It’s no secret that the price tags of single-family homes — the ideal dwelling in terms of space, independence, and resale value — have spiked, and many current homeowners have been reluctant to let go, but a buyer whose heart is set on a single-family home may be able to follow a playbook to find their prize.
Buying a single-family home isn’t dramatically different from purchasing another type of property, but the process has a few variations. Here are some guidelines.
Key Points
• A single-family home means a dwelling meant for one person or household, though beyond that definitions can vary slightly.
• Single-family homes can be either attached or detached, with attached properties sharing walls and detached homes standing alone on their own land.
• Benefits of buying a single-family home can include spacious, quiet living and long-term investment potential.
• Financing options for single-family homes can include conventional loans, FHA loans, VA loans, and USDA loans, each with different requirements and benefits.
• Typical costs associated with buying a single-family home include down payment, closing costs, and moving fees.
What Does Single-Family Home Mean?
The definition would seem easy enough, but it does vary according to real estate experts and government sources. The U.S. Census Bureau says single-family homes include fully detached and semi-detached homes, row houses, duplexes, quadruplexes, and townhouses. Each unit has a separate heating system and meter for public utilities, and has no units above or below.
According to other definitions of a single-family home, the building has no shared walls; it stands alone on its own parcel of land. In some places, the number of kitchens the home has informs the definition.
Unlike a multi-family property, a single-family home is meant for one person or household. Among the types of houses out there, including condos, co-ops, townhouses, and manufactured homes, the single-family home remains the holy grail for many Americans.
💡 Quick Tip: When house hunting, don’t forget to lock in your home mortgage loan rate so there are no surprises if your offer is accepted.
Attached vs Detached Single-Family Homes
Single-family homes can be either attached or detached. An attached property has one or more walls in common with another property – think townhouses or row houses. You may find them in locations like cities where land is expensive.
What is a single-family detached home? This may be what you think of when you imagine a single-farmily home. Detached houses do not share any walls and typically stand alone on their own dedicated plot of land.
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Benefits of Buying a Single-Family Home
While condos and townhouses may come with shared amenities and lower maintenance, traditional detached single-family homes come with different perks. When people buy a single-family home, they’re looking for benefits specific to this property type.
Spacious, Quiet, and Intimate
A single-family home is typically larger than a condo or townhome. Moreover, since the property is often on its own lot without shared walls, a single-family home offers more space and more privacy inside and outside the home.
Possibly No HOA
A co-op association or a condo or townhouse homeowners association sets and enforces rules and collects fees to pay for shared amenities. Anyone who buys into an HOA community must live by the CC&Rs: the covenants, conditions, and restrictions. These can be lengthy, and the ongoing fees can continually rise.
You may be able to buy a detached single-family home with no HOA and paint your mailbox, or house, pink or purple — unless you live in a city like Palm Coast, Florida, that allows only earth tones and light or pastel hues but no colors that are deemed “loud, clashing, or garish.” (As of July 2025, the town is considering loosening this restriction.)
Then again, HOAs are becoming more common for detached single-family homes in planned communities. In fact, about 65% of single-family homes built in 2022 were in an HOA.
Single-Family Home Appreciation
Generally, single-family homes are in higher demand than multi-family or other properties. Because of both the building and demand, when a person buys a single-family home, the value may increase faster.
Possibilities for Renovation and Expansion
When people buy single-family homes, they’re buying into the potential to expand or renovate extensively. If the lot is big enough, single-family homeowners could put an addition on the property.
Single-family homes can be an attractive buy simply because of the option to expand in the future, unlike properties with shared lots or walls.
Long-Term Investment Potential
Many homebuyers may have an eye toward selling their new property down the road. Historically, real estate has tended to appreciate in value, and single-family homes, which are currently in demand, are no exception. Detached homes may be more desirable to some, due to their land and the privacy it affords their owners, but attached homes, too, if well-maintained, have the potential to appreciate in value.
