Thinking about a condo or a townhome in Southwest Portland or Gresham, but not sure which fits your life and budget? You are not alone. Each option carries different ownership rights, costs, and financing rules that can shape your experience and long-term value. This guide breaks down what you actually own, what you will pay, how lenders view each property type, and the key local due diligence steps to protect your purchase. Let’s dive in.
Quick definitions that matter
A condo is ownership of an individual unit plus a shared interest in the common areas, like the roof, exterior, and grounds. A townhome is often a multi-level attached home. Many townhomes in the Portland area are fee-simple, which means you own the building and the land beneath it. Some townhomes are legally condos, so do not rely on the listing label alone.
In short: the legal setup controls your rights and responsibilities. Confirm by reviewing the title, recorded plat, and association documents during escrow.
Ownership and control: what you own
- Condo: You own the interior of your unit and share the rest with the association. Rules and bylaws govern how the community runs and what is covered.
- Fee-simple townhome: You typically own the land and structure. You may still have an HOA for shared areas or exterior standards, but you usually control more of your property.
This distinction affects your insurance, property taxes, and maintenance. It can also influence your resale appeal and financing options.
Costs to plan for
Purchase price and resale basics
Prices vary by neighborhood, size, and condition. Fee-simple townhomes often list higher than similarly sized condos because they include land and more private control. That said, location, floor plans, parking, and the health of the HOA can outweigh property type.
HOA dues and what they cover
- Condos typically include exterior maintenance, roof, landscaping, master insurance, and sometimes elevators or amenities. Dues can be higher due to shared systems.
- Townhome HOAs can be lower if owners handle their own exteriors, or higher if the HOA maintains roofs, siding, driveways, and grounds.
Always review the HOA budget, reserve study, income and expense statements, and assessment history. Those documents reveal the true cost of ownership.
Special assessments and reserves
Because condos share major systems, they historically see more special assessments. A recent, well-supported reserve study is a positive sign. If contributions are below recommendations, plan for potential assessments.
Insurance and taxes
- Condo owners usually carry an HO-6 policy for the interior and personal property, while the association’s master policy covers the building and common elements. Confirm if the master policy is all-in or bare-walls.
- Fee-simple townhome owners typically carry a full homeowners policy because they own the structure and land.
- Property taxes can be higher with fee-simple townhomes since land value is included. Actual assessments come from county records and recent sales.
Financing and approvals: what lenders look for
Condo project underwriting
Lenders scrutinize condo projects for owner-occupancy rates, commercial space ratios, litigation, and the association’s financial health. Stricter rules can affect your loan type, down payment, and interest rate options.
FHA and VA considerations
Many condo projects need project approval to qualify for FHA or VA loans. Fee-simple townhomes often qualify more easily because they resemble single-family homes to lenders. If you plan to use FHA or VA financing, confirm a condo’s approval status early.
Title and easements basics
- Condos: Review the recorded declaration, bylaws, and the association’s financials. Note any liens or litigation.
- Townhomes: Confirm lot lines on the plat and look for party wall agreements, maintenance obligations, shared driveways, and utility easements.
Maintenance and Portland realities
Who handles repairs
- Condo: The association usually handles the roof, exterior, and common systems. You maintain the interior.
- Townhome: You are often responsible for the whole structure and any yard unless the CC&Rs say otherwise. Read them closely.
Southwest hillsides and water
The Portland climate is wet, and Southwest Portland has many hillside sites. Drainage, retaining walls, building envelope, siding, and decks deserve careful attention. For older low-rise condos, pay close attention to windows, siding, and any evidence of water intrusion.
Seismic notes
The region has seismic risk. Ask whether any structural inspections or seismic retrofits have been completed and how the association plans to fund future work.
Neighborhood context: Southwest Portland and Gresham
Where each is common
In Southwest Portland, you will find low-rise condos and attached homes in places like Hillsdale, Multnomah Village, West Portland Park, and the Southwest Hills, especially near transit and commercial hubs. In Gresham, clusters of condos and townhomes often appear near downtown, along bus routes, and near the MAX Blue Line.
