Buying both sides of a twin home require two mortgages?

13 Replies

I am currently trying to purchase both sides of a twin home.  Each side of the unit has separate deeds.  Does anyone know whether I will have to get two separate mortgages along with all of the associated closing costs, or can I just do one mortgage (which I would prefer)? 

Hmmm, never heard of a "twin home". Learn something every day I guess. Apparently this is different than a duplex?

Originally posted by @John Teachout :

Hmmm, never heard of a "twin home". Learn something every day I guess. Apparently this is different than a duplex?

Maybe this is a unique local term.  I have also heard them called duplexes, but it is not like a typical duplex in that each side has a unique deed and associated land and taxes even though they share a wall.

Originally posted by @George Clark :

@Bryan Terry one condo loan. Is it happenstance they are for sale? It might be a townhome. Are you renting both out? Or living in one and plan on renting the other?

Thanks for your response!  Both sides are owned by a single person now and it is a rental.  I plan to purchase it and rent out both sides also (not a house hack).  

 

@Bryan Terry   With conventional or government financing, you would need two separate loans if they are two separate properties.  There are many properties that are semi-detached (that's another term that could be used to describe two connected houses).  Just as you would need 2 loans to buy 2 condos that are in the same complex, even if they were right next door, you would need 2 loans in this scenario.

Owner financing or a loan from a friend is a different story; you can make any terms you want.  One loan could be recorded against two parcels. 

Blanket loans can also cover more than one property, but they are harder to find and will be more expensive than 2 conventional loans.

Sounds like you mean a semi-detached? 
Semi-detached = 1 building/roof, two habitable dwellings, 2 lots
Duplex = 1 building/roof, two habitable dwellings, 1 lot

I've heard from developers here in Ontario, Canada that when you purchase two lots beside each other they automatically amalgamate (depending on the municipality). So if you buy two lots just be aware of that! Could lower your value. I'd recommend purchasing one in trust and the other under a name to be safe... speak to a lawyer about it. 

Best of luck!

@Stephanie Irto maybe I’m missing the meaning of twin home? Residential home loan is a 1-4 unit single family home. 1 loan. I’ve done it many times. It’s one loan. If want to send address? Unless I’m missing something it’s one loan.

Originally posted by @Dylan Earl :

Sounds like you mean a semi-detached? 
Semi-detached = 1 building/roof, two habitable dwellings, 2 lots
Duplex = 1 building/roof, two habitable dwellings, 1 lot

I've heard from developers here in Ontario, Canada that when you purchase two lots beside each other they automatically amalgamate (depending on the municipality). So if you buy two lots just be aware of that! Could lower your value. I'd recommend purchasing one in trust and the other under a name to be safe... speak to a lawyer about it. 

Best of luck!

Yes!  You are correct, it is semi-detached.  It sounds like I will have to do two separate conventional loans.  Not ideal, but the numbers still work.  Thanks!

 

Originally posted by @George Clark :

@Stephanie Irto maybe I’m missing the meaning of twin home? Residential home loan is a 1-4 unit single family home. 1 loan. I’ve done it many times. It’s one loan. If want to send address? Unless I’m missing something it’s one loan.

The original post said the property has two separate deeds.  A 1-4 unit property would only have one deed.  

It sounds like two individual single family or 1 unit homes that are attached, not a 2-unit home.  

 

@Bryan Terry Your closing costs won’t be that much higher any way, probably less than $1,000.  Most of the closing cost would be the same regardless two title searches, title policies, escrows for taxes and insurances, two appraisals, et.  Plus you have better exit options with two mtgs.

Originally posted by @Wayne Brooks :

@Bryan Terry Your closing costs won’t be that much higher any way, probably less than $1,000.  Most of the closing cost would be the same regardless two title searches, title policies, escrows for taxes and insurances, two appraisals, et.  Plus you have better exit options with two mtgs.

 Thanks for the response.  You make a good point about it improving my exit options.  

@Bryan Terry

I own one of these. We call it a “split duplex” or basically attached townhouses. Physically it is an ordinary duplex.

Since they are on separate parcels and deeds, they will need to get separate loans for each side. However, if you really really want to, you can file with the county or whatever to have the 2 lots made continuous (I think that was the term) under one owner/parcel, then get one loan. The fee with the county is small.

However, you should keep them separate, the total value of both is higher this way and if you ever get in a rut, you can sell one side.

The insurance company views it as one duplex and insured both sides as one unit, which is much cheaper per unit than my other townhome.