Good morning. My name is Tom Heath with the Heath Team at Nova Home Loans. Today is August 3rd. And this is our weekly update on mortgage and real estate matters. And today we run our focus on the distinction between a townhome and a condo because those have different underwriting processes and different programs are available. Next week we’ll dive more into the challenges and solutions for condo buying with today I Just want to make sure we’re clear that a townhome and a condo are separate types of property that carry different types of review processes from the lending perspective.
When we look at an MLS listing and the property description does not include the lot, typically that is a condo. If it includes the lot. then it’s typically a townhome. So if you see unit 122 in a shared interest in the common elements, that’s probably a condominium. And your lender needs to be aware of that. If it’s unit 122 and lot number seven, then that’s probably a townhome.
Next week. We’ll talk more about why that distinction is so important for lending but make sure that your pre-qualification letters are accurate. It doesn’t matter what the descriptive nature of the listing is, they could say it’s a beautiful town home with three bedrooms and two baths, but if it doesn’t come with the lot, it’s probably a condo.
If you have any questions on that if you’re not sure, reach out to your lender reach out to us, and always go over to TheHeathTeam.com for more information on all types of real estate-related and mortgage related matters. Have a fantastic week and we’ll see you next Monday.