If someone asked you to describe your “dream home,” what picture would pop into your mind? A single-family home with a big backyard, or a high-rise condo with a view? Maybe you’ve always longed to live on a houseboat.
Only you can decide which of the many house types out there is best for you or your family. This guide to the different types of homes available to buyers could help narrow your search.
Key Points
• There are a wide variety of home types, including apartments, condos, co-ops, single-family homes, tiny houses, townhomes, modular homes, manufactured homes, cabins, floating homes, and more.
• Detached, land-heavy homes typically cost more and carry more maintenance burden, while smaller or shared-wall types (condos, townhomes) tend to be more affordable but come with trade-offs.
• Popular types of home architectural styles include Cape Cod, contemporary, farmhouse, midcentury modern, split-level, and more.
• The best home-type for you will depend on your priorities: privacy, budget, location, community, maintenance load.
• To purchase a home, you’ll need a down payment, a solid credit score to qualify for the best available interest rate, and a good debt-to-income ratio.
Table of Contents
Common Types of Houses
As you think about where you’d like to live or what you need to buy a house, you can probably rule out a few of these home types right away. From there, it may be helpful to look at the pros and cons of different home types side by side to narrow your search.
1. Apartments
The definition of an apartment can get a bit complicated because it changes depending on where you live. When someone talks about how to buy an apartment in New York City, for example, they might be referring to a condo or co-op.
Generally, though, an apartment is one of several residential units in a building owned by one person or company, and the owner rents each unit to individual tenants.
There are some pluses to that arrangement, especially if you take advantage of amenities like a gym or swimming pool. Monthly costs for utilities and insurance may be low, too. Because it’s a rental, though, you can’t build any equity. Also, if you want to stay or go, or make some changes to the apartment, you’re typically tied to the terms of your lease.
Pros and Cons of Renting an Apartment
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Pros:
• Do not need a big down payment
• Repairs usually aren’t the tenants’ responsibility
• Lower monthly bills (especially if rent includes utilities)
• May have shared amenities
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Cons:
• May have to come up with a large security deposit
• Tenants don’t build equity (so there’s no return on investment)
• Tenants can lose their deposit if they break their lease
• Can’t make changes without permission
2. Condos
If you like some of the upsides of apartment living but you want a chance to build equity with each payment, you may enjoy owning a condo. Condo living isn’t for everyone — a house vs. condo quiz could help you decide between those types of homes — but a condo is a good choice for some.
You’ll share walls with other residents but will own your unit. That means you’ll be in charge of the repairs and upkeep on the interior, but you won’t have to worry about lawn maintenance, cleaning and fixing the pool, or exterior repairs. (You’ll likely pay a monthly or quarterly fee to cover those costs, though.)
When you purchase a condo, you’ll have a chance to build equity over time as you make your home loan payments, but if the homeowners association (HOA) is poorly managed, your condo may not increase in value the way a home you care for yourself might.
Pros and Cons of Buying a Condo
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Pros:
• Owners often can build equity
• Mortgage may be less expensive than that of a single-family home
• Less maintenance than a single-family home
• Shared amenities
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Cons:
• Owners pay for interior maintenance
• Less privacy than a single-family home
• Condo fees add to monthly payment
• Single-family homes may increase in value faster
3. Co-ops
When it comes to condos vs. co-ops, it’s important to understand the differences if you’re shopping for a home or plan to.
The main difference is the ownership arrangement: When you buy into a co-op, you aren’t purchasing your unit; you’re buying shares of the company that owns the property. The market value of your unit determines the number of shares you own. Your shares determine the weight of your vote in what happens in common areas, and you’ll also split maintenance costs and other fees with your fellow residents based on how many shares you own.
Because co-op residents don’t actually own the units they live in, it can be challenging to find financing. Instead of a mortgage, you may have to get a different type of loan, called a co-op loan or share loan. And because of co-op restrictions, it may be difficult to rent out your unit.
Still, buying into a co-op may be less expensive than a condo, and you may have more control over how the property is managed.
