Choosing between a townhouse and a condo in San Jose can feel confusing. You are weighing HOA rules, commute time, monthly costs, and how much control you want over your home. The right choice depends on legal structure as much as lifestyle. In this guide, you’ll learn the key differences, how ownership and financing work in California, what to expect in San Jose, and a simple framework to choose with confidence. Let’s dive in.
Quick definitions in California
What is a condo
A condominium is a form of ownership where you own the interior of your unit plus a shared interest in the common areas. An HOA manages the building and shared spaces. In practice, this often means the HOA handles exterior maintenance, roofs, and amenities, subject to the governing documents.
What is a townhouse
A townhouse is a building style, not a specific ownership type. It looks like a multi-story house that may share walls with neighbors. In California, a townhouse can be structured as a condominium or as fee-simple ownership of the home and lot. The legal structure determines what you own and maintain.
Why legal structure matters
In California, common interest communities are primarily governed by the Davis‑Stirling Common Interest Development Act. The legal setup drives maintenance responsibilities, insurance needs, lender underwriting, and HOA authority. For example, a fee-simple townhome owner usually maintains the exterior and roof, while a condo HOA may handle those items. Always review the recorded documents to confirm.
What you own and who maintains what
Condos: shared exterior, private interior
With condos, you typically own the interior “from the drywall in.” The HOA’s responsibilities often include exterior maintenance, roof, landscaping, common utilities, and amenities. Interior systems and finishes are usually your responsibility. Exact duties are spelled out in the CC&Rs and rules.
Townhomes: depends on legal structure
If a townhome is fee-simple, you likely own the structure and the land under it. That usually means you handle exterior paint, roof, fencing, and private yard maintenance. If a townhome is part of a condo association, the HOA may own or maintain more of the exterior. Clarify responsibilities before you write an offer.
Documents to review early
Request and read these items:
- CC&Rs, bylaws, and rules
- HOA budget, recent reserve study, and financial statements
- HOA meeting minutes from the past 6 to 12 months
- Master insurance declarations and any earthquake coverage details
- Litigation disclosures and delinquency reports
- Seller disclosures and local natural hazard reports
Monthly costs and HOA dues
Dues vary by coverage and amenities
In San Jose, HOA dues vary because buildings and services vary. Downtown and transit-oriented condos often include more shared services and amenities. Suburban townhome communities may have lower dues but shift more exterior costs to you. Higher dues can still be a value if they cover big-ticket items like roof and exterior.
Reserves and special assessments
Ask whether the reserves are adequate for upcoming projects. Reserve studies should detail future capital needs such as roofing, exterior painting, or seismic work. If reserves are low, you could face a special assessment that increases your monthly cost.
Insurance and earthquake considerations
Condo owners typically carry an HO‑6 policy that covers interior improvements, personal property, liability, and loss of use. The HOA’s master policy usually covers common elements and the building shell, but coverage type varies by declaration. Townhome owners with fee-simple lots often need broader dwelling coverage because they own exterior portions. Earthquake insurance is not automatic in most HOAs. In San Jose, consider whether the HOA has earthquake coverage for common areas and what deductibles could mean for owners.
Taxes and special levies in Santa Clara County
Property taxes follow California’s Prop 13 rules, so a purchase typically triggers reassessment to current market value. Some newer developments include Mello‑Roos or other community facilities district taxes that recur annually. Verify whether a property carries special taxes and budget for HOA assessments that might arise for capital projects.
Financing: what changes between condos and townhomes
Condo project approval
Many lenders require condo projects to meet specific eligibility criteria. Factors include owner-occupancy ratios, commercial space percentage, reserve adequacy, and litigation status. FHA and VA loans have their own project approval requirements. Some buyers can use single-unit approvals, but that adds steps.
Townhomes often underwrite like single-family
If the townhome is fee-simple, lenders often treat it like a single-family home. That can make financing simpler compared to a condo project review, though your income, down payment, and credit still drive approval.
What can derail a loan
High HOA delinquency, active litigation, or very low owner-occupancy can make condo financing difficult or more expensive. Ask your lender early about the project approval process, and verify details with the HOA before you commit.
Lifestyle and location tradeoffs in San Jose
Where each is common
- Condos typically cluster near downtown and Diridon, Santana Row, and major transit corridors. You may find more mixed-use buildings and high-density living here.
- Townhomes are common in suburban pockets and newer planned areas across San Jose, including parts of Willow Glen, Cambrian, Almaden, and North San Jose. Some townhome-style units sit inside condo projects, so confirm the legal form.
Commute and transit
North San Jose tech campuses, downtown and Diridon, and nearby Silicon Valley job centers pull many buyers. Condos near light rail, bus routes, and Caltrain can reduce driving if your job aligns with those corridors. If you rely on a car, a townhome may offer an attached garage and easier parking.
