There are a few different types of property to pick from when you are going through the home buying process. When deciding what property type your family will purchase, you will want to consider many different factors. The type of property you pick can:
- Determine the program you use
- Impact your interest rate
- Decide your maximum loan amount
- Determine how much you will pay in monthly fees
The most common type of home that a borrower will purchase is a single-family residence. They are an independent residential property that sits on its own land, with unshared utilities. A single-family residence is a great option for families that want a balanced blend between the purchase price and monthly payment.
Also known as mobile homes, manufactured homes are a good option for those with less buying power. While being a cheaper choice, these come with more restrictions. Where you live and the loan program you choose will determine what restrictions you might see. These can include:
- Needing permanent foundations
- Specific loan limits
- Specific term limits
Condominiums are another option for borrowers with less purchasing power but that wants to get into the real estate market. When you purchase a condo, you own everything inside your unit, and your HOA (homeowner’s association) will own the land and common areas that the condo is located within. Condos can often come with higher interest rates and other fees such as HOA dues.
Townhomes are like condominiums; however, they differ in the level of ownership you have. When you buy a townhome, you own the entire unit. This includes the land it sits upon, exterior walls and roof. Townhomes will tend to have a higher purchase price, but less monthly when compared to a condo.
Multi-Unit Property (2 to 4 units)
Multi-unit properties such as duplexes are multiple unit homes bought as an investment property, with the owner living in one of the units. The difference between this and a regular investment property is you must live in one of the units full-time. Multi-unit properties are great for those who can afford a higher amount of money and are content acting as a property manager for the tenants of the other units.
Curious to see what type of home you could buy? Click here and schedule an hour-long free consultation with one of our mortgage advisors. We will go over your income, credit and the type of property that works best for your family. Together we can develop a plan to help get you into the home of your dreams.