Looks can be deceiving

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Things are not always what they appear to be. For example, do you see two faces OR a candlestick in the picture below?

What do you see?

The same can be said for determining if a home is a condo. If someone lives above you, below you, and to each side of you, then it is a pretty safe guess that property is a condo.

On the other hand, a home could look like a townhome, be two stories like a townhome, only have 2-4 units total in the building like a townhome, but still be legally a condo.

Why is this important? As mentioned in my previous post, getting financing for condos is more adventurous today than it has been in the past. If you are looking to buy a townhome, when you get ready to make an offer, give your loan officer three pieces of information.

  • First, the property address.
  • Second, the amount of the offer.
  • Third, the name of the townhome community.

Just because a home you want to buy looks like a townhome doesn’t mean that it is a townhome. It could be legally described as a condominium, and therefore subject to condo guidelines for loan approval.

If you want to buy a townhome, prior to ordering an appraisal or having the property inspected, ask your loan officer to see if the property is legally described as a condominium. If it is legally a condo, the guidelines for loan approval are much different. If it is not legally a condo, then it is much easier to get financing for the property as the home is treated as a single family residence.

If the home is in the state of Georgia, I can help you get started with the prequalification process AND help you ensure the property is a townhome and not a condo.

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One Response to “Looks can be deceiving”

  1. Non Warrantable Condos « The Mortgage Blog Says:

    […] home. From my previous posts, sometimes a home may look like a town home, but legally be a condo. Looks can be deceiving. Your loan officer should be able to help determine if a property is legally a condo if you can […]

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