Transit and daily life
If you value lower maintenance and proximity to transit, shops, and parks, condos near major routes can be appealing. If you want more space and private outdoor areas while staying near amenities, a fee-simple townhome often fits the bill.
Lifestyle fit
- Condos often attract buyers who want minimal exterior upkeep and access to amenities.
- Townhomes draw buyers who want more control over their property, more storage, or a small yard.
Due diligence checklists
For condo buyers
- CC&Rs, bylaws, rules, and all amendments.
- HOA budget, reserve study, balance sheet, income and expense statements, past audits, and meeting minutes for the last 12 to 24 months.
- Master insurance policy details and coverage type.
- Assessment history and any planned or pending assessments.
- Project litigation status.
- Owner-occupancy and rental percentages.
- FHA or VA project approval status if needed.
- Building condition items: envelope, roofing, windows, decks, and mechanical systems.
For townhome buyers
- Title report and plat map to confirm fee-simple ownership or condo regime.
- CC&Rs if an HOA exists, including maintenance, parking, and architectural rules.
- Inspection focus: roof, flashing, exterior siding, drainage, and grading.
- Party wall agreements and any shared maintenance obligations.
- Easements, shared driveways, and utility access.
For sellers of condos or townhomes
- Gather HOA documents early, including resale certificates or project summaries.
- Prepare property condition disclosures and any information on assessments or planned work.
- Disclose known building issues, litigation, or special assessments for condos.
- Complete small repairs that can impact appraisals, like addressing water stains or servicing HVAC.
HOA governance red flags
- Low reserves compared with the reserve study’s recommendations.
- Recent large special assessments or a pattern of frequent assessments.
- High owner delinquency on dues.
- Pending litigation against the association or developer.
- Restrictive policies that could affect marketability, like rental caps or bans.
- Deferred maintenance or large capital projects without clear funding plans.
Which is right for you
Choose a condo if you want simplified exterior maintenance, potential amenities, and a lock-and-leave lifestyle near transit and services. Choose a fee-simple townhome if you want more control, land ownership, and private outdoor space, and you are comfortable handling or funding exterior upkeep.
If you are financing with FHA or VA, verify condo approvals early or lean toward a fee-simple townhome for a smoother loan path. If you are fee-sensitive, compare HOA dues and reserve health across several communities to understand true monthly costs.
Work with a local guide
A smart choice balances lifestyle, ongoing costs, and resale. If you want help weighing a condo’s low-maintenance appeal against a townhome’s control and space, local context matters. Portland Modern blends decades of Southwest Portland and Gresham market experience with transparent pricing and design-forward marketing. Sellers appreciate a clear 2 percent listing fee and premium presentation. Buyers and investors value steady process management and lifecycle support, including property management when needed.
Curious which path fits you best or what your home might be worth in today’s market? Reach out to Lance Marrs for candid guidance tailored to your goals.
FAQs
What is the core legal difference between condos and townhomes in Multnomah County?
- Condos provide ownership of the unit plus shared common areas, while many townhomes are fee-simple, meaning you own the land and structure subject to any CC&Rs.
How do HOA dues typically compare between condos and townhomes?
- Condo dues often run higher because they cover exterior systems and amenities, while townhome dues vary based on whether the HOA maintains roofs, siding, and grounds.
Will I need different insurance for a condo versus a townhome?
- Condo owners usually need an HO-6 policy for interior coverage, while fee-simple townhome owners typically carry a full HO-3 or HO-5 homeowners policy.
Do condos face more special assessments than townhomes?
- Condos have historically seen more assessments due to shared major systems; always review the reserve study and assessment history before you buy.
What should I verify for financing a condo in Southwest Portland or Gresham?
- Check project underwriting items like owner-occupancy, reserves, litigation, and FHA or VA approval if you plan to use those loan programs.
What local building issues deserve extra attention in Southwest Portland?
- Focus on water management and building envelope health, especially on hillside sites, and ask about any seismic inspections or retrofit plans.