Pros and Cons of Buying into a Co-Op
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Pros:
• Often less expensive than a similarly sized condo
• Shareholders have a voice in how the property is managed
• Partners may have a say in who can purchase shares
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Cons:
• May be difficult to find financing
• May require a larger down payment than a condo purchase
• Co-op restrictions can make it tougher to buy in, and to rent your unit
4. Single-Family Homes
When someone says “house,” a single-family home is the type of structure most people probably think of — with a backyard, a garage, maybe a patio or front porch. Even if the yard is small, the house sits by itself. That can mean more privacy and more control over your environment.
Of course, that autonomy can come with extra costs, including higher homeowners insurance, taxes, maintenance and repairs, and maybe HOA fees.
The down payment and monthly payments also can be challenging, but buyers usually can expect the value of their home to increase over time.
And if you need money down the road — for a child’s education or some other planned or unexpected expense — you may be able to tap into home equity. Or you might plan to pay off the mortgage in 20 or 30 years and live rent-free in retirement.
Recommended: What Is a Single-Family Detached Home?
Pros and Cons of Buying a Single-Family Home
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Pros:
• Privacy and control
• Build equity if housing prices increase
• Change or update your house in any way you choose (following HOA rules, if they apply)
• Rent out your house if you choose, or renovate and sell for a profit
• May have shared amenities as part of an HOA
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Cons:
• Single-family homes tend to cost more than condos
• Maintenance and repairs can get expensive
• Property taxes (and HOA fees if applicable) can add to homeownership costs
• Putting in and maintaining a pool or gym may be up to the homeowner
• Utilities and energy costs are often higher than in condos or townhomes
5. Tiny Homes
Tiny homes, which usually have 400 square feet of living space or less, have a huge fan base. Some tiny houses are built to be easily moved, giving the owner physical freedom. Some are completely solar-powered and built to be eco-friendly. Many can be constructed from kits.
One downside is finding a place to legally park the tiny home. In most parts of the country, they are classified as recreational vehicles, not meant to be lived in full time, and usually only allowed in RV parks or campgrounds.
Another challenge is tiny house financing. Options include a personal loan, builder financing, a chattel mortgage (a loan for a movable piece of personal property), and an RV loan if the tiny house meets the Recreational Vehicle Industry Association’s definition of an RV: “a vehicular-type unit primarily designed as temporary living quarters for recreational, camping, or seasonal use.”
A not-tiny consideration is making use of such a small space. Many people may not last long in a tiny home.
Pros and Cons of Buying a Tiny Home
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Pros:
• Low costs all around
• Environmentally efficient
• Easy to relocate if on wheels
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Cons:
• Limited legal parking locations
• Financing can be a challenge
• It’s tiny!
6. Townhomes
A townhome or townhouse can look and feel like a detached house, in that it has its own entrance and may have its own driveway, basement, patio or deck, and even a small backyard. But these row houses, which are often found in cities like New York City, San Francisco, and Washington, D.C., and usually have multiple stories, share at least one common wall with a neighboring home.
Those shared walls can make buying a townhouse more affordable than a comparable detached home. And owners who belong to an HOA with neighboring homes generally don’t have to worry about exterior upkeep, although owners of townhouses classified as fee simple are responsible for exterior maintenance of their structure and sometimes the surrounding yard.
The HOA also may offer some amenities, but that monthly or quarterly HOA fee will add to overall costs, and may rise over time.
Pros and Cons of Buying a Townhome
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Pros:
• May cost less than a similar single-family home
• Little or no outdoor maintenance
• Shared amenities
• Several mortgage options
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Cons:
• HOA fees may be high
• HOA restrictions
• Multiple levels may be a problem for some
• Less privacy, more noise from neighbors
7. Modular Homes
A modular home is made up of sections that are built in a factory, transported to a homesite, and assembled on a foundation there. This makes them different from traditional stick-built homes, which are constructed completely on-site. Both types of houses are held to the same local, state, and regional building codes.
Because the assembly-line part of the process is cost-effective, a modular home may be less expensive. Also, because weather isn’t a factor for part of the work, you can probably expect fewer delays.
