Frequently asked questions about our Park City Townhomes
Townhome Basics
Whether you’re looking for a more affordable home, a low maintenance lifestyle or a worry-free, lock and leave option, consider a townhome as an attractive alternative to a single-family home. Roughly 1/3 of Park City’s primary residents and second homeowners have chosen one of our townhomes as their “right-size home”. Here is some basic info including a discussion of townhome distinctions, advantages and financing.
Distinctions and Advantages
WHAT MAKES A TOWNHOME A TOWNHOME?
A townhome is attached, sharing at least one common wall with another, similarly designed home. But unlike a stacked condo, there is no one above or below you. In most cases you have your own private entrance and usually direct access to your own garage, so they tend to live like a single family home. Buying a townhome involves living in a common-interest development in which a standard set of rules govern the community. In general townhomes tend to be smaller than single-family homes. However, the Park City area offers a wide range of options from affordable to luxurious, and sizes can range from about 1200 to 5800 sq ft.
TYPES OF TOWNHOMES
While Park City is a resort area, there are also a significant number of neighborhoods that are largely geared towards primary homes/townhomes and second homes/townhomes, where short term rentals are not allowed.
Residential townhome neighborhoods include April Mountain, Silver Springs, Pinebrook, Jeremy Ranch and Summit Park.
Resort townhome neighborhoods where most properties do allow short term rentals include Old Town, Upper and Lower Deer Valley, Canyons Village and Kimball Junction area. Of course, these locations are also closer to skiing, restaurants and good bus service.
Mixed-use neighborhoods, such as Prospector, Park Meadows and Sun Peak/Bear Hollow have some properties that allow short term rentals, but have less of a resort feel.
ADVANTAGES
Homeownership of any type requires maintenance, but maintenance in a townhome may require considerably less effort than in a single-family home. The advantage of a townhome community is that the homeowner’s association ensures the upkeep and uniformity of the dwellings. The HOA oversees and enforces daily community operations, including common area maintenance and trash removal. HOA’s also typically handle all exterior maintenance, and some provide other services, such as swimming pools, spas, clubhouses, tennis courts and/or playgrounds. Dues vary depending on amenities and the common areas to be maintained. In addition to the usual lower purchase price, townhome owners generally have lower utility costs than single family homeowners.
Townhome Financing
Financing is available for most properties in a resort market like Park City; however, the terms and cost of financing are largely determined by both the property type and the borrower’s qualifications. Banks favor Single Family Homes that are owner occupied as a primary residence, and disfavor condos that are used as rental properties. So what about townhomes? It depends!
Townhomes can fall into one of several categories. A townhome is a property type, rather than a legal description. Townhomes in the Park City area will either be a Condominium or a Planned Unit Development (PUD). The difference between an HOA-run condo townhome and a PUD townhome is who owns the land upon which the structure sits. In a condo situation the association owns the land. In a PUD, the homeowner owns the land underneath the unit. In both cases there is a homeowners association (HOA) that collects dues. For condos the HOA will manage all exterior maintenance and amenities. That is often also the case with a PUD townhome, but what is maintained by the HOA can vary.
Lenders look at PUD’s like they do Single Family Homes, so mortgage rates are favorable and the process is streamlined. Condominium financing has more rules and review requirements. For Condominiums where short terms rentals are allowed, the property is considered a resort condo or condotel. These are considered non-warrantable and the loan cannot be sold to Fannie Mae, so other financing (higher down payments & interest rates) will be used.
Financing is available for pretty much any Park City area townhome. When starting to look at financing a townhome it is important to first consult with a local lender, to accurately determine the best options. Fortunately, the local lenders I work with are seasoned pros, reliable and can offer competitive loan programs that fit a borrower’s needs and property requirements.
