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. PUDS: A PUD is a home that may or may not share walls with another home. These types of homes are usually in a modern housing development all lined up in a row. PUDS are usually straightforward to finance; most lenders treat them the same as a single-family home. Condominiums: Condos may look like townhouses or PUDS, with multiple properties sharing walls. But a PUD 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. While a good portion of the condo fees everyone pays go towards maintenance of the offered amenities, the condo association will also use some of those monthly fees to purchase a master insurance policy for the entire property. As an example, this would help cover the legal fees that could ensue if someone were to get hurt using the shared pool. Lenders have different requirements for this. The underwriter will review the master insurance policy to ensure that it is adequate to qualify for the loan. With a condo, it’s not just the buyer that has to be approved — the entire condo complex has to
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