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💡 Quick Tip: Not to be confused with prequalification, preapproval involves a longer application, documentation, and hard credit pulls. Ideally, you want to keep your applications for preapproval to within the same 14- to 45-day period, since many hard credit pulls outside the given time period can adversely affect your credit score, which in turn affects the mortgage terms you’ll be offered.
How to Buy a Single-Family Home
Ready to buy a single-family home? Anyone from a first-time buyer to a seasoned investor may find appeal in a single-family home.
Recommended: First-Time Homebuyers Guide
1. Draw Up Your Financial Priorities
First, it’s important to look at finances. Your credit scores can have a significant impact on getting approved for a mortgage. To get a clear read on credit, but not scores, buyers can request free credit reports from the three major credit bureaus.
Additionally, it can be helpful for a qualified first-time homebuyer — who can be anyone who has not owned a principal residence in three years, some single parents, and others — to look into specialty mortgages and programs to see if they qualify for them.
A loan from the Federal Housing Administration (FHA) may allow a down payment as low as 3.5%. A USDA loan (from the United States Department of Agriculture) requires nothing down, and a VA loan (from the Department of Veterans Affairs) also usually requires nothing down. Some conventional lenders allow qualifying first-time buyers to put just 3% down.
It’s important to know, though, that all FHA loans require an upfront and annual mortgage insurance premium, regardless of the down payment size. VA loans require a one-time “funding fee.” And borrowers with conventional conforming loans who put down less than 20% will pay private mortgage insurance until their loan-to-value ratio drops to 80% and they request removal, or to 78%, when it falls off.
2. Decide on Your Preferred Type of Housing
No two houses are alike, just as no two homebuyers are. Everyone has different tastes and priorities about where they want to call home.
Before hitting every open house in town, consider deciding on must-haves for a single-family detached home, including privacy, proximity to businesses, size, and style. This could help determine if a single-family home is the right fit.
3. Arrive at Your Price Point
Armed with an understanding of the type of house, you can start thinking about the price point. In addition to considering the down payment, buyers will want to calculate a monthly mortgage payment and total loan costs.
Figuring out a price point before looking at homes can take the emotion out of the process. That way, buyers have a budget in mind and a “do not exceed” amount before they fall for a home.
4. Search for a Good Real Estate Agent
Buying a single-family home can be fun, stressful, and fast-paced. Working with a trusted real estate agent can make the process a little easier.
To find a real estate agent, you might consider:
• Reaching out to friends for referrals
• Checking out local real estate association websites
• Using an agent selling homes in the area you want to buy in
You might want to interview more than one agent, asking about their experience, availability, and philosophy. The choice of agent will likely come down to a combination of personality match and experience.
5. Find Your Neighborhood
Once you have an agent and budget, it’s time to dive deeper into neighborhoods. Once again, the choice of where to search will come down to the buyer; there’s no one “right” place to buy a single-family home.
As buyers explore neighborhoods, they might prioritize the following:
• School district
• Walkability
• Proximity to workplace
• Community resources
• Budget
An experienced agent can help buyers distill their priorities and even point them in the right direction. Typically, buyers will have to balance the above elements, as it might not be possible to check all the boxes in a single neighborhood.
6. Tour Homes With Your Agent
After buyers decide what neighborhoods they want to buy a single-family home in, it’s time to start touring properties.
When touring a single-family home with an agent, try to allot between half an hour to an hour. In the case of open houses, prospective buyers can walk in at any time, but private home tours require a buyer’s agent to gain access to the property.
When buying a single-family home, everyone will have their own checklist of what they want, which might include:
• Listing price
• Number of bedrooms and bathrooms
• Storage space
• Floorplan
• Plot of land
• Deck and porch
• Garage and driveway
It could help to take photos or notes while touring a home to refer to them long after you’ve left the property.
7. Choose a House and Bid
Found a place and ready to make an offer? Time to get a home loan in order. Luckily, buyers will have a good idea of what they can offer on a property based on their finances if they’ve done the upfront legwork.
