How would you describe my house for financing?

17 years ago

I'm looking to take out a HELOC, and am wondering how you'd describe my house for the applications. They always ask whether it's a single family home, condo, multi-family home, or townhouse.

The house is a century-old two family (side-by-side) that was legally converted to two condos in the early 1980's. (Nothing had to be done physically - it was always meant to be a two-family, as opposed to many other buildings in the Northeast that were cut up to make condos.) The two halves are mirror images, each three stories (well, actually four, but it's unfinished space) high with five+ bedrooms each.

So, it's not a single-family and it's not a multi-family (it used to be, before the condo conversion). Would you call it a condo or a townhouse on the application? I'm figuring it should be a condo, but I think condo conjures up a different visual than my house, so I'm not sure.

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Comments (14)

kec01
17 years ago
We lived in the exact style of house a few years back. It's considered a townhouse for today's purposes.
qdognj
17 years ago
since it wasn't built as a townhouse, duplex might fit it better.But townhouse would also be acceptable
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western_pa_luann
17 years ago
That would be a duplex in my neck of the woods.
sue36
17 years ago
Duplex is the type of building, condo is the way you own it.
terezosa / terriks
17 years ago
It does depend upon the way you own it. I found this definition for a condo: A form of property ownership in which each owner holds title to his/her individual unit, plus a fractional interest in the common areas of the multi-unit project. Each owner pays taxes on his/her property, and is free to sell or lease it.

Here is a link that might be useful: Condo definition
qdognj
17 years ago
do you share a "fractional interest" in any common areas? Or do both owners have their own properties described in a metes and bounds deed? My guess it is not a condo,per se.As condo owners share common areas/grounds, etc..
dave_donhoff
17 years ago
Hi Joann,

The house is a century-old two family (side-by-side) that was legally converted to two condos in the early 1980's.

There's your answer. It's not a discretionary question (like is it a "rambler" or a "colonial" home) the lenders are asking, it is a legal question. If you have any doubt about the category, you can call & check with a local Title company for exactly how your home is recorded to Title.

Cheers,
Dave Donhoff
Strategic Equity & Mortgage Planner
qdognj
17 years ago
The house is a century-old two family (side-by-side) that was "legally converted to two condos "in the early 1980's

Legally converted into two condos? or 2 seperate units? My guess is there is no legalese saying condo, and if so, townhouse is better then condo
bozogardener
17 years ago
I always thought the difference between condos and townhouses was that the townhouse actually held the land underneath and perhaps a small yard to itself. A condo only owns land in common with no direct ownership. That is how it was explained to us with our townhouse. Our property was more easily mortgaged by our buyer because of the land ownership.
jy_md
17 years ago
As others have pointed out, condo describes ownership rather than building structure. So, the house could be a fee simple townhouse (you own the land beneath the townhouse) or a condo townhouse (you share ownership of the land with the other townhouse owner). Substitute duplex for townhouse if you like.
joann23456
Original Author
17 years ago
No, it's definitely a condo. I'm a lawyer and I did all the paperwork, when friends of mine bought and converted it. Housing was sky high (well, not compared to now:)), and lots of old houses were being converted into condos. You'd get an architect to draw up condo plans, file the paperwork, and voila! All done. You should have seen some of the title messes I dealt with before this became popular.

The only common area in our condo is the front hall and porch. Each unit has a separate yard and separate parking spaces. Still, it's a condo.

It *does* feel more like a townhome, which is why I asked. Thanks, Dave, for letting me know that lenders are looking for how legal title is held. That's what I figured, and I have been listing it as a condo. I just wasn't sure.
pamghatten
17 years ago
In the mortgage world, the word "townhouse" means a style of building, not it's legal classification.

Legal would be Condo, attached PUD, attached Single Family Dwelling (SFD), or maybe Rowhouse.

So when someone tells us it's a townhouse, that could mean many things. Then we have to get more details, such as do they own the land (PUD or SFD) or just the space (Condo), is there and HOA, etc.
joann23456
Original Author
17 years ago
Pamghatten - That's exactly why I had the question. I couldn't figure out whether they were asking for how legal title is held or whether they were asking for the style of the building.
pamghatten
17 years ago
Joann - we all sigh when people describe their property as a Townhouse ... anything could be a townhouse. :>)

Banks/lawyers are always concerned with the legality of the structure. There are different requirements for each legal property definition.

I've seen a lot of 4 families converted to Condos, but only a few 2 families. There are all kinds of different structures that are "typical" in different locations in the US.