PUD vs. Condo, what’s the difference? » Mortgage Masters Group

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To most home shoppers, a planned unit development (PUD) may look like a single-family home. But the legal structure for a PUD is more similar to that of a condo and can impact the mortgage process.

Written By: Stacey Sprain In a recent meeting of the minds we determined that our closing and funding departments have been seeing an increasing number of doc correction requirements come through in regards to PUD properties. So we posed the question- What makes a PUD a real PUD? What should we ref

A PUD is defined as a mixed-use residential development of single-family dwellings in conjunction with rental, condominium, cooperative or town house properties.

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A Planned Unit Development is a condominium variation. puds are usually townhouse developments where each townhouse owner owns their structure and the land beneath it.

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A PUD, is a "Planned Unit Development". But the key ingredient is that in a PUD the homeowner owns their own home and the land beneath it. A condo, on the other hand, (short for condominium) may look the same as a PUD, but the homeowner only owns the interior walls and the interior airspace of the home.

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