Articles on: Types of loans

Why are condos treated differently to other single-family homes?

The main difference between buying a condominium and a single-family home is the type of ownership you get.

With a condo, you get the exclusive right to the interior space of your dwelling unit, but the land, walls, grounds, fences and facilities are owned in common with the other owners in the complex. With a single-family home you are the sole owner of the building and the land it sits on. This is called ‘fee simple’ ownership. Also, because the HOA has their own set of rules for governance, lenders have to ensure that HOAs comply with lending guidelines.

Updated on: 05/07/2022