Despite states having different laws regarding common interest communities, they all basically have the same three types: Condominiums, Planned Communities/PUDs and Cooperatives. Each has a variation of a collective form of ownership whereby each unit owner has a financial responsibility to the others.
Common Interest Communities 101 provides descriptions of the three different types of common interest ownership.
Common Interest Communities 102 provides basic details as to how common interest ownership is different than owning a single-family home.
Condominium projects are required to get approved with FHA and the VA in order for these financing options to be available in the community. Fannie Mae and Freddie Mac do not require project approval for conventional loans to be available in the community.
Fannie Mae, Freddie Mac, FHA and the VA do not require project approval for Planned Communities. These units are treated as single-family homes.
Fannie Mae, Freddie Mac and FHA do not require approval of cooperatives prior to providing financing in these communities. The VA does not provide financing of cooperative share (unit) purchases.
As always, you can ask us a question regarding any of the different forms of ownership.