Town Homes/Condos

Town Home sales can often present a problem when the complex in which the Town Home is located has too many rentals. Certain types of loans or underwriting provisions limit the percentage of rentals in a complex and may not lend on the Town Home if the percentage exceeds the amount allowed.

As a Seller, you may want to clarify with your Home Owner Association as to how many Town Homes are rented to make certain you do not have problem selling your Town Home. You may also want to check with a few reputable lenders in your area to see if the guidelines exist for your complex the restriction has changed. In short, it would be best to have the information before setting out to sell your Town Home.

If restrictions do apply and the percentage is higher than what is allowed for lending purposes, you may have a problem with a Buyer using financing. You may have to seek only cash Buyers for the sale of your Town Home.