Most of the time people in our area think of condos and townhomes as interchangable terms. They actually are not and can have strict implications when finding financing for your student housing needs.
Condos in Bryan or College Station have a shared association that maintains the exterior of the buildings and common areas. With ownership of a condo you own the airspace, but not the land, around your condo. You, as part of the association, do have a share of the land. With the purchase of a condo you do not need to have insurance with most finance companies. Despite their nonstringent requirements please get insurance
. You still retain ownership of the sheetrock in. If a disaster occurs the association will be responsible for rebuilding the exterior of the structure. You will be responsible for the sheetrock, cabinets, fixtures and finish out of your property.Financing a condo can have special implications
, but typically only if you are using an FHA loan. FHA will want to ensure two things about the condo association. The first is that it is at least 51% owner occupied. You will not be able to get an FHA loan on a property that is primarily owned by investors. The second is that no more than 10% of the units are encumbered by FHA loans. It is an unusual case where there are more than 10% of a condo project that has FHA insured loans, but ensuring that your project isn't one of them can be difficult at best.
Townhomes are considered conjoined (typically) single family structures and have no strict guidelines. You may or may not have a home owner association that will provide common maintenance and maintenance of the exterior. You own the land under your unit and have no FHA guidelines specific to townhomes.
Why would you want to go FHA? That's for a different discussion! For more information about different aspects of the Bryan/College Station market go to my blog site at http:/www.BCSRealEstateNews.com. Please give Coti or I a call for all your buying or selling needs here in Bryan-College Station, whether it be a condo or a luxury home!