Wondering whether a condo or a townhome fits your Plano life best? You are not alone. You want the right mix of low maintenance, smart costs, and a location that works for work, play, and everything in between. This guide breaks down ownership, costs, financing, HOA realities, and where each option shines in Plano, plus a step-by-step checklist to help you shortlist with confidence. Let’s dive in.
Condo vs. townhome basics in Plano
What you own
- Condo: You typically own the interior of your unit and a shared interest in common areas like hallways, roofs, and grounds. The association manages those shared elements and enforces rules.
- Townhome: You usually own the structure and the land under it as fee-simple property. Many townhomes also sit within an HOA that maintains shared amenities and sometimes parts of the exterior. Always verify the CC&Rs for exact responsibilities.
How they live
- Layout and privacy: Condos are often in low- or mid-rise buildings with neighbors above or below. Townhomes are multi-level with fewer shared walls and a more single-family feel.
- Entrance and parking: Townhomes usually have a private ground-level entrance and a garage. Condos often use shared corridors, elevators, and assigned or shared parking.
- Outdoor space: Townhomes more often include a small yard or patio. Condos may offer balconies and shared outdoor areas.
Costs and financing: what to compare
Purchase price and resale
In suburban Texas settings like Plano, condos can list at lower prices than similarly sized townhomes. Resale demand often favors townhomes because they appeal to a broader buyer pool who want multi-level living, a garage, and a small yard. For condos, the health of the association and building condition play an outsized role in value and buyer interest.
Monthly costs to model
Build a side-by-side for each property you like. Include:
- Mortgage principal and interest
- Property taxes
- HOA or condo dues and what they cover
- Homeowner’s insurance
- Utilities and any water or trash included in the dues
- A maintenance or reserve allowance for repairs and potential assessments
Dues vary widely across Plano. Smaller and older condo associations might charge less, while newer amenity-rich communities can be higher. Confirm current dues, exactly what they include, and whether any special assessments are planned.
Taxes and insurance differences
- Property taxes: Use the Collin County Appraisal District for parcel data and estimates, or ask your agent for a property-specific scenario.
- Insurance: Condo owners typically carry an HO-6 policy for interior finishes and personal property, while the association’s master policy covers common areas and often the building shell. Townhome owners often need HO-3 or HO-5 coverage if they own the exterior and roof. For both, verify the master policy type and deductibles so you understand your exposure. You can review consumer guidance through the Texas Department of Insurance.
Financing and approvals
Both condos and townhomes can qualify for conventional loans, but condos can trigger extra project-level checks. Ask your lender early if you are eyeing a specific condo building.
- FHA and VA: Some lenders require condo projects to meet agency rules. Check FHA condo guidance through HUD’s condominium resources and VA program information through VA condominium approval guidance.
- Conventional: Fannie Mae and Freddie Mac review condo project stability, reserves, and owner-occupancy. See Fannie Mae project eligibility for common checks.
- Key items to ask your lender and the HOA: owner-occupancy ratio, rental caps, investor concentration, delinquency rates, commercial space percentage, any litigation, and reserve funding.
HOA, maintenance, and risk
What HOAs usually cover
- Condo associations often maintain the building structure, roof, exterior, common mechanical systems, landscaping, amenities, parking lots, and carry a master insurance policy.
- Townhome HOAs vary. Some cover only common landscaping and amenities. Others cover parts of the exterior. Always verify CC&Rs and the budget to see who maintains what.
Documents to review before you offer
Request these items to understand costs and risk:
- Current budget and recent financial statements
- Reserve study or reserves documentation and history of special assessments
- Board meeting minutes for the last 6 to 12 months
- Master insurance declarations and deductibles
- Any pending lawsuits or claims
- Rental rules, pet policies, and exterior change rules
- Age and condition notes for key systems like roofs and parking decks
- Management approach: professional management or volunteer-run
Red flags to watch
- Low or no reserves in an aging community
- Multiple special assessments in recent years
- High delinquency on dues
- Ongoing litigation
- Rental percentages that could affect financing eligibility
- Vague parking or guest rules that can create conflicts
Plano neighborhood fit and lifestyle
Where you will find each option
- Downtown Plano and near Historic Downtown: Condos and lofts with walkability to restaurants, entertainment, and transit. Choices range from converted buildings to newer mixed-use.
- Legacy West, The Shops at Legacy, and the West Plano corridor: Newer townhome communities and attached products near corporate campuses. Expect amenities, garage parking, and a modern feel.
- Major corridors like Preston Road, Dallas North Tollway, and Spring Creek Parkway: A mix of garden-style condos, low-rise buildings, and townhouse clusters that work well for commuters.
- Infill pockets: Townhome infill in central areas that trade big yards for lower maintenance and a convenient location.
Commute and daily routines
Many Plano residents commute to Dallas, Frisco, Irving, or local corporate campuses. If you drive, a townhome with a private garage can simplify daily logistics. If you want to limit driving, a condo near Downtown Plano or Legacy West can maximize walkability to dining and entertainment, with convenient connections to transit corridors.
