Register Real Estate Advisors

There are both townhomes and condominiums in and around the Houston area.  You will need to know the difference if you are interested in purchasing either homes.  A townhouse is considered a single family residence and the paper work for the Realtor and Lender is the same as a free standing home purchase.  If you are purchasing a condominium, there is additional and different paperwork for the Realtor and Lender to prepare and strict guidelines for financing.

How do you know the difference between a townhouse and a condominium?  One way is to look at the legal description- in most cases, a townhome has a lot/block legal description and a condo will show “unit __” of “Building ___” or on tax records it will show style as being a condo.  If it is still unclear after looking at the tax records, the next step would be to have a title company pull the title information on the property to see how it was legally recorded.

If you are purchasing a condominium, you need to understand that they are considered high risk properties.  The condition and value depend on the neighbors as much as the owners, so owner occupancy is very important.  If too many owners are using the condo as an investment property or second home, then it could limit the type of loan you can get on your condo.  If you are getting a conventional loan on your condominium you have to put down atleast 20% so there will be no mortgage insurance required.  If you do a conventional loan with less than 20% down, then you will be required to get mortgage insurance and the owner occupancy rate must be atleast 75%.  So if the majority of the condos are used as rental units or second homes and you don’t have 20% to put down, you will not be able to get a conventional loan.   For an FHA or VA Loan, the government rules state that the condo association must be on the approved list for either FHA or VA before you can do a loan through them.  The approved lists are available online.  If the property is not on the approved list, then you do have the option to submit to FHA or VA for approval, but this is a long process.  For the property to get approved for an FHA or VA Loan they will require that it has an owner occupancy of atleast 50%, there cannot be any lawsuits going on with the property, past dues cannot be more than 15%, and any other requirements they want to add.

It is definitely easier and less risky to purcahse a townhome, but many condominiums are popular around the city and qualify for both VA and FHA Loans.  Check with a Realtor at Register Real Estate Advisors to learn more about the townhomes and condos in the area where you want to relocate to.  Our agents can help you move into any home you choose!  Call us today to get started.

The following information is reprinted from REALTOR Magazine Online by permission of the National Association of REALTORS – copyright 2005 – all rights reserved.

Condominiums and townhouses offer an affordable option to single-family homes in most areas, but consider these facts before you buy.

1.  Storage.  Some condos have storage lockers, but usually there are no attics or basements to store belongings.

2.  Outdoor space.  Yards and outdoor areas are usually smaller in condos, so if you like to garden or entertain outdoors, this may not be a good fit.  However, if you hate yard work, this may be the perfect option for you.

3.  Amenities.  Many condo properties have swimming pools, fitness centers, and other facilities that would be very expensive in a single-family home. 

4.  Maintenance.  Many condos have onsite maintenance personnel to care for common areas, do repairs in your unit, and let in owrkers when you’re not home.

5.  Security.  Many condos have keyed entries and or even door attendants.  Plus, you’ll be closer to other people in case of an emergency.

6.  Reserve funds and association fees.  Although fees generally help pay for amenities and provide savings for future repairs, you will have to pay the fees agreed to by the condo board, whether or not you’re interested in the amenity or not.

7.  Resale.  The ease of selling your unit is more dependent on what else is for sale in your building, since units are usually fairly similar.  Single-family homes usually are more individual.

8.  Freedom.  Although you have a vote, the rules of the condo association can affect your ability to use your property.  For example, some condos prohibit home-based businesses.  Others prohibit pets.  Read the covenants, restrictions, and bylaws of the condo carefully before you make an offer.

9.  Proximity.  You’re much closer to your neighbors, in a condo or town home.  If possible, try to meet your closest prospective neighbors before making a decision.

HOUSTON (Houston Chronicle) – The Harris County Housing Authority (HCHA) has purchased 91 waterfront acres on West Lake Houston Pkwy. to develop Patriots by the Lake, a master-planned community to serve as a living monument to America’s veterans.

The community will provide housing, employment, medical and ancillary support and recreation in and around its 44 parks and programmed open spaces.

Residences will consist of townhouses, condominiums and custom single-family homes ranging from 2,877 to 8,000 sf.

A marina district will also be developed and include a boardwalk, amphitheater, hotel, shopping and restaurants.

A “Wall of Heroes” memorial to honor fallen servicemen and women of the Iraq and Afghanistan conflicts will be accompanied by several monumental tributes throughout the community.