What Is A Single-Family Home And Is It Right For You?

From cozy condominiums to towering townhouses, “home sweet home” can look different for everyone. However, a single-family home is probably the residential property type most associated with our mainstream idea of home: four walls, a roof, a yard and an optional white picket fence.

Let’s dive into the definition of a single-family house and explore the pros and cons of single-family homes.

What Is A Single-Family Home?

The definition of a single-family home will vary based on who you ask. In general, a single-family home is a free-standing residential structure intended for use by one owner as a single-dwelling unit. With rare exception, it has no shared walls and it stands on its own land.

Are Attached Dwellings Considered Single-Family Homes?

In some cases, yes. For example, the U.S. Census Bureau considers attached dwellings, such as townhouses, to be single-family homes if they’re separated by a ground-to-roof wall.

Detached or not, a single-family home is typically defined by two fundamental factors: who owns what and the property’s ability to function as a standalone unit.

Terms Of Ownership For A Single-Family House

The owner of a single-family house owns the building and the land it sits on. Contrast this with condo ownership, where an owner owns what’s inside their unit and jointly owns common areas with other condo association members.

Single-family homes can’t share any utility, heating or air conditioning systems with other dwellings, and they must have private entrances and exits and have direct access to the street.

The Pros And Cons Of Single-Family Homes

Single-family homes are great for home buyers looking for the quintessential homeownership experience and everything that comes with it: privacy, a yard and the freedom to do (mostly) what you want with your home. However, that freedom comes with a lot of responsibility. If you’re considering purchasing a single-family house, you should also consider its advantages and disadvantages

Pros Of Single-Family Homes

Here are some advantages to single-family homes:

• Plenty of space: Single-family homes come in all shapes, sizes and square footage. They’re typically a good choice for prospective buyers who need more space, which may mean a bigger kitchen, more bedrooms or a basement for storage.
• Privacy: Because you and your neighbors aren’t living side by side with shared walls, there’s less chance of them overhearing. If your neighbors are noisy, you’ll hear them less because of the distance between you.
• Freedom to build or modify: Unlike homeowners who have less say over exterior home modifications or can’t make significant changes to their property due to regulations, landmark designation, etc., single-family homeowners have much more freedom over what their home looks like inside and out. If you prioritize personalization, consider buying a fixer-upper home and unleash your creative home design ideas.
• Few rules: Single-family homes associated with a homeowners association (HOA) may limit what homeowners can and can’t do to the exterior of their properties, but HOA rules are typically less restrictive than condo association rules.

Cons Of Single-Family Homes

Here are some disadvantages to single-family homes:

• High purchase price: Single-family homes typically have bigger price tags than other dwelling types in similar areas, which may make them too expensive for first-time home buyers with less buying power. As cash-strapped buyers consider how much house they can afford, they may decide a condo would be more affordable.
• High down payment and closing costs: A higher purchase price naturally translates to more cash at the closing table. If you don’t have enough money saved for a down payment and closing costs, it may be more challenging to secure a mortgage to purchase the property.
• Significant financial responsibility: Single-family homes are more expensive upfront and tend to cost more the longer you live in them. When the home requires a repair, which can happen more often as the home ages, 100% of that cost comes out of your pocket.
• Solely responsible for maintenance: In addition to being financially on the hook for maintenance and repairs, you’re the only one responsible for making sure the property doesn’t fall into disrepair.

Single-family homes typically offer more privacy, space and greater flexibility than other types of housing – but the perks come with a higher price tag. To ensure you can afford this type of property, consider getting a mortgage preapproval. With initial approval, you’ll know whether there’s a single-family home in your area within your budget or if it’s time to explore alternative housing.

Alternatives To Single-Family Homes

If you’re not sure whether a single-family home is for you, consider other types of homes that may be a better fit.

• Multifamily homes: A multifamily home is a residential property with multiple individual housing units. The units can be built on top of each other or side by side. These types of properties are suited for buyers looking for an investment. Investors can either live in one of the units and rent out the others or rent all the units in the building.
• Condominiums: Condos can look similar to multifamily homes, with many individual units in a larger building. The difference is that each unit has an individual owner while all condo residents jointly own the condo’s common areas. Condos are often a good choice for buyers who prioritize less maintenance or want a slightly more affordable entry into homeownership.
• Townhouses: Think of a townhouse as a hybrid condo and single-family home. Townhouse owners own the interior and exterior of their home and, like a single-family home, the land it sits on. Like condos, townhouses often belong to a homeowners association, and you’ll typically find these homes in communities with shared amenities, such as pools or tennis courts.
• Modular homes: Modular homes are prefabricated, built in a factory and transported in modules that are assembled on-site. Modular homes can be more affordable than traditional home types and are customizable.
• Apartments: Most people rent rather than own apartments. If you own your apartment unit, it’s technically considered a condo. You own the interior of your unit and share responsibility for the building’s common areas with other apartment owners.

