Assume an $500,000 purchase price with 20% down. The loan amount would be $400,000.
For the sake of this example, assume a 4.375% interest rate (for a 30-year fixed loan), your monthly principal interest taxes and insurance for the single family home would be about $2,634
Now add another $200 to the monthly payment for HOA dues and your total payment increases to $2,834 for a townhouse.
For this example say you have about $800 per month in debt (car payment, credit cards, etc).
For a single family residence your total monthly obligation would be $3,434, while for a townhouse your total monthly obligation would be $3,634
In order to qualify for a conventional conforming loan, your debt to income ratio needs to be below 45%. To purchase the single family residence you would need to make at least $7,632 per month. And to purchase the townhouse you would need to make at least $8,076 per month.
Please keep mind these are rough numbers. If you are not already working with a lender, I would be happy to run your specific scenario for you. I work with a lot of buyers in the San Ramon & Dublin area who are trying to make the determination between purchasing a single family residence and a condo/townhouse.
Mortgage Loan Advisor
NMLS# 1076586 BRE# 01936908
RPM MORTGAGE, INC. • ALAMO
3240 Stone Valley Rd. West, Alamo, CA 94507
I would say it really depends on your needs and your lifