When is a Townhome not a Townhome?

Enclaves Townhomes

When is a Steamboat townhome not a townhome?   When it’s a condo, of course!

If that doesn’t make any sense, you are not alone.  When it comes to financing a Steamboat townhome or condominium, the lender’s underwriter decides how a property is classified.  I recently worked with a buyer who purchased a place that looked like a townhome.   It had several levels, a front door, a garage in front, and common walls on the sides.  The first lender said “this is a condo and we won’t finance it.”   The second lender said “this is a condo and we will finance it, but you’ll have to put more money down and pay a higher interest rate.” The third lender said “this is a townhome and we are happy to finance it.”

Same property.  Same buyer (with excellent credit.)  Different underwriter.

Some of the things underwriters look for when they classify a development are:

  • Is there any land included with the purchase?  If there isn’t, the townhome is technically a condo built on the development’s common area.
  • How do the governing documents classify the property?  If any of the CIC documents (Articles of Incorporation, etc.) use the word ‘condominium’, there is a good chance your townhome is a condo.

In Steamboat, places like The Enclaves, Quail Run, Mustang Run, Saddle Creek Townhomes, Eagle Ridge Townhomes, etc. could go either way depending on the lender.

Please call us at 970.819.6372 for more information about purchasing Steamboat condos and townhomes.


Posted by Steamboat Condos for Sale | Filed Under Steamboat Springs condo financing, Uncategorized


  1. […] As anyone with good credit trying to finance a resort condo will tell you, lending doesn’t make a whole lot of sense.   Whether or not a buyer gets a conventional loan depends on the condo development–not the borrower.  As a broker who works with a lot of buyers, it can be a challenge to find the right lender to match with a borrower.  Underwriters can’t even agree how to classify properties so sometimes it takes making calls to several lenders to find the right one.  Read here. […]

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