Lower price point, less maintenance, and often a better location for the money. It's easy to see why a townhome catches your eye. Before you get too far into the process, there are a few financing details worth knowing that don't come up with a single-family home.
Not Every Community Qualifies the Same Way
Some townhome associations qualify for standard conventional loan programs, and some don't. That distinction changes the entire financing process and timeline, so it's worth confirming early rather than discovering it mid-escrow.
Recent Changes Worth Knowing
A streamlined financing option for townhome associations was discontinued this past August, which has slowed down some closings. Looking ahead, HOA reserve requirements are set to rise from 10% to 15% starting around January. Associations that aren't prepared for that increase could temporarily lose eligibility for standard financing, which may affect how many buyers can qualify for a given property.
None of this puts a townhome off the table. It just means asking the right questions upfront makes for a smoother process from offer to closing.
Found a townhome you're considering? Let us check its financing status before you fall too in love with it.
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