know the specific development name. All developments approved will come up in the search.

https://entp.hud.gov/idapp/html/condlook.cfm
0 votes Thank Flag Link Tue Nov 15, 2011
Biggest difference is wether or not the Condo building is FHA approved or not.
Web Reference: http://www.yournjhouse.com
0 votes Thank Flag Link Tue Nov 15, 2011
Brown,

It's the same process as a single family home unless you are going to get a VA or FHA loan, then the complex must be VA/FHA approved.

Other than that, you MAY have to fill out a condo questionnaire.

Property taxes, are a separate entity payable to the municipality, (NEVER EVER included in the purchase price), but they can be paid separately by you each quarter, or you can have money in escrow and have the mortgage company pay them for you with your mortgage.

Basically your monthy outlay will include Principle, Interest, Taxes and Insurance (known as PITI) plus the monthy/quarterly HOA fee. And of course the utilities, like sewer/water/electricity,/heat, unless they are covered in the HOA monthly fee too.
0 votes Thank Flag Link Fri Apr 15, 2011
Townhomes & condos are usually more affordable & lower maintenance than a single family home & you usually don't have to worry about lawn maintenance. snow removal or exterior maintenance on most because it is typically included with your monthly maintenance fees. The advantage of a single family home is you have a yard & no monthly maint fees.It really depends on your price range, location you want to live in & your lifestyle. If you are planning on a condo or townhome & getting an FHA loan instead of a Conventional loan make sure the community you are interested in is an FHA approved community. If you have to get an FHA loan & can't find an FHA approved cmty in the area you want to live in then it will be easier for you to look for single family home instead. Most lenders have a list or any realtor you chosed to work with can assist you with your search for one that will suit your needs.. Most mortgage companies include the monthly taxes due with your mortgage payment so you make just 1 monthly payment per month. Just check w/ your lender to be sure.
0 votes Thank Flag Link Wed Apr 13, 2011
They have to pass the condo questionair, and at least half own by owners not renters
0 votes Thank Flag Link Wed Apr 13, 2011
The process of the purchase is one and the same, are there differnt steps for the Realtor and Mortgage person to take, yes. But these should be transparent to the buyer side.

The taxes on either will be a seperate entity on either sale.
0 votes Thank Flag Link Wed Apr 13, 2011
Lenders approve borrowers for a mortgage and they approve the property being purchased. Let’s assumed you are an approved potential buyer. (If you are not, you need to be or you will not be taken seriously.)
Approval of the property is important to the lender because the property is collateral for the mortgage. The appraisal is the most commonly recognized method that the lender uses in order to judge the property is suitable for their collateral. The condition of the property is often considered. Not all loan programs include properties that need repairs.
For condos, there are other elements that the lender takes into account. Is the HOA association financially stable as evidenced by the ratio of delinquent HOA members to the total members? Is there a high percentage of investor owned units in the complex? Is the HOA involved in any kind of litigation? In fact, there are quite a number of questions included in the condo questionnaire that a lender requires the HOA to complete before the lender approves a loan for a condo.
So, yes, condo loans are handled differently and can be more difficult to get. That being said, we get them done every day in our business.
The price of a property and the property taxes are two different, but related issues.
0 votes Thank Flag Link Wed Apr 13, 2011
Taxes are not included in the price of the Condo/townhouse. Taxes will be included in your monthly mortgage payment. Please see more info about the mortgage requirements on the following link. https://www.wellsfargo.com/mortgage/buy/learn/construct/cond…

I am wondering if you cancelled your short sale transaction.
Hope this information will help you.

Regards,
0 votes Thank Flag Link Wed Apr 13, 2011
Yes, it can be. Lenders have a lot of issues with new condos right now and getting them to loan on them can be difficult. You don't have that with town homes and single family homes.
0 votes Thank Flag Link Wed Apr 13, 2011
No its not... It is the same process. Its just on condos theres association fees. If you need my assistance please feel free to call me or email me.

Good luck.

Susana Costa
Email: susana.costa@remax.net
Cell: 908-705-5022
0 votes Thank Flag Link Wed Apr 13, 2011
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