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.

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

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.

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.