There are many different types of condos and financing programs for them: the purpose of this blog: What Am I? PUD, Townhome, Condo... how do I tell the difference? Will help you understand what type of condo you may be interested in.
Condo: A condo regime is created by state or local law and is characterized by fee simple ownership of a unit, which is defined in the condo documents, together with common areas. The property interest in these areas is both common and undivided on the part of all owners, each of whom belong to the HOA that typically maintains the property and collects assessments or dues from each owner. (in English: you only own your unit, not the lot it’s on and you have an joint interest in all the common areas with the other owners)
Site Condo: A single family totally detached dwelling (no shared garages or any other attached buildings) encumbered by a declaration of condominium covenants or condominium form of ownership. (In English: you own the lot under the unit as well as the unit – no shared walls of any kind)
PUD: A PUD is defined as a mixed-use residential development of single-family dwellings in conjunction with rental, condominium, cooperative or town house properties. A residential development should be processed as a PUD if it has these minimum characteristics:
1) a homeowner association that holds either title in fee or a lease of prescribed length on the common area
2) mandatory membership of all unit owners (or units) in the association
3) the right of all unit owners to participate by vote in the operation of the association
4) lien supported assessment of the members to meet the association's budgeted operating costs (special assessments may be handled differently)
Townhome: A style of housing where a row of identical houses share walls. Typically there are no units above or below the townhome. Often these types of homes have a small yard and the HOA includes amenities such as a community pool.
Thanks for stopping by reading, commenting and sharing my bllog: What Am I? PUD, Townhome, Condo... how do I tell the difference?
For more information on property types and how they impact financing please feel free to call me directly - Danell Riggs, AZLendingCrew @ 928-458-0507 (NMLS 420524)