Does condo or townhouse classification affect my pricing?

Applies to: United States.

Yes. The property's classification is used when the investor prices the application. Your processing team needs to confirm the title and program classification before explaining the price.

A property designated as a condominium on title is assessed as a condominium. If you are buying a townhouse, ask whether it is treated as a planned unit development (PUD) under the applicable program; the word “townhouse” on a listing is not enough to establish that treatment.

Can you tell me the additional cost?

A specific pricing difference needs to be checked for your property, proposed financing and loan-to-value ratio. Ask the processor to confirm the classification used in your quote and show the effect, if any, on the terms offered.

This lets you compare the actual quote without assuming every condo has the same surcharge or every townhouse receives PUD pricing.