When it comes to purchasing a home, the traditional single-family house offers numerous advantages. Privacy, ample space, and the freedom to customize within zoning regulations are just a few. However, single-family homes are not suitable for everyone, and there are plenty of other options available on the market. Depending on your requirements and location, alternatives such as condominiums or factory-built modular homes can offer a more affordable and practical choice.

Let’s explore the various types of homes in detail:

Site-Built, Detached Single-Family Houses

When browsing real estate listings, the term “single-family home” generally refers to a site-built, detached house designed for a single household. Site-built homes are constructed on-site, distinguishing them from manufactured and modular homes. “Detached” means having direct access to the outdoors and no shared walls or utilities with neighboring residences. Typically, these homes come with some outdoor space, even if it’s just a narrow strip of land on each side. According to the 2021 U.S. Census Bureau data, approximately 62% of residences in the U.S. are detached single-family houses.

Condos

Condominiums, or condos, provide a more affordable alternative to single-family homes. Condos in multistory buildings are often indistinguishable from rental apartments, while side-by-side or detached condos may resemble townhouses. What sets condos apart is the ownership structure. When you purchase a condo, you gain sole ownership of the walls and everything within your unit, as well as joint ownership of outdoor and shared spaces. The condominium association manages the shared areas, similar to a homeowners association for single-family homes. As a condo owner, you’ll contribute a monthly association fee that covers maintenance, landscaping, and other upkeep outside your unit.

Townhouses

A townhouse is a unique blend of a detached single-family home and a condo. When you become a townhouse owner, you have sole ownership of your unit’s parcel of land and are responsible for its maintenance. Unlike traditional condos, townhouses are constructed side by side, allowing you to share walls with neighboring units while enjoying the absence of neighbors living above or below your space.

Co-ops

Co-ops, short for cooperative housing, offer a different approach to homeownership. Rather than owning an individual unit, you become a shareholder in the building or development. The value of your shares depends on the worth of your unit and the financial structure of the co-op. While co-ops are commonly associated with apartment buildings or condo complexes, any type of living situation, including single-family homes, can be organized as a co-op. It’s important to note that buying into a co-op entails paying maintenance fees and adhering to the rules set by the co-op board.

Multifamily Homes

What distinguishes a multifamily building from a cluster of condos? It all comes down to sharing. In a multifamily home, units often share utilities or storage spaces, such as attics or basements. Duplexes are a common example of multifamily homes, featuring two side-by-side units owned by a single individual. Additionally, you may encounter large, older houses that have been divided into multifamily units, with a sole owner and the remaining units being rented out. Sometimes, you’ll come across what appears to be half of a duplex for sale, but it is actually referred to as a “twin home” that shares a wall and plot of land while being considered two separate lots. In most cases, sole ownership of multifamily homes is the norm, meaning you are more likely to purchase the entire property and rent out individual units.

Manufactured Homes

Manufactured homes are factory-built structures transported in sections and installed on-site on permanent or semi-permanent foundations. It’s important to highlight the distinction between manufactured homes and mobile homes. Manufactured homes adhere to the construction standards set by the U.S. Department of Housing and Urban Development (HUD), while mobile homes were built before the implementation of these standards in 1976. When it comes to purchasing a manufactured home, you have the option of buying a new one from a retailer or acquiring a used home through a real estate agent, online marketplace, or manufactured home development. Depending on your preference, a manufactured home can be placed on a leased lot or on land that you rent or purchase. Financing options vary depending on whether the home is titled as real property or personal property. Real property titles allow for mortgage financing, while personal property titles are eligible for chattel loans, which typically have lower upfront costs but higher interest rates.

Modular Homes

Similar to manufactured homes, modular homes are constructed in factories. However, they are built in accordance with local and state building codes, resembling traditional single-family homes. After transportation to the home site, local contractors assemble the modular pieces and place them on permanent foundations. Modular construction offers advantages such as cost and time savings, as most of the work is completed in a controlled factory environment, unaffected by weather delays or on-site issues. This makes modular homes a potentially more affordable alternative to traditional on-site construction methods.

Tiny Houses

Tiny houses are typically under 400 square feet, can either be portable or constructed on permanent foundations. If they meet the minimum size requirement of 320 square feet, they can adhere to HUD standards for manufactured housing. Alternatively, they can be built to comply with recreational vehicle or International Code Council standards.

The popularity of tiny houses has grown as people seek simplicity and affordability. These homes cost less, consume less energy, and occupy less space compared to traditional houses.

If you find the idea of a tiny house appealing, consider whether you prefer a movable home, similar to an RV, or a home on a permanent foundation. Next, familiarize yourself with state and local laws and zoning codes. The Tiny Home Industry Association provides a resource map with links to information on local legislation, builders, and tiny home communities.

Regardless of the type of home you ultimately choose to purchase, it’s important to follow the same fundamental steps: Determine your homebuying budget, compare lenders, obtain a mortgage preapproval, and then embark on the search for your new abode.

Contact Sword Mortgage To Learn More About Your Options

Call (770) 757-5750 or complete our online form to speak with a loan expert at Sword Mortgage to get help navigating your options and find a loan that fits your needs today.