Most modular homes are sold separately from the land. So if you already own a piece of property or like the idea of building outside a traditional neighborhood, a modular home might be a good choice.
Many people who choose a modular home use a construction loan for the build or a construction to permanent loan. A personal loan or use of home equity from an existing home are other options.
Pros and Cons of Buying a Modular Home
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Pros:
• Can be less expensive than a similar stick-built home
• May experience fewer construction delays
• Quality is as high or higher than a site-built home
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Cons:
• Land, site prep, and other costs are separate on new modular homes
• Future buyers may prefer stick-built homes
• Financing can be tricky
8. Manufactured Homes
Manufactured homes, formerly known as mobile homes, are built completely off-site and then transported to the homesite and placed on a temporary or permanent foundation.
Manufactured homes are not held to the same local, state, and regional standards as stick-built or modular homes. Instead, they must conform to construction and installation standards set by the U.S. Department of Housing and Urban Development, and local land use and zoning regulations restrict where they can be placed.
Of course, there are plenty of communities that are designed just for manufactured homes, although the land in many of these “parks” is rented, not owned.
A growing number of lenders are providing conventional and government-insured mobile home financing. The loans, backed by the Federal Housing Administration (FHA) or U.S Department of Veterans Affairs (VA), are offered by approved lenders.
The most common method of financing is an installment contract through the retailer. Depending on your situation, a personal loan or chattel loan could provide a shorter-term path to financing a manufactured home.
Pros and Cons of Buying a Manufactured Home
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Pros:
• The entire home is built off-site, so no weather delays
• More affordable than other detached homes
• May be able to move the home from one site to another
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Cons:
• Financing may be more challenging
• Lot fees may be high and rising
• You own the home but not the land under it
9. Cabins
Most people tend to think of a cabin as a cozy second home that’s made of logs or covered in cedar shakes, but there’s no reason a cabin can’t be your primary residence.
Just as with any other type of property, the price of a cabin can vary based on size, age, location, and amenities. If there’s an HOA, those fees can add to the cost.
If you’re considering a cabin because you’re buying a vacation home — aka a second home — know that loans for second homes have the same rates as primary homes. A 20% down payment is typical.
Pros and Cons of Buying a Cabin
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Pros:
• You’re buying your very own getaway
• You’re buying a rental property
• Could become your primary home in the future, or a legacy for future generations
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Cons:
• A second home could mean two loan payments and two sets of bills
• You might have to do repairs at inconvenient times
• Maintenance can get expensive
10. Multifamily Homes
Investors know the difference between single-family vs. multifamily homes.
For owners, the big advantage of a multifamily home is that it offers flexibility. Homeowners can buy a home with multiple units and rent out the spaces for extra income. Or an adult child or parent might decide to move into that secondary space.
These properties can be a good investment.
Do accessory dwelling units make a property a multifamily? It depends. Fannie Mae says a property may be classified as a two-unit property or single family with ADU based on the characteristics of the property.
Pros and Cons of Buying a Multifamily Home
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Pros:
• Can share costs with others (renters or family members)
• Keeps multigenerational family members close but gives them their own space
• Can be a good investment
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Cons:
• May be more expensive than a single-family home
• Managing renters could be stressful
• Lack of privacy
11. Houseboat or Floating Home
Living in a home that’s actually on the water — not just near it — can be a dream come true … or a challenge.
Some floating homes are as big as a small house — and are built to be lived in in the same way — only on a floating foundation. Houseboats or liveaboards are typically much smaller than floating homes and more mobile, and they may not have the amenities a larger home can offer.
There are also substantial differences in what it can cost to buy and maintain these water residences. A floating home may cost much more upfront than a houseboat, but the insurance, taxes, and day-to-day costs of keeping a houseboat operating can run higher. And there may be more loan options available, including traditional mortgages, for those buying a floating home.
Pros and Cons of Living on a Houseboat
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Pros:
• Constant view of water and nature
• Often cheaper than traditional housing, with lower property taxes and maintenance costs
• Reduced carbon footprint and often simpler, more eco-friendly living
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Cons:
• Regular maintenance can be time-consuming and costly
• Strict rules and regulations can limit where you can dock and how you can use your houseboat
• Smaller living areas can be restrictive, especially for larger families
12. Duplexes and Triplexes
Duplexes and triplexes make for a good home and also a solid investment opportunity. These multi-unit properties allow you to live in one unit while renting out the others, providing a steady stream of passive income. This arrangement can significantly offset your mortgage and other living expenses, making homeownership more affordable and financially viable.
Additionally, living on the property can help you keep a closer eye on maintenance and tenant relations, ensuring that everything runs smoothly and that your investment remains in good condition.
Recommended: What Is a Duplex? Should You Consider Owning One?
Pros and Cons of Buying a Duplex or Triplex
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Pros:
• Renting out the additional units can provide a steady stream of passive income
• Multiple units can reduce the financial impact of a single vacancy
• Multi-unit properties often appreciate in value over time
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Cons:
• The purchase price of a duplex or triplex is typically higher than that of a single-family home
• Managing multiple tenants can be time-consuming and may require more hands-on involvement
• Living in close proximity to tenants can sometimes lead to privacy issues
Luxury Homes
Luxury homes are a class apart, offering an unparalleled level of comfort, style, and sophistication. These properties are designed to provide a premium living experience, often featuring spacious and elegantly appointed rooms, high-end finishes, and state-of-the-art amenities.
Beyond the physical attributes, luxury homes are often located in prime areas, offering access to the best schools, shopping, dining, and entertainment options. These properties are typically situated in prestigious neighborhoods or gated communities, providing a sense of security and privacy.
But you get what you pay for, and luxury homes can run into the millions. You may need a jumbo loan to finance the property, and those come with stricter qualification criteria, including high credit scores and significant cash reserves.
Pros and Cons of Buying a Luxury Home
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Pros:
• Luxury homes can enhance your daily living experience
• Owning a luxury home can be a symbol of success and wealth
• Luxury homes tend to hold their value well and appreciate over time
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Cons:
• The purchase price is significantly higher than most other home types
• Maintenance, utilities, property taxes, and insurance for luxury homes can be much higher
• The pool of potential buyers for a luxury home is smaller, which can make it more challenging to sell or rent out
Comparing House Types
Whether you’re thinking about buying a single-family home, condo, tiny home, houseboat, or townhome, it’s important to keep your priorities in mind. Here are a few things to consider:
Finding Your Fit
| If privacy is a priority, you might consider a … |
• Single-family detached home • Tiny home (on a large lot) • Modular or manufactured home • Cabin • Luxury home |
| If space is a priority, you might consider a … |
• Single-family detached home with an open floor plan • Larger condo, townhome, or co-op • Larger floating home • Luxury home |
| If affordability is a priority, you might consider a … |
• Smaller single-family home • Condo, co-op, or townhome • Tiny house • Modular or manufactured home • Cabin |
| If a sense of community is a priority, you might consider a … |
• Single-family home with community amenities • Condo, co-op, townhome, or apartment • Multifamily home |
| If uniqueness is a priority, you might consider a … |
• Tiny home • Cabin • Floating home or houseboat |
| If schools are a priority, you might consider … |
• Any home in a neighborhood that’s conducive to families with young children |
| If public transportation is a priority, you might consider a … |
• Condo, co-op, townhome, multifamily home, or single-family home in a larger town or city |
Popular Types of Home Architectural Styles
Home architectural styles vary widely, each offering unique aesthetic and functional features that cater to different tastes and lifestyles. Below are 11 options to consider.
1. Cape Cod
Typically featuring a steeply pitched roof with a small overhang and a central chimney, Cape Cod homes are often one or one-and-a-half stories tall with dormer windows to increase attic space. The exterior is usually clad in shingles or clapboard, and the interior is characterized by cozy, efficient layouts with hardwood floors and wood-paneled walls.
2. Colonial
A colonial home is a symmetrical, two-story design with a centered front door, evenly spaced multi-pane windows, and a simple, traditional look. It often features brick or wood siding, a gabled roof, and a classic, balanced layout with living areas downstairs and bedrooms upstairs.
