|
Condos and Townhomes may be a great choice for buyers looking for less maintenance than a traditional home may require.
You are required to pay homeowners association (HOA) dues to cover expenses for the whole complex, including roof repairs, yard maintenance and landscaping, parking lot repairs, and repair/upkeep for other common areas. These dues can often be around $200.00 per month.
Some Condos are designed as Condos for sale from the start. Others are merely converted older apartments. This is an important point to discuss with your Buyer Agent.
Some Condos and Townhomes may cost less than traditional homes in the same areas.
But lenders look at the cost of the monthly HOA dues along with the mortgage payment, to determine how much monthly payment you qualify for.
So, buyers with limited income and/or with higher monthly credit obligations may only qualify for a Condo or Townhome which costs $10,000 LESS than a traditional home they would otherwise qualify for.
Loans for Townhomes and Condos with less than 50% owner-occupancy are much harder to get and the interest rates are higher. There are greater risks for both buyers and lenders with Townhome and Condo communities having a higher proportion of renters occupying homes.
Duplexes--Buyers can buy a whole Duplex or just one-half. If you buy a whole Duplex and the other side is rented out with an approved lease agreement in writing, you typically only have to qualify for about one-half the total monthly mortgage payment.
Buyers wanting to buy just one-half a Duplex should seek the advice of a qualified Buyer Agent and be cautious. You are depending on the cooperation of the other owner for repairs of any common structures, like the foundation or roof. What if this person doesn't cooperate or isn't financially stable?
What if your joint owner sells and the new buyer of that side of the Duplex doesn't cooperate on joint repairs, or isn't financially stable?
DISCLAIMER: No information on this website is intended as real estate advice. For property specific or general real estate questions, you should consult with a Texas Real Estate Commissioned (TREC) licensed real estate agent who is a member in good standing with the National Association of Realtors® (NAR).
Nothing on this website is an offer to sell nor an offer to enter into a buyer representation agreement.
Many consumer experts recommend buyers choose an agent who has specialized buyer representation training and who agrees to show buyers ALL eligible homes equally, without bias because of real estate commissions or bonuses.
Some terms used to describe these special consumer-friendly Realtors® are: "Buyer Agent", "Exclusive Buyer Agent", "Buyer Broker", or "Exclusive Buyer Broker".
 REALTOR® -- A Registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS® and subscribes to its strict Code of Ethics. Inquiries regarding the Code of Ethics should be directed to the board in which a REALTOR® holds membership.
| 