Your agent can help with negotiating a house price.
How to make an offer? It pays to understand comps and the temperature of the market, and then:
• Figure out the offer price
• Determine fees
• Budget for an earnest money deposit
• Craft contingencies
With an offer drawn up, it’s time to submit it to the seller and wait for the next steps.
8. Review the Process and Get Ready to Move
Buying a single-family home isn’t a done deal once an offer is submitted. Typically there will be a back-and-forth, perhaps over offer price or contingencies.
Once everything is agreed on, and the inspection is resolved, it’s time to tally moving expenses and pack up.
9. Head to Closing and Move Into Your New Property
The final part of buying a single-family home is closing day. During closing, the buyer and seller meet with their agents to go over paperwork and settle any outstanding costs, and formally turn over property ownership.
Next, it’s just moving everything in and settling in. Even after closing, homeownership may feel overwhelming, but there are plenty of resources to make it easier.
Financing Options for a Single-Family Home
Most homebuyers will use financing to pay for their home, so it can be helpful to be aware of the options. Here are some of the most common mortgage types.
Conventional Loans
Conventional mortgages are issued by private lenders, like banks. The lenders typically want to see credentials like a credit score of at least 620 and a DTI ratio of 36% or less (though they may accept up to 43%). They may also require a down payment of up to 20%, though for first-time homebuyers, they may accept as little as 3%.
Bear in mind that borrowers with conventional loans who put down less than 20% will pay private mortgage insurance until their loan-to-value ratio drops to 80% and they request removal, or to 78%, when it falls off automatically.
FHA, VA, and USDA Loans
Government-backed mortgages are also popular among homebuyers who qualify for them. Because these loans are guaranteed by different government agencies (the Federal Housing Administration, the Department of Veterans Affairs, and the U.S. Department of Agriculture, respectively), there’s less risk for lenders, who can offer homebuyers easier terms. These may include lower interest rates, low or no down payments, and less stringent credit requirements.
An FHA loan may allow a down payment as low as 3.5%. A USDA loan has specific location and income requirements, but requires nothing down, and a VA loan also usually requires nothing down, though it’s only available to past or present service members and some military spouses.
It’s important to know, though, that all FHA loans require an upfront and annual mortgage insurance premium, regardless of the down payment size. VA loans require a one-time “funding fee,” and USDA loans come with fees as well.
Comparing Loan Terms and Rates
As you’re choosing how to finance your home, it’s important to compare different kinds of loans and options from different lenders to find the loan that will make the best financial sense for you. You may be living with your mortgage for the next 30 years, so it’s worth putting in the time now to make sure you get the best one possible.
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The Takeaway
Ready to buy a single-family home? The process before you may seem daunting, especially if it’s your first home purchase. But if you break it down into small steps and keep your budget and dream-house priorities top of mind, home sweet home may be closer than you think.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
FAQ
How much does it cost to buy a single-family home?
Zillow put the typical value of a single-family home at $371,110 in May 2025. New construction costs more. The median sales price of new houses sold in May 2025 was $426,600, according to the U.S. Census Bureau.
Can you buy a single-family home with no money down?
If a buyer qualifies for a mortgage backed by the Department of Veterans Affairs or Department of Agriculture, or one issued directly by those agencies, they may be able to purchase a home with no down payment.
What are the most important things to consider when buying a house?
Location (including property tax rate, quality of schools, walkability, crime rate, access to green space, and the general vibe), your ability to cover all the costs, duration of your stay, and square footage may be important.
How much should you have in savings to buy a single-family house?
You’ll need to have enough to cover a down payment, closing costs, and moving fees while ideally preserving an emergency fund.
What is the difference between a single-family home and a condo?
What does single-family home mean vs. condo? A single-family home is a dwelling owned by the homeowner. In a condo, the homeowner owns the interior of their unit, but the structure is part of a larger group of homes, which typically share various amenities, for which they may pay regular fees, and adhere to defined rules.
Photo credit: iStock/jhorrocks
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
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¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
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