Located within Bergen County, New Jersey, Cresskill is a small suburban community with a population of 8,700. Dense and close knitted, Cresskill is known as one of the best places to live in the state of New York. With great public schools and a lot of parks, it is no wonder why so many families choose to live here. If you are also considering Cresskill as your new home, you may be debating between multi and single-family homes. Well, wonder no more as we aim to end the debate of single vs multi-family homes in Cresskill right here.
What is a Single-Family Home?
Single-family homes are freestanding residential units that are designed for only one family. These types of homes require the property to have an individually owned area or something that separates it home other properties. This means that the title of the property must denote that the house has a specific lot of land attached to it.
There are various types of single-family homes including townhouses, twin homes, bungalows, and split levels.
What is a Multi-Family Home?
Multi-family homes are residences that consists of more than one residential unit. This means that each residence has multiple separate units, each with its own address, entrance, living facilities, and utilities. Each unit thus controls its own internal environment and has its own utility bill. However, they may have walls, ceilings, and corridors in common.
Such properties would mean living close to your neighbors and sharing facilities such as elevators, staircases, a common lobby, a rooftop, and more. But, as each residential unit is separate, you will still be able to live your life independently.
Types of multi-family homes include apartment complexes, condos, duplexes, assisted living communities, and more.
Key Differences
- Separation of facilities
The most obvious difference between single and multi-family homes is the fact that single-family homes have their own lot and are thus autonomous and do not require you to share any facilities with other people. As stated, multi-family homes will require you to share various facilities and spaces such as the lobby, pool, or elevators. Furthermore, things such as the water tank and furnaces is also shared.
- Financing
Another significant difference between the two types of residences is the financing. Multi-family homes are financed based on the number of units they have. This will determine the type of loan you can apply for.
For lending purposes, a multi-family home with four or fewer units will be financed the same way single-family homes are. This means you will be able to apply for a conventional loan. If there are more than four units, then you will have to apply for a commercial loan instead. Naturally, different mortgages have different terms and conditions so do consult a local lender to guide you through which is best suited for you and which you qualify for.
- Loan Limit
Single-family homes financed with a conforming loan will be subjected to a federal loan limit of $970,800 as of 2022. If you need to loan more, then you will have to resort to a jumbo loan.
Multi-family homes are assessed on a case-by-case basis, with limits ranging between $1 million to $1 billion.
Which is Better?
With that being said, let us come back to the central question: which type of housing should you choose in Cresskill? Truthfully, it comes down to your personal preference and your financial situation. If you like your space and do not fancy sharing amenities and facilities with a bunch of strangers, then single-family properties are for you. However, if you thrive off social contact and enjoy having your neighbors close by, then consider multi-family homes. Consult a credible lender regarding the types of loans you qualify for, and seek out a good local realtor so that you can get a good idea of which neighborhoods are the best for you.