Schools and boundaries
If schools are on your list, check exact boundaries and assignments by address through Plano ISD’s boundary resources. Townhome communities in residential neighborhoods may align with nearby single-family areas. Condos near downtown can land in different zones. Always verify by property.
Who each option fits in Plano
- You want walkability and low exterior upkeep: A condo near Downtown Plano or Legacy West may fit well. You trade private yard space for convenience and amenities.
- You want a garage and a bit of private outdoor space: A fee-simple townhome in West Plano or an infill townhome near major corridors can balance space with manageable maintenance.
- You prioritize broad resale appeal: In suburban markets like Plano, townhomes often attract a wider buyer pool. The right condo can resell well, but association health and building condition are crucial.
- You are exploring rentals or future investment: Review rental policies carefully. Some Plano associations limit rental percentages or set minimum lease terms that affect cash flow and financing.
A step-by-step checklist for Plano buyers
1. Define your top priorities
Rank your must-haves in order:
- Commute time and access to tollways or transit
- Budget and total monthly cost
- Living space and bedroom count
- Private garage or assigned parking
- Yard or outdoor area
- School boundaries
- Walkability and amenities
- Your maintenance tolerance
2. Narrow neighborhoods and product types
- Choose areas that match your commute and lifestyle like Downtown Plano, Legacy West, or West Plano corridors.
- Within each area, compare typical options: condo buildings, townhome clusters, or fee-simple townhomes.
3. Verify hard costs early
- Get current HOA or condo dues and a list of what they include.
- Ask your lender to check project eligibility if you are considering condos, especially for FHA or VA.
- Estimate taxes for a specific property using the Collin County Appraisal District.
4. Review HOA documents before you write an offer
Ask the seller or listing agent for:
- CC&Rs, bylaws, and community rules
- Current budget, financials, and reserve study
- Master insurance declarations
- Board meeting minutes for the last 6 to 12 months
- Any special assessments or lawsuits
- Rental policy and current owner-occupancy
5. Plan inspections around the right risks
- Condos: Focus on building envelope, roof condition, parking deck, elevator history, common HVAC systems, and water intrusion.
- Townhomes: Focus on roof and siding, drainage around the foundation, separation and fireproofing between units, and the condition of private yards and garages.
6. Clarify ongoing rules and lifestyle fit
- Are water, sewer, or cable included in dues?
- Any expected special assessments in the next 1 to 5 years?
- Is the association professionally managed and adequately staffed?
- Owner-occupancy rate and rental cap?
- Guest and overnight parking rules?
- Pet rules and any size or breed limits?
7. Build a true monthly comparison
Create an apples-to-apples view for each finalist:
- Mortgage estimate based on your pre-approval
- Property tax estimate divided by 12
- HOA or condo dues
- Homeowner’s insurance based on coverage type
- Utilities and a small maintenance or special assessment reserve
8. Use local resources to verify
- Collin County Appraisal District for parcel and tax data
- City of Plano maps for planning, zoning, and floodplain context
- Plano ISD boundary resources for exact school assignments
- HUD condominium resources and Fannie Mae project eligibility for condo lending rules
- Texas Department of Insurance for insurance guidance
- Texas Real Estate Commission consumer resources
Make the choice with confidence
The best fit in Plano comes down to your lifestyle priorities and the strength of the specific community you choose. If you value walkability and want minimal exterior obligations, a well-run condo near Downtown Plano or Legacy West can be a great match. If you prefer a private entrance, garage, and a more single-family feel, a townhome may deliver the space and resale flexibility you want. Use the checklist, verify the HOA’s financial health, and pressure-test financing early to avoid surprises.
When you are ready to tour options, compare true monthly costs, and review HOA documents, we are here to help you move with clarity. Reach out to the Katie Chu Group to map your Plano shortlist and timing. We will keep the process efficient and focused on your goals.
FAQs
What is the main ownership difference between a condo and a townhome in Plano?
- A condo owner typically holds the interior of the unit plus a share of common areas, while a townhome owner often holds fee-simple title to the structure and land under it, subject to HOA rules.
How do HOA dues for Plano condos and townhomes typically differ?
- Condo dues often cover exterior, roof, common utilities, and amenities, while townhome dues may focus on shared landscaping and amenities, with exterior responsibilities varying by development.
What financing issues should I check first if I want a condo in Plano?
- Ask your lender about project eligibility and review FHA, VA, and conventional requirements like reserves, owner-occupancy, rental caps, and any litigation that could limit loan options.
How can I estimate property taxes for a specific Plano address?
- Use the Collin County Appraisal District to review parcel data and tax estimates, then refine with your lender or agent for your loan scenario.
Which Plano areas are best for walkable condo living?
- Downtown Plano and the Legacy West area often offer the highest walkability to dining and entertainment, with a mix of newer and converted buildings.
What inspection items are most important for townhomes?
- Focus on roof and siding condition, drainage around the foundation, separation between units, and the state of private garages and small yards.
How do I compare the true monthly cost between a condo and a townhome?
- Build a side-by-side that includes mortgage, taxes, HOA dues, insurance type, utilities, and a reserve line for maintenance or special assessments.
