Single-Family Homes

Definition: A single-family home is a standalone structure intended for one family.

Loan Compatibility: Most mortgage products, including conventional, FHA, VA, and USDA loans, are readily available for single-family homes.

Advantages: Generally have higher resale value and more loan flexibility.

Condominiums

Definition: Condos are individual units within a larger complex where common areas are jointly owned.

Loan Compatibility: Condos are eligible for most types of mortgages, but the condo complex itself must often meet certain criteria set by the lender, especially for FHA and VA loans.

Considerations: Some lenders may have additional requirements or higher interest rates for condos due to perceived higher risks.

Multi Family Homes

Definition: The role of an agent and tips for finding the right one.

Loan Compatibility: Qualify for most residential mortgage loans, but the borrower may need to live in one of the units to qualify for certain loans like FHA.

Investment Potential: Often considered by those looking to live in one unit and rent out the others.

Manufactured and Mobile Homes

Definition: Homes that are built off-site and moved to their location.

Loan Compatibility: Specialized loans, like FHA’s Title I program or VA loans, are often used. Conventional loans may have stricter criteria.

Key Point: The home must be permanently affixed to a foundation and meet certain standards to qualify for most mortgage loans.

Co-ops

Definition: In a co-op, you don't own the unit outright but rather shares in the cooperative that owns the building.

Loan Compatibility: Requires specialized co-op loans, which may not be as widely available as other mortgage types.

Unique Consideration: Approval process often involves the co-op board and may include additional criteria.

Townhouses

Definition: Similar to condos but typically multiple floors and share one or two walls with adjacent properties.

Loan Compatibility: Eligible for most types of home loans, similar to single-family homes, but like condos, the townhouse development may need to meet certain criteria.

Vacation and Second Homes

Definition: Properties purchased in addition to a primary residence.

Loan Compatibility: Can be financed with conventional loans, but lenders often have stricter criteria and may require higher down payments.

Investment Properties

Definition: Properties purchased to generate rental income or for resale.

Loan Compatibility: Typically require investment property loans with higher interest rates and down payment requirements.