Homebuyers

Which of These 6 Home Types Is Right for You? Choosing the Right Property for Your Needs

When it comes to purchasing a home, there are plenty of options.

There are those big houses in the suburbs, duplexes and triplexes that provide rental income, condos that include maintenance, along with other options.

When buyers are narrowing down their choices, they likely want to consider how much square footage they need, the size of their budget, and where they want to live. They will also want to factor in their lifestyles, future goals, and mortgage financing finding the right fit. 

“For the most part, buyers have done their research and have a good idea of what they want” before starting the homebuying process, said Brie Bender, a real estate broker at Innovate Real Estate. She’s based in Myrtle Beach, S.C. and Bradenton Beach, Fla. 

Whether you’re interested in a single-family home with a yard or a tiny house on wheels, here’s what to keep in mind when looking at the different types of homes on the market. 

1. Single-family homes

Single-family homes, the kind that don’t share walls with neighbors and often have front and back yards, are popular for good reason.

Those who purchase these types of properties own their home as well as the land underneath it. That means they’re free to make any updates or renovations they would like (in line with local laws and regulations).

This may help to explain why three-quarters of recent homebuyers opted for a detached single-family home, according to a 2024 survey from the National Association of Realtors (NAR).

There are also many different types of mortgages available for qualified buyers. These include Conventional loans, where buyers may be able to put down as little as 3% of the sale price, Federal Housing Administration (FHA) loans, which have 3.5% minimum down payments, and U.S. Department of Veterans Affairs (VA) and U.S. Department of Agriculture (USDA) loans, which don’t require down payments.

Despite the privacy and freedom they offer, single-family homes are typically more expensive than other property types. That’s because the owners are responsible for all maintenance and repairs. So, if the roof needs to be replaced, the gutters need to be cleaned, or the boiler breaks, the owners will be footing the bill.

“You not only have all the rights that come with a homeownership, but you also have the responsibilities,” Bender said. 

2. Multi-family homes

Multi-family homes are buildings with two or more units—giving homeowners the opportunity to have tenants pay a good chunk of their mortgage. These can be duplexes, where each unit shares a wall, triplexes, or even apartment buildings with up to four units.

These kinds of homes often appeal to buyers looking for investment properties, as they can live in one of the units and rent out the others. Those interested in multi-generational living may also want to consider these properties. The owners often live in one unit and their elderly parents or adult children live in the other.

Owners who live in the home while renting out the remaining units are typically eligible for the same loan options as single-family homeowners. They can put the rental income they earn toward their mortgage. 

But sharing a home can come with challenges. Landlords are responsible for any problems in the units. And all occupants need to be comfortable with shared walls and living in close proximity to each other.

3. Manufactured homes

Unlike traditional, single-family homes, which are built on-site from the ground up, manufactured homes are factory-built according to federal construction and safety standards. Then they are transported to a buyer’s land or home site.

The average sales price of a new manufactured home was $127,800 as of August 2024, according to data from the U.S. Census Bureau. That makes them an affordable option relative to traditional single-family homes, but other costs apply. 

Buyers need to purchase or lease the land on which their home will be located. If they’re renting the property, prices can go up over time.

They also need insurance, which is often more expensive for manufactured homes because of their susceptibility to theft, vandalism, and natural disasters. 

4. Tiny homes

As the name suggests, tiny homes are, well, tiny. They are generally 400 square feet or less, according to the Tiny Home Industry Association.

These homes may be ideal for buyers who are downsizing, budget-conscious, or interested in eco-friendly living.

However, local zoning laws and residential building codes may restrict where these homes can be built or located (particularly for those on wheels). Other challenges include limited storage space and ensuring access to electricity and other utilities.

While many tiny homes don’t typically qualify for Conventional mortgages, buyers can opt for a personal or recreational vehicle (RV) loan for qualifying homes. Some lenders may offer loans for tiny homes built on foundations instead of wheels. 

5. Condos

Those purchasing a condo are buying into an ownership structure in which individuals own units within a shared building or property complex. That means apartments, townhomes (more on those below) and even detached homes can be condos, depending on the community.

Condos are generally more affordable than single-family homes depending on where they are located. Many also offer amenities, such as pools and fitness centers.

One of the big perks for buyers is they don’t need to worry about snow removal, mowing the lawn, or other repairs beyond the inside of their units.

However, buyers should be prepared to pay a monthly fee for property maintenance and upkeep and abide by guidelines governing everything from noise and pets to parking. They also don’t tend to appreciate in value by as much as single-family homes.

Mortgage lenders will typically want to review the condo association’s financial health and other details before issuing a loan, and buyers interested in FHA loans are limited to certain properties. 

6. Townhomes 

A townhome, also called a townhouse, is typically a multi-story home that shares walls with the next-door neighbors. This can include townhome-style condo complexes with amenities as well as the historic rowhomes commonly found in U.S. cities, like Brooklyn brownstones. The homes in the row typically share walls and an exterior façade but are otherwise single-family residences. 

Rowhomes are often larger than condos in a high-rise and often have backyards.

Some townhomes are governed by a homeowner’s association, or HOA, that charges a monthly fee and oversees community maintenance, finances, and other guidelines. Others are not.

“Reading through the rules and regulations and bylaws [to understand] what you can and can’t do in a community is huge, especially if there’s something specific you want to be able to do with the property,” Bender said.