A property that is hard to finance doesn’t mean that it can’t be financed, but there are intricacies to them that present complications. If your loan officer doesn’t know about the different requirements, your client may not be approved for a loan. Single-Family Homes: The easiest property to finance is a single- family house. It doesn’t mean they’re problem-free, but single- family houses are a lot easier to get approved for a loan than pretty much any other kind of property. As usual, the home will have to go through the appropriate inspections, especially if the buyer is going to take advantage of an FHA, VA, or USDA loan. For example, if the house has an old roof it may not be eligible for a VA loan. You must check the property condition to make sure it will fulfill the requirements of the different loan programs. Townhouses: A townhouse is a home that shares walls with another home. These types of homes are usually in a modern housing development all lined up in a row. Townhomes are usually straightforward to finance; most lenders treat them the same as a single-family home. Condominiums: Condos usually look like townhouses, with multiple properties sharing walls. But a townhouse is its own separate property that is treated like a “normal” house, whereas a condo is a part of a larger whole. When you buy a condo, you agree to share certain aspects of the larger condominium complex. This can include things like a pool, a gym, a parking garage, etc. To cover the expenses for these amenities, condo owners pay a fee to the condominium complex. These fees can be expensive, depending on the amount of amenities and services the complex offers.
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