Mortgage Refinancing and Condo Acquiring Now A lot Tougher

Before we look at the top five reasons to buy a condo or townhouse, what are condos and townhouses?

Condos and townhouses are unit-based home purchases. For example, a condo unit will exist within a group of connected condominiums and you purchase one unit or one condo. Overall Price ; Ownership - Buying a condo or townhouse can be much cheaper than a conventional home. Ownership of a condo or town home is much the same as a conventional home.

All condos for sale and most town homes for sale are organized by a Homes Association. When you purchase your condo or townhouse, you become a member by default.

Five Top Reasons to Buy a Condo Or Townhouse

If you're planning to buy a condo or refinancing your condo you might sense the mortgage credit and squeeze.

Mortgage insurers would also reject and condo applications if more than 30 percent of the owners of the condo are investors.

Those condo buyers that have a 20 percent down payment would not feel the affects of the mortgage insurers cutbacks. Mortgage insures will continue to refinance mortgages and continue to take applications for condo buyers that have at lest 10 percent.

Huge mortgage refinancing lenders have issued new guidelines that make it tougher for mortgage refinancing lenders to make loans available to buy condos or refinance mortgages.

Smaller lenders find these new guidelines for condo buying and mortgage refinancing unfair.

Some private mortgage lenders are now refusing to approve condo units in the same condo project after a certain percent to help restrict their exposure to any losses.