Is A Single-Family Home Right For You?

Single-family homes generally offer more space, freedom and privacy than other types of homes. However, it can be difficult to decide what kind of home is just right for you. Read on to see if a single-family home works best for your situation.

Evaluate Your Lifestyle Needs And Long-Term Goals

Consider not only what you want in a house, but also what you might want to do with the space you have. A single-family home allows more privacy and freedom than some other types of homes, so if you think you might want to eventually update the exterior or build additions, this kind of home might be best for you. If you anticipate future children, want a dog, or love gardening, a single-family home might also be a great choice. These houses are generally larger and more likely to offer yards than townhomes or condominiums.

Determine Financial Readiness

Before you begin house-hunting, get preapproved to have a better understanding of how much you can afford. Being financially prepared to buy a house is more than just having the money on-hand for the initial costs. You will need to consider maintenance and unexpected costs, as well as moving costs, so be sure you have a good emergency fund and stable income before committing.

Get Approved For A Single-Family House

If you’re interested in purchasing a single-family home, consider starting the approval process before you start shopping around. Getting preapproved will give you an idea of how much a lender will let you borrow, so you’ll know your price range before you look at homes. When you apply with Rocket Mortgage®, you can upgrade your initial approval to a Verified Approval¹ by providing additional documentation. Initial loan approval signals to sellers that you're a serious buyer ready to make a serious offer.

Types of Mortgages

There are many types of home loans available to buyers, each with its own pros and cons, allowing individuals to choose what best suits their financial situation.

Conforming loans cover conventional mortgages, fixed-rate mortgages and adjustable-rate mortgages (ARMs). Conventional loans are not government-backed but follow basic income and down-payment requirements set by Fannie Mae and Freddie Mac. The overall costs might be lower for conventional loans, but you will have to pay private mortgage insurance if your down payment is less than 20%. Fixed-rate mortgages are exactly what they sound like: your monthly principal and interest rates won’t change, but the introductory rates will likely be higher than those of adjustable-rate mortgages. ARMs have interest rates that fluctuate based on the market; rates are often initially low, but they can be unpredictable if the market changes.

Noncomforming loans include various government loans and jumbo loans. There are a number of government-backed loans available, such as Federal Housing Administration (FHA) loans, VA loans and U.S. Department of Agriculture (USDA) loans. The qualification requirements and benefits of each will vary. For example, FHA loans allow one to purchase a house with a credit score of 580 or even lower. Meanwhile, VA loans are offered to those who meet service requirements and enable qualifying candidates to buy a home with no down payment. USDA loans are not offered by Rocket Mortgage at this time.

Finally, a jumbo loan is one that exceeds conforming loan limits. For most of the country, this is $806,500 in 2025.

Preapproval Process

The mortgage preapproval process provides home buyers, especially first-time buyers, with a clearer understanding of how much they can borrow, which helps them avoid looking at homes outside their budget.  A preapproval is not the same as a prequalification, which does not include a credit pull and is less accurate.

The preapproval process is in-depth. Be prepared to provide proof of income and assets, recent tax returns and W-2 statements, employment history, identification, and a hard credit pull. You will receive a loan estimate and a preapproval letter to show to real estate agents. Keep in mind that preapprovals have an expiration date and often only last for 60 days, so you might need to get a second one if your house search takes several months.

Closing Costs And Fees

Higher purchase prices for single-family homes typically result in greater closing costs, making them more expensive overall compared to other dwelling types. As closing costs typically run 3% – 6% of the loan amount, this is largely in part because the cost of the home is higher, These costs might include things such as an application fee, a home appraisal, attorney fees, escrow funds, property taxes, various kinds of insurance and other fees.

The Bottom Line: Single-Family Homes Can Provide Privacy And Freedom

As you consider whether a single-family home is right for you, think about the pros and cons of all different home options and how each type fits into your home buying budget. If a single-family house is the right fit, work with a real estate agent who knows the market you’re interested in to find an affordable new home.

Ready to begin the process? Get started today. 

¹ Participation in the Verified Approval program is based on an underwriter’s comprehensive analysis of your credit, income, employment status, debt, property, insurance and appraisal as well as a satisfactory title report/search. If new information materially changes the underwriting decision resulting in a denial of your credit request, if the loan fails to close for a reason outside of Rocket Mortgage’s control, or if you no longer want to proceed with the loan, your participation in the program will be discontinued. If your eligibility in the program does not change and your mortgage loan does not close, you will receive $1,000. This offer does not apply to new purchase loans submitted to Rocket Mortgage through a mortgage broker. This offer is not valid for self-employed clients. Rocket Mortgage reserves the right to cancel this offer at any time. Acceptance of this offer constitutes the acceptance of these terms and conditions, which are subject to change at the sole discretion of Rocket Mortgage. Additional conditions or exclusions may apply.