What Is A Condominium?

Condominiums are groups of homes, governed by an association of elected homeowners. They can exist in apartment buildings, and as townhouses or homes in a neighborhood.

When you own a condo, you own everything within the walls of your home, plus a percentage of the areas common to the community.

Common areas in a condo association can include:

  • Streets and parking garages
  • Hallways and elevators
  • Gyms and grassy areas

If your condo community contains an common elevator, you own a percentage of the elevator. If it contains a shared yard, you own a percentage of the yard.

To manage common areas, condominium owners elect a Homeowners Association to serve them whose primary responsibility is to keep the community running smoothly, and to maintain a Condominium Master Insurance Policy which insures the common areas of a building against damage.

Mortgage lenders approve condos differently from stand-alone homes.

If you're thinking about buying a condominium, you may need a larger down payment or different credit score. Ask us your question in the chat and we'll help you understand.

Dan Green

Dan Green

Dan Green is a former mortgage loan officer and an industry expert. He's appeared on NPR and CNBC, and in The Wall Street Journal, Bloomberg, and dozens of local newspapers. Dan has helped millions of first-time home buyers get educated on mortgages, real estate, and personal finance. Have mortgage questions? Ask Dan in the chat.

Subscribe to our Newsletter

Receive real estate and mortgage news by email weekly. Personalized for you & your specific homebuying goals.