Trying to decide between a condo and a house in Salem, NH? Your choice affects your monthly budget, how you spend weekends, and how winter maintenance gets handled. If you are a first-time buyer or a downsizer, it can be hard to compare apples to apples. This guide breaks down total costs, HOA rules, financing nuances, and maintenance trade-offs so you can make a confident decision. Let’s dive in.
How costs differ in Salem
New Hampshire has no broad-based state income tax or sales tax, so municipalities rely heavily on property taxes. In Salem, your total cost depends on the assessed value, the local tax rate, and whether HOA fees cover items like water, trash, or snow removal. Age and construction type also matter, since winters can increase heating and exterior wear.
Recurring monthly costs
- Mortgage principal and interest
- Property taxes based on Salem’s assessed value for the specific property
- Homeowner’s insurance: HO-3 for single-family, HO-6 for condo unit owners
- HOA fees for condos, which may include exterior maintenance, snow removal, landscaping, a master insurance policy, reserves, and sometimes utilities
- Utilities not included in an HOA, such as electric, gas or oil, water and sewer
- Ongoing maintenance and a personal reserve for repairs
- Parking or amenity fees if applicable
One-time or irregular costs
- Closing costs and any condo transfer or documentation fees
- Capital improvements like a new roof or siding for a house, or building-wide projects for a condo
- Special assessments in a condo if reserves are low or large projects arise
Tip: When you compare options, total everything you will pay each month. Include mortgage, taxes, insurance, HOA, utilities, and a monthly maintenance reserve so you see the full picture.
HOA rules, reserves, and risk
A healthy HOA can provide predictability for exterior costs. A weak HOA can lead to fee spikes or special assessments. Review documents carefully so you know what you are buying.
Documents to request
- Declaration of Condominium and Bylaws
- Current HOA budget, balance sheet, and the latest reserve study or engineer report
- Meeting minutes from the last 12 to 24 months
- Master insurance policy declarations, including coverage limits and what is covered by the association versus the unit owner
- Rules and regulations, including pet policies, rental limits, parking, and renovation rules
- Litigation status, owner occupancy ratios, and dues delinquency rates
Red flags to watch
- Low or declining reserve balances, or no reserve study
- Rising fees without a clear plan or upcoming capital needs
- High delinquency, often above roughly 10 to 15 percent
- Active litigation that could affect costs or resale
Insurance basics for condos
Confirm whether the master policy is walls-out or bare walls. This determines what your HO-6 must cover. Ask how deductibles are handled if there is a building-wide claim, and whether flood coverage is needed based on local maps.
Financing differences for condos
Condo loans can involve extra review. Lenders often evaluate owner occupancy, the association’s financial health, insurance, and any litigation. If the project does not meet guidelines, you may need a different loan plan.
What lenders look for
- Condo project approval for FHA or VA loans when required
- Owner occupancy and investor concentration within acceptable limits
- Budget strength and adequate reserves
- Dues delinquency and any active litigation
Down payment and PMI
- FHA: Minimum down payments apply and FHA typically requires project approval
- Conventional: As low as 3 to 5 percent down for some programs, with PMI below 20 percent equity; stricter reviews for condos
- VA: Eligible buyers may qualify for 0 percent down if the project meets VA rules
- Jumbo: Stricter underwriting that may affect some higher-priced homes or condos
Practical steps with your lender
- Get pre-approved and ask your lender to explain condo review requirements
- Confirm whether the condo project is approved for FHA or VA if you plan to use those loans
- Obtain HOA financials early and share them with your lender
- Keep a backup plan in case a chosen condo does not meet a program’s standards
Maintenance and lifestyle trade-offs
You will either pay with time or with HOA fees and shared decisions. Think about your weekends, your tolerance for surprise repairs, and how much you want to customize your property.
What you handle in a condo
- Lower exterior workload, often including landscaping, snow removal, and exterior repairs
- Interior systems and finishes inside your unit
- Shared decision-making through the HOA, which can limit timing and materials for big projects
What you handle in a house
- Full responsibility for exterior and interior maintenance
- More control over improvements and timelines
- Variable costs, from snow removal to roof and siding replacements
Build your Salem monthly budget
Make a clean comparison between a specific condo and a specific house. Use actual documents when possible.
Monthly cost worksheet
List monthly amounts for each line and sum them:
- Mortgage principal and interest
- Property tax monthly equivalent from the current tax bill
- Insurance monthly equivalent: HO-3 for a house or HO-6 for a condo
- HOA fee if applicable
- Utilities not covered by HOA: electric, gas or oil, water and sewer, trash if separate
- Parking or amenity fees
- Monthly maintenance reserve that you set
- HOA special assessment reserve if the association indicates likely assessments
- Total monthly housing cost
Instructions:
- Pull the actual Salem tax bill, current HOA fee, master insurance summary, and 12 months of utility history if available
- Use a current lender quote for principal and interest
- Start conservative on reserves. A common practice is 1 to 3 percent of home value per year for houses and 0.5 to 1 percent for condos as a personal interior reserve
Reserve planning checklist
- Short-term emergency fund equal to 3 to 6 months of total housing costs
- A schedule for major systems like roof, furnace, water heater, and septic, with an estimated replacement timeline
- Planned improvements and a simple savings plan
- HOA reserve health notes, including balance and upcoming capital projects
What to review before you offer
Do your homework early so there are no surprises during financing or inspection.
- Salem assessor record and the most recent tax bill for the exact property
- HOA budget, reserve study, meeting minutes, and master insurance declarations
- 12-month utility history and clarity on what the HOA fee includes
- Owner occupancy ratio, dues delinquency, and any litigation
- For houses, review well or septic records if applicable, plus permit history for additions
When a condo makes sense
- You value low exterior maintenance and predictable shared services
- You want a lower entry price point and are comfortable with HOA rules
- You prefer bundled snow removal and landscaping, especially in winter
- You are okay with the risk of special assessments if reserves are thin
When a house makes sense
- You want more privacy, yard space, and control over improvements
- You are comfortable managing snow removal and exterior upkeep
- You prefer to set your own maintenance schedule and reserve strategy
- You want to avoid HOA restrictions and shared decision-making
Next steps
If you are torn between a condo and a house in Salem, line up your numbers and documents side by side. Pull the tax bill, HOA financials, and utility history so you can compare total monthly cost and potential reserves. Share HOA documents with your lender early, especially if you are using FHA or VA financing. If you want a second set of eyes on the worksheets or the HOA budget, reach out to our team for a quick review.
Ready to compare options one-on-one and build a clear plan? Connect with Davis McVay for local guidance and a financing-informed approach.
FAQs
Are condos cheaper than houses in Salem, NH?
- Condos can have a lower purchase price, but you should compare total monthly cost by including HOA fees, insurance, taxes, utilities, and a maintenance reserve.
What HOA documents should I review before buying a Salem condo?
- Ask for the Declaration and Bylaws, budget, reserve study, meeting minutes, master insurance declarations, rules, and details on delinquency and litigation.
How do lenders evaluate Salem condo projects for financing?
- Lenders review owner occupancy, reserves, budgets, delinquency, insurance, and any litigation, and FHA or VA may require specific project approval.
What maintenance is typically covered by a condo HOA in Salem?
- Many HOAs handle exterior maintenance, landscaping, snow removal, and a master insurance policy, while you cover interior systems and finishes.
How should I budget for a single-family home in Salem?
- Include mortgage, taxes, insurance, utilities, and a maintenance reserve, and plan for bigger items like roof, siding, and heating system replacements over time.
