Condo - Condominium - A Condo or Condominiumisa resdential property of 2 or more units where the owners each hold separate title to their unit and a collective undividided interest in common areas like swimming pools etc.

Condominium - A form of ownership in which individuals purchase and own a unit of housing in a multi-unit complex; the owner also shares financial responsibility for common areas.

An individual condo owner holds title to the condominium unit only, not the land beneath the unit, so condos can be stacked on top of each other.

Despite being similar, townhomes or townhouses are not considered condos. They are considered an attached single family residence or a planned unit development.

Condos serve as a great purchases for someone who doesn't have a large family and doesn't want the burden of cleaning or the maintenance that a larger home requires.

Condos are classified as high rise, more than five stories, and low rise, less than five stories.

On most condo projects a home owner association has been established to maintain the grounds and common areas.

Condominiums typically require slightly higher homeowners association dues to pay for insurances that are required and up keep of amenities and common areas.

For a mortgage loan secured by a condominium unit to be eligible for delivery to Fannie Mae (FNMA) or Freddie Mac (FHLMC), the condominium project must be approved by FNMA and FHLMC. In order for a condominium development to be accepted, it must meet certain requirements promulgated by Fannie Mae and Freddie Mac. Some of the more important requirements are, the minimum number of units already sold, the number of owner occupied units and units being rented in relation to total number of units in the development, and if any one investor holds title to more than a certain percentage of total units.

Condominium boards often require an interview with a condo buyer to ensure the potential occupants meet their requirements. Some of the condo boards' criteria are the occupant's family size and income situation.

A great way for young adults to get started buying their first home is by using the FHA "Kiddie" Condo Loan Program. This type of mortgage allows a person to co-borrow with a blood relative (eg. parent, grandparent, sibling, etc.) who helps qualify for the loan using their income or assets. Both borrowers take title to the property and sign for the loan.

One advantage to owning a Condo is not having the requirement for a survey to be done.

Some lenders will consider a mortgage loan secured by a condomimium to have more risk than a loan secured by a single family residence. In this case, the lender will charge a slightly higher rate of interest for the condominium loan.

This is an ownership where the owner gets title to a unit, in a multiple dwelling plus a proportionate interest in some of the common areas.

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