By Luis Tejada, Greater Boston Real Estate Broker
It is one of the most common questions we hear from buyers in Chelsea, Everett, Revere, East Boston, Lynn and Malden: Should I buy a condo, or stretch for a two-family?
There is no single right answer. But there is a right way to decide: with real numbers. Here is a simple way to run them at today’s rates.
Where rates and prices are now
- Freddie Mac’s average 30-year fixed rate was 7.24% for the week of October 29, 2026.
- The median condo price in Massachusetts was $525,000 in September 2026, according to the Massachusetts Association of REALTORS®.
- Fannie Mae now allows as little as 5% down on owner-occupied 2-, 3- and 4-unit homes. Under the old rules, buyers usually needed 15% to 25% down for these homes.
That last change is a big deal. It means the down payment for a two-family can now be much closer to a condo than it used to be. You still need to qualify for the larger loan.
Example: the monthly math
These are examples only, not quotes or local prices. Your numbers will be different.
Condo at $525,000
- 5% down: $26,250
- Loan: $498,750
- Principal and interest at 7.24% (30 years): about $3,399 a month
- Plus: property taxes, condo insurance, and the monthly condo fee
Two-family at $750,000
- 5% down: $37,500
- Loan: $712,500
- Principal and interest at 7.24% (30 years): about $4,856 a month
- Plus: property taxes, building insurance, and repairs you pay yourself
- Minus: the rent from the other unit
Say the other unit rents for $2,400 a month. (That is just an example. Real rents depend on the unit, the street and the market.) Your principal and interest after rent would be about $2,456 a month. That is less than the condo payment, before taxes, insurance and fees.
But the rent is not all profit. Set money aside for:
- Vacancy. Some months may have no tenant.
- Repairs. Roof, heating, porches and appliances are now your job. There is no condo association to share the cost.
- Heat and utilities that you may have to provide.
- Reserves. Lenders and smart owners both want cash in the bank after closing.
What a small rate change does
Rates move every week. At 6.24%, one point lower than today’s average, the payment on the condo loan above would be about $3,068. On the two-family loan, it would be about $4,382. The bigger the loan, the more each rate change matters. That is why we always run your numbers at the rate you can actually lock.
The condo: pros and cons
- Pros: Smaller loan. The association handles the roof, outside and common areas. Less work for you. Easier if you travel or work long hours.
- Cons: Monthly fees that can go up. Possible special assessments for big repairs. Rules about pets, rentals and renovations. Your lender will review the association’s finances.
Read our guide on buying a condo in Massachusetts before you make an offer.
The two-family: pros and cons
- Pros: Rent helps pay the mortgage. You control the building. You may have room to grow, or a place for relatives later.
- Cons: Bigger loan. You are a landlord, with real legal duties. Repairs are all yours. Older buildings may need more work.
Being a landlord in Massachusetts has rules you must follow. For example, if the lease says you supply heat, heating season runs from September 15 to June 15, at 68°F by day and 64°F at night. If the home was built before 1978 and a child under 6 lives there, lead paint rules apply. Read our landlord guide and our guide to buying a 2–4 family to live in.
Questions to ask yourself
- How much cash will I have left after closing for repairs and emergencies?
- Am I ready to find tenants, collect rent and handle repairs, or to pay someone to do it?
- How long do I plan to live here?
- Would my budget still work if the unit sat empty for two months?
- What would my monthly payment be at the rate I can lock today, not a rate I hope for?
Ask your lender these three things
- What is the lowest down payment I qualify for on a 2-family versus a condo?
- Can any of the expected rent count toward my income? The rules are specific, so ask early.
- How much in reserves will I need at closing?
Our guide to mortgage options explains conventional, FHA and other loans in plain words.
The bottom line
A condo is usually simpler. A two-family can be stronger over time, but it asks more of you. With 5% down now possible on owner-occupied multi-families, more buyers can consider both. The best choice is the one that still works on paper in a bad month, not just a good one. We are happy to run both scenarios with you, side by side.
Sources: Freddie Mac Primary Mortgage Market Survey (Oct. 29, 2026); Massachusetts Association of REALTORS® September 2026 data, via Boston Agent Magazine (Oct. 14, 2026); The Mortgage Reports, Fannie Mae’s 5% down multifamily loan (Jan. 2, 2026); Mass.gov, Property Transfer Lead Paint Notification; Mass.gov, Guidance on heating season and minimum temperatures. Payment examples are our own math for principal and interest only.
Have a question? Call or text Luis at (617) 982-0194, or sign up for free home alerts.
