An apartment is part of a collection of similar units in one building structure. An important feature is that you have to rent the place from a landlord. Oftentimes, apartments have many convenience factors like an on-site repair worker, laundry, gym facilities or a pool. Though you don’t get as much privacy and you won’t be building equity on your residence, there are many additional pros and cons to weigh when deciding whether to buy or rent.
- Pros: Repairs and maintenance are taken care of
- Cons: No option to purchase, less flexibility and freedom
At this time, Rocket Mortgage® doesn’t offer loans for apartments.
If you like the conveniences that come with an apartment but are looking to own, a condo might be a great fit for you. Instead of having a building manager or landlord oversee your unit, you’re in charge of all the repairs and the upkeep. Condos are a great option for city living and for older adults who want to own and have a mortgage but don’t want to deal with the upkeep of a single-family home.
- Pros: Less upkeep than a single-family home, with the benefits of homeownership
- Cons: Less privacy and free agency
A co-op is also known as a housing cooperative. This type of housing is quite different from the others. When you buy into a co-op, you’re buying a share of the company that owns the building rather than actual property. The number of shares you own typically correlates to how much space you’re afforded in the co-op. Once accepted into a co-op and after purchasing shares, you’ll have a vote on common spaces, and you’ll split maintenance costs and other fees.
- Pros: Great sense of community, less expensive than a traditional home
- Cons: Less freedom, must get group approval
At this time, Rocket Mortgage® only offers co-op loans in the state of New York and only in areas where co-ops are common.
4. Single-Family (Detached)
The key feature of a single-family home is that it’s completely detached from other housing units, unlike condos, apartments or townhomes. The majority of homes in the U.S. are single-family homes. They’re less common in highly populated areas and are typically found in suburbs. Single-family homes are usually more private and there are more options for personalization.
- Pros: Greater privacy, more freedom
- Cons: Typically cost more to maintain and own