3. Contemporary
A contemporary home features clean lines, open floor plans, and large windows that bring in natural light. It often uses modern materials like glass, steel, and smooth wood finishes. The design focuses on simplicity, minimal ornamentation, and a seamless connection between indoor and outdoor spaces.
4. Craftsman
A craftsman home is known for its warm, handcrafted feel, featuring a low-pitched roof, wide front porch with thick square or tapered columns. It also may have exposed beams or rafters. These homes often use natural materials like wood and stone, with built-in cabinetry and detailed woodwork inside for a cozy, inviting look.
5. Greek Revival
Greek Revival homes are often large and grand. They feature tall columns or pilasters, symmetrical facades, and a bold, prominent entryway. These homes often have white or light-colored exteriors, pedimented gables, and large windows. The overall look is grand, formal, and elegant, emphasizing strong architectural lines and historic character.
6. Farmhouse
A farmhouse-style home is warm, simple, and functional, often featuring a large front porch, gabled roof, and spacious, open interior layout. Natural materials like wood and stone are common, along with neutral colors and cozy finishes. The style balances rustic charm with comfortable, family-friendly design.
7. Midcentury Modern
A midcentury modern home is known for its clean lines, minimalist design, and integration with nature. These homes often feature flat or low-pitched roofs, large windows, and open floor plans that emphasize natural light and indoor-outdoor flow. Materials include wood, glass, and steel.
8. Ranch
Ranch homes — the most popular home style — are single-story homes with long, low, horizontal layouts. They usually feature an open floor plan, large windows, and easy access to the outdoors, often through sliding doors leading to a patio or yard. The style emphasizes simplicity, accessibility, and casual living.
9. Split-Level
A split-level home has staggered floor levels, typically with a main living area on one floor and short sets of stairs leading to upper and lower levels. This layout provides separation between spaces, such as bedrooms upstairs and a family room or basement downstairs. The style maximizes square footage on smaller lots while maintaining an open feel.
10. Tudor
A Tudor home is known for its steeply pitched roofs, tall narrow windows, and decorative half-timbering on the exterior. The design often includes brick or stone details, giving it an old-world, storybook charm. Inside, you’ll often find cozy rooms, wood accents, and traditional craftsmanship.
11. Victorian
A Victorian home was built in the Victorian era, and often features intricate trim, patterned shingles, and vibrant exterior colors. These houses usually have steep roofs, bay windows, and wraparound porches. Inside, Victorian homes tend to include detailed woodwork, high ceilings, and a mix of formal, elegantly styled rooms.
The Takeaway
Understanding the different types of homes before you begin your search for a place to live can help you find your dream home more quickly, and free you up to take on other homebuying tasks. Besides choosing the type of home you want, you’ll also have to decide how to finance this important purchase if you’re not paying cash. A good way to start is to shop and compare rates.
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
What type of house is cheapest?
Condos, co-ops, townhomes, and manufactured homes all tend to be less expensive than single-family homes. Among new single-family homes, modular homes tend to be the least expensive because they are made in a factory and assembled on-site.
What is the difference between a modular and manufactured home?
A modular home is built in sections at a factory and transported to the site for assembly, often adhering to local building codes. A manufactured home, or mobile home, is entirely constructed in a factory and placed on a permanent chassis, following federal standards.
Which home type is best for first-time buyers?
The best type of home for first-time buyers depends on their lifestyle, preferences, budget, and goals. Condos and townhomes generally have lower prices and less maintenance, but single-family homes offer more space and privacy.
Can you get a mortgage for any type of home?
Yes, you can get a mortgage for various types of homes, including condos, townhomes, and single-family homes. Each has specific requirements and may involve different loan programs, but most lenders offer mortgages for these home types, making it accessible for buyers to finance their purchase.
What style of home is most popular?
Ranch-style homes are currently very popular due to their single-story design, which offers easy accessibility and open floor plans. Modern and contemporary styles are also gaining traction, especially among younger buyers, for their sleek designs and energy efficiency.
Photo credit: iStock/CatLane
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