Why are Townhomes More Difficult to Buy Than Single-Family Homes?

Many buyers ask about purchasing townhomes as opposed to single-family detached homes.  What are the pros and cons of owning one over the other? Why are townhomes so much more difficult to purchase than a single-family home?

Though owning a townhome seems easier to own. Buying them is definitely not.  Listed below are some of the reasons that it is more difficult to buy a townhome.

Association fees – Townhomes typically have association fees. These fees usually pay for common area maintenance, road maintenance, extra amenities, and even snow removal where necessary. However, these additional services bring with them additional restrictions and requirements. Because of this, some lenders require review of HOA fees to note any special assessment and delinquency clauses, which are sometimes a concern to lenders. Therefore, depending upon the lender, loans can be a concern for those trying to purchase townhomes.

FHA – The type of financing can also cause issues with purchasing townhomes. Since many townhouse complexes are not FHA approved, financing can be a concern to many townhouse buyers. When money is tight, FHA is the preferred financing type for many homebuyers therefore making purchasing townhomes more difficult.

Conventional loans – When purchasing townhomes, a lender may require additional down payments when purchasing townhomes. Down payments can vary depending on which loan programs you choose. The simplest way to figure down payment amount is to use a local Boise or Meridian Idaho Real Estate lending officer such as Roni Leuke of American Pacific Mortgage. You can apply on line at www.APMHomeLoan.com She will be able to explain the different programs available and help you choose the right program for you. This way you will hopefully be able to control your down payment to meet your needs. If you are hoping to purchase a townhome, you may want to consider some of the above-mentioned reasons that townhomes can be more difficult to purchase before making your final decision on how to finance the purchase of your new townhome.

Here are a few townhomes to consider in Boise, Meridian Real Estate furnished by IDX/IMLS. These listings are updated daily each morning Monday - Friday.