Parking, EV charging, and storage
EV charging is a common request. HOAs set policies for installing chargers in garages or common areas, and new construction may be EV-ready. Townhomes more often have private garages and extra storage. Urban condos may rely on assigned parking and storage lockers.
Space, privacy, and noise
Townhomes typically offer more square footage, vertical separation, and a private entry. Condos can be higher density with shared corridors and potential elevator reliance. Decide how much privacy and personal outdoor space you want.
Schools and household fit
If schools matter for your decision, check the exact address to confirm assigned districts and campuses. Some families prefer townhomes for the extra space, while many condo communities also work well for households that want a low-maintenance setup. Use neutral, address-specific research to compare options.
Safety and building condition
Seismic and soft-story concerns
Older multi-unit buildings may have soft-story vulnerabilities or other retrofit needs. Ask for any engineering reports and details on completed or planned seismic work. Upcoming retrofits can lead to special assessments.
What to request from the HOA
Request documentation on recent capital projects, balcony and exterior envelope conditions, drainage and termite history, and any planned work. Meeting minutes often reveal near-term issues the budget has not fully addressed yet.
A simple framework to decide
- Clarify lifestyle priorities
- Commute tolerance and transit access
- Private outdoor space or patio needs
- Parking needs and EV charging options
- Desire for low maintenance vs. control of exterior
- Build a realistic budget
- Base mortgage and property taxes
- HOA dues and what they include
- Any Mello‑Roos or special district taxes
- Insurance type and likely earthquake costs
- Reserve strength and risk of special assessments
- Align your financing
- Get preapproved and ask about condo project eligibility
- If buying a townhome, confirm whether it is fee-simple or condo
- Discuss down payment and interest impacts for investment or owner-occupant plans
- Check HOA health
- Reserve study and budget adequacy
- Planned projects and assessment history
- Delinquency rate and any litigation
- Rental caps and owner-occupancy ratio
- Walk the property and community
- Noise levels, parking, storage, and elevator reliability where applicable
- Mailbox access, loading zones, and guest parking rules
- General resident patterns and daily rhythm
- Inspect thoroughly
- General home inspection plus termite and roof
- For condos, ask about building envelope and common area condition reports
- Consider future flexibility
- Rental rules, pet policies, and EV approvals
- Resale considerations based on location and project stability
What to review before you write an offer
- Legal structure and map: fee-simple vs. condo regime
- CC&Rs, bylaws, rules, and architectural guidelines
- HOA budget, reserve study, financial statements, and delinquency report
- Master insurance declarations and earthquake coverage status
- Litigation disclosures and recent special assessments
- Owner-occupancy and rental percentage
- Recent capital projects and upcoming work
- Parking assignments, guest capacity, and EV policies
- Utility billing structure for water, gas, trash, and electricity
- Exterior envelope, balcony condition, drainage, and termite history
- Neighborhood context such as transit options, walkability, and likely noise sources
Which might fit you
- You want low-maintenance living near transit and amenities: A condo near downtown, Diridon, or Santana Row may match your commute and lifestyle if the HOA covers building exterior and shared spaces you use daily.
- You want more space and garage storage with manageable upkeep: A townhome in suburban pockets such as parts of Willow Glen, Cambrian, Almaden, or North San Jose can deliver a house-like feel while keeping some HOA support.
- You want flexible future use: Review rental caps and minimum rental periods in the CC&Rs. These rules shape investor options and resale pool.
Work with a local advisor
San Jose’s condo and townhome choices hinge on legal structure, HOA health, commute fit, and risk planning. If you want a clear plan that balances ownership goals, budget, and day-to-day life, let’s talk. Start your search with Aaron Buntin’s neighborhood-driven, tech-enabled approach and get straight answers at every step. Connect with Aaron Buntin to get started.
FAQs
What are the main differences between San Jose townhomes and condos
- Condos are an ownership form where you own the interior and share common areas. Townhomes describe a building style that may be fee-simple or a condo, which changes who maintains the exterior and roof.
How do HOA dues compare for San Jose condos vs townhomes
- Dues vary based on what the HOA covers. Urban condos often include more shared services and amenities. Fee-simple townhomes may have lower dues but shift exterior costs to the owner.
What should I know about condo financing in San Jose
- Many lenders require condo project approval that reviews reserves, litigation, owner-occupancy, and commercial space. This can add steps compared to fee-simple townhome financing.
Do San Jose condos or townhomes include earthquake insurance
- Earthquake coverage is usually not included by default. Confirm whether the HOA has earthquake insurance on common areas and decide whether to add owner coverage.
What is Mello‑Roos and could it affect my monthly cost
- Some newer San Jose developments have Mello‑Roos or special district taxes that recur annually. Verify whether a property carries these taxes and include them in your budget.
