Should you buy a condo or a townhome in Bellevue? Both offer low‑maintenance living and great Eastside access, but they work very differently when it comes to ownership, HOAs, insurance, and financing. If you’re trying to match your lifestyle and budget to the right fit, a clear side‑by‑side look can save you time and surprises. In this guide, you’ll learn how each option works in Washington, what to watch in HOA documents, how lenders view condos versus townhomes, and the Bellevue factors that tip the scales. Let’s dive in.
Ownership basics in Washington
What “condo” means legally
In Washington, a condominium gives you title to a defined interior unit plus a shared interest in the common elements like the land, roof, and building systems. Condos are governed by a recorded declaration and bylaws under the Washington Condominium Act (RCW 64.34). You can review the statute for how condos are formed, managed, and regulated in the state at the Washington code page for the Condominium Act (RCW 64.34).
What “townhome” means in practice
“Townhome” usually describes a building style, not a single legal structure. Some townhomes are fee‑simple, which means you own the land and the structure like a house. Others are legally organized as condominiums, even if they look like side‑by‑side homes. The only way to know is to check the recorded declaration and plat. Learn more about how labels differ from legal form in this condo vs townhome overview.
HOAs, maintenance, and reserves
Who handles what
- Condos: The association typically handles and insures the exterior, roof, and shared systems, funded by monthly dues. That can simplify your to‑do list but usually means higher dues. You still insure your interior and belongings.
- Townhomes: In fee‑simple communities, you often maintain your own exterior, roof, and small yard. The HOA, if present, may handle shared items like private roads, landscaping, or trash service. In “townhome condominiums,” the association may still cover exteriors, so the documents matter more than the label.
Recent Bellevue listings show HOA dues that vary widely by age, amenities, and what the fees cover, roughly from about 200 dollars per month for lower‑service townhome communities to 700 dollars or more for amenity‑rich buildings. Always confirm what the dues include.
Reserves and special assessments
Washington requires associations to prepare and disclose reserve studies and budgets in many cases. As a buyer, ask for the current budget, the latest reserve study, and the current reserve balance to gauge whether future projects are funded. Review the statutory framework for homeowner associations in RCW 64.38. Associations can levy special assessments when reserves fall short. Delinquency rates and any recent or pending special assessments are key items to check before you write an offer.
Insurance: master policy vs your policy
In condo buildings, the association’s master policy insures the building shell and common areas. You carry an individual condo policy (HO‑6) that covers your interior finishes, personal property, liability, loss of use, and often loss‑assessment coverage. Get the master policy’s declarations page and confirm what “bare walls,” “single‑entity,” or “all‑in” coverage means for you. See this clear guide to condo insurance basics.
Two pro tips help you avoid surprises:
- Confirm the master policy deductible and make sure your HO‑6 has enough loss‑assessment coverage to match it. Here’s a practical explainer on master policy deductibles and HO‑6 coverage.
- If the townhome is fee‑simple, you’ll usually carry a standard homeowners policy (HO‑3 or HO‑5) because you insure the structure and the land yourself.
Financing and resale considerations
How lenders view condos
Many lenders underwrite condo loans at both the borrower level and the project level. Fannie Mae, Freddie Mac, and others review a project’s budget, reserves, insurance, owner‑occupancy, investor concentration, commercial space, delinquencies, and litigation. If a project fails those standards, financing options can narrow. You can see Fannie Mae’s criteria in their condo project standards.
FHA approvals and Single‑Unit Approval
If you need FHA financing, check whether the building is FHA approved or whether your unit can qualify for Single‑Unit Approval. Knowing this early avoids deal‑breakers later. Read more about FHA condominium eligibility and approvals.
Townhome lending
Fee‑simple townhomes are typically underwritten like single‑family homes, which can make financing simpler. If the townhome is legally a condo, condo project rules apply. Always confirm the recorded ownership type before you shop loans.
Resale and buyer pool
Condos can appeal to price‑sensitive buyers and those who want amenities and walkability. Townhomes often attract buyers who want private entries, garages, and more control over exterior features. In every cycle, association health, building quality, and location drive resale more than the label alone.
Bellevue lifestyle lens
Where you plan to live in Bellevue can tilt the decision. Downtown Bellevue offers many mid‑ and high‑rise condos with quick access to restaurants, shopping, and transit. Townhomes are common in close‑in neighborhoods and infill sites, often giving you a garage, more storage, and small outdoor spaces. With the East Link light‑rail expansion, areas near new stations, including the Bel‑Red/130th area, may see stronger demand for denser housing. Explore the project details and timing on Sound Transit’s Bel‑Red/130th Station page.
Quick decision guide
Use these prompts to match your priorities to the right fit:
- Choose a condo if you want low‑maintenance living, building amenities, smaller footprints, and downtown access. Confirm the association’s finances and rules first. A quick overview of how condo responsibilities work is in this condo insurance guide.
- Choose a fee‑simple townhome if you want a private entry, garage or driveway, potential yard ownership, and simpler conventional financing. Confirm the legal form because some townhomes are structured as condos. Here’s a refresher on condo vs townhome structures.
- Rely on FHA or VA financing, or plan to rent out your unit? Verify condo project approvals, rental caps, and GSE/FHA eligibility upfront. Start with the HUD FHA condo resource.
Tour and due‑diligence checklist
Ask for these documents before or at offer time, and build your offer timelines to review them thoroughly:
- Resale certificate or public offering statement, as applicable. Washington’s modernized common‑interest laws expand buyer protections and disclosure expectations. See this overview of WUCIOA and buyer review rights.
- Current annual budget, the latest financials, and the most recent reserve study. These reveal whether big projects like roofs and envelopes are funded. Review the HOA statute for reserves and disclosures in RCW 64.38.
- Association master insurance declarations page. Confirm coverage type and the master deductible, then match your HO‑6 or HO‑3 accordingly. Here’s a helpful condo insurance explainer.
- Board minutes for the last 12 months. Look for upcoming assessments, building issues, and enforcement trends.
- Litigation statement or disclosure. Active construction‑defect suits can affect lending.
- Community rules for rentals, pets, parking, and short‑term stays. Make sure they fit your plans.
- Ask the listing agent: current owner‑occupancy rate, percent of units delinquent on dues, and any planned capital projects. Lenders often review these metrics under Fannie Mae’s project standards.
- Confirm the legal form of ownership. Is the townhome fee‑simple or a condo in the recorded declaration? A “townhome” label is not enough. See this legal form overview.
- Physical checks while touring: roof age, signs of water intrusion, elevator condition in mid‑ and high‑rises, envelope cracks, fire‑life‑safety systems, parking and storage assignments, and EV‑charging readiness.
What’s changing in Washington
Washington’s updated common‑interest law, the Washington Uniform Common Interest Ownership Act (WUCIOA, RCW 64.90), is phasing in new governance and disclosure standards over the next few years. These updates aim to improve transparency around budgets, reserves, and meetings. Stay current by following this summary of WUCIOA changes and timelines.
Ready to compare homes?
If you’re deciding between a Bellevue condo and a townhome, we can help you weigh HOA health, financing options, and neighborhood tradeoffs in plain English. Our education‑first approach gives you a clear path from shortlist to keys in hand. Reach out to the Tamara Paul Group to plan your next move with confidence.
FAQs
What is the main difference between a condo and a townhome in Washington?
- A condo gives you title to the interior unit plus a shared interest in common elements under RCW 64.34, while a townhome is a building type that may be fee‑simple land ownership or legally a condo; the recorded documents control.
How do HOA dues and responsibilities differ for condos vs townhomes?
- Condo HOAs usually handle and insure exteriors and shared systems, funded by monthly dues, while fee‑simple townhome owners often maintain their own exteriors with HOAs covering only shared items; always confirm in the documents.
What insurance do I need for a Bellevue condo or townhome?
- Condos typically require an HO‑6 policy to cover walls‑in, belongings, liability, and loss assessment alongside the association’s master policy; fee‑simple townhomes usually need an HO‑3 or HO‑5 homeowners policy that covers the structure and land.
How does FHA financing work for Bellevue condos?
- FHA loans require the project to be FHA approved or to qualify for Single‑Unit Approval; checking approval status early is essential because it can make or break financing.
What HOA documents should I review before making an offer?
- Ask for the resale certificate or public offering statement, budget and financials, the reserve study, master insurance declarations, the last 12 months of board minutes, community rules, litigation status, and key metrics like owner‑occupancy and delinquencies.
