7 Types of Homes You Can Finance, It's Not Just Single Family
A single family home with a yard is the default picture most buyers have in their head, but it is far from the only path to homeownership. Here are seven property types worth knowing about, and how financing changes for each one.
If You Want Someone Else to Handle the Yard Work
A condo is one of the most popular alternatives to a single family home, mostly because someone else handles the exterior upkeep. Many condos qualify for FHA financing with a lower down payment requirement, which makes them an appealing entry point for first time buyers. Just factor in the HOA fee, since it adds a real monthly cost that varies a lot from one community to the next.
A detached condo is a variation worth knowing too. It looks like a regular house from the street, but it is legally classified as a condo, which means you get more privacy and space while still keeping some of the lower maintenance benefits.
If You Want Built In Rental Income
A multi-unit property with two to four units lets you live in one unit while renting out the rest. That rental income can help cover your mortgage and other costs, all while you build equity every month. This is a popular route for buyers who want their home working for them financially, not just a place to live.
If You Need Space for Family Under One Roof
An accessory dwelling unit, sometimes called a coach house or backyard cottage, is a smaller living space added onto an existing property. It is a smart option for aging parents or adult kids moving back home, since it adds real living space without the cost of buying a bigger house outright.
If You’re Buying in a Community With Shared Amenities
A planned unit development, or PUD, typically includes shared amenities like parks, pools, or tennis courts, and often mixes single family homes, townhouses, and condos within the same community. Like condos, PUDs usually come with an HOA, so it is worth understanding what that fee covers before you fall for the amenities.
If Affordability Is Your Top Priority
Manufactured homes have come a long way from their old reputation. Since 1976, they have followed strict quality standards for heating, plumbing, air conditioning, and wiring, and many today have modern layouts and updated finishes at a lower price point than a site built home.
If You’re Buying in a Bigger City
A co-op works differently than most homeownership. Instead of buying a specific unit, you buy shares in a corporation that owns the entire building, and your shares determine which unit you get to live in. Co-ops are more common in larger cities, tend to be more affordable than condos, but usually come with stricter approval requirements and more rules from the building itself.
The Part That Trips Buyers Up
Not every property type qualifies for the same loan program. A condo, a manufactured home, and a multi-unit property can all have different down payment requirements, occupancy rules, and approval processes. We regularly help buyers figure out which property type actually fits their budget and goals before they fall in love with a home that does not fit their financing.
If you are weighing your options across Naperville, Aurora, Oswego, or Plainfield, a quick lender conversation early on can save you a lot of guesswork later.
Frequently Asked Questions
What type of home is easiest to finance near me?
Single family homes and condos are usually the most straightforward to finance, but the right fit depends on your budget and goals. We can walk you through what makes sense for your specific situation in the western suburbs.
Can I get an FHA loan for a condo?
Some condos qualify for FHA financing with a lower down payment requirement. Not every condo community is FHA approved, so it is worth checking early in your search.
Is a manufactured home a good investment?
It can be, especially for buyers focused on affordability. Manufactured homes today are built to modern quality standards, though financing options can differ from a traditional site built home.
Do multi-unit properties require a bigger down payment?
It depends on the loan program and whether you plan to live in one of the units. A lender can walk you through the specific requirements for a multi-unit purchase.
Not sure which type of home fits your budget and your life right now? Let’s talk through your options, and we can point you to a trusted local lender who can lay out exactly what you qualify for. Book a consultation with us here. You can also start browsing homes anytime on our Zenlist search.
Ready to make your next move in the western suburbs of Chicago?
We are here to help you every step of the way, whether you are buying, selling, or just exploring your options.
Julia Corkey & Vickie Schoenfeld
Team Elite Realtors at Baird & Warner
630-286-9777 | [email protected] | www.homesbyteamelite.com
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