You can run into problems getting financing on these properties if a certain number of the units have not been sold or don’t have purchase agreements.

If a certain percentage of properties/units are not sold or are owned by investors in a PUD the units are considered non warrantable.

A mortgage lender will normally not consider a single family residence in a planned unit development to be of higher lending risk than a similar such property not under the jurisdiction of a PUD.

One exception might be a residence that is located in a PUD in which the homeowners association is in poor financial health or is the subject of pending litigation.

Townhomes/townhouses are typically classified as Planned Unit Development, Attached, Single Family Residences.

This is basically a zoning designation, for a property that has more unit density, then a normal development and usually built around common open areas.

PUD or Planned Unit Developments come in specific varieties. For example, a DeMinimus PUD is a Planned Unit Development (PUD) in which the common property has less than a 2% influence upon the value of the premises. The 2% rule of thumb is calculated by dividing the dollar amount of amenities by the total number of units.

When thinking of purchasing a PUD always look at the title report and see how the property is titled. In some parts of the country, such as CA, some Single Family Residences are Insured as a PUD and Titled as Town homes or Condominiums. This can lead to problems with your lender.