It is fairly common knowledge that there are houses, townhouses, and condos, and while the difference between a house and a townhouse or condo is pretty self evident, the differences between condos and townhouses can get pretty muddled. And the difference between what type of property you purchase can impact the rate and terms of your mortgage, and can even exclude you from finding a mortgage.

First there are houses, which are free-standing buildings on a plot of land. These come in single family and multi-family varieties. The majority of home buyers purchase single family homes, which means the house is designed for use by one family. Multi-family homes, by contrast, have more than one separated “home” within the building. There are multiple entrances to the designated spaces, and each have their own bedrooms, living areas, bathrooms, and kitchens. If you are looking for a house to share with another family (such as elderly parents, or siblings buying a house together with their families), multi-family homes are a great option. They also work well for buyers who would like to rent a portion of their home for income.

Condos and townhouses, on the other hand, are types of homes in which homeowners share walls and land with other homeowners. In a condominium community, homeowners own the space in which they live (everything inside the exterior walls) as well as a portion of the land as determined by the condo agreement. Condo communities form an association which manages the land, common space (any space which is used by multiple owners – this can be parking lots, hallways, pools, etc.), exterior walls, and roofs. There are a number of different types of condos, which I will be discussing in my next post. One thing to consider with condos is that a poorly run homeowner’s association can make lenders unwilling to lend to a customer attempting to buy property in the community. You can call me for a list of approved condo and townhouse communities in your area.

As you can see, these property types all allow you to own your home, but what else you get is quite different in each. If you would like more information on the differences, and which type of property is best for you, please contact me. And if you would like to add anything about these different types of properties, please leave a comment.