Wondering whether a house or a condo is the best choice when making your home purchase? Each option has advantages and disadvantages. Find out what there is to know about buying a condo vs. buying a house as your new residence before you go looking for your next home.
Buying a Condo
Condominiums are typically less expensive than detached houses, because the cost of the actual land is split between condo owners. In a lot of markets, this can make a significant difference in how much you will pay overall for your home.
However, there are other factors that can actually increase the cost of home ownership with a condo. Interest rates and down payments can be slightly higher, and the condo will have to meet certain parameters to qualify for many first-time home buyer loan programs, such as those offered by the FHA.
You’ll also need to come up with homeowners association (HOA) fees every month if you buy a condo. The tradeoff for this is that many maintenance requirements for the condo (such as landscaping, roofing, and other exterior repairs) will be taken care of, whereas with a single family home you’re responsible for everything.
Condos often have shared resources, such as a playground, pool, or other conveniences. They are also typically located close to local amenities, making it fast and easy to get to shopping, dining, and medical facilities or schools.
Buying a House
A house gives you a lot more independence than a condominium does. You’ll have more space from your neighbors, more control over the exterior of your home, and most likely more room indoors (square footage of a three bedroom condo vs. a three bedroom house is almost always in the detached home’s favor.)
A mortgage for a detached single-family home may be easier to get, since there aren’t as many regulations as there are with mortgages. You may also be able to get a lower interest rate. Your mortgage payment might be a little higher due to a bigger price tag, but if you are in a neighborhood with no HOA it can balance out.
Finally, a house can be a lot easier to sell than a condominium, if you later decide you need to move on. Detached houses are more liquid than condominiums, which tend to be at a premium in more robust markets and can be difficult to unload in a housing slump. They include the value of the land they sit on in contrast to a condo unit.
Before looking at condos or houses, it’s wise to get preapproved for a home loan. This will help you know what you can afford, and what the specific benefits might be foer you in choosing a house over a condo or vice versa.
Your Sammamish Mortgage Loan Officer Can Help You Start the Preapproval Process Today!
We’ve fine-tuned the preapproval process to make it one of the easiest experiences you’ll have in the whole home buying process. Buying a home should be fun and exciting, not stressful. Get preapproved today!
Sammamish Mortgage has been in business since 1992, and has assisted many home buyers in the Pacific Northwest. If you are looking for mortgage financing in Washington State, we can help. Sammamish Mortgage offers mortgage programs in Colorado, Idaho, Oregon and Washington.
Contact us if you have any mortgage-related questions or concerns. If you are ready to move forward, you can view rates, obtain a customized instant rate quote, or apply instantly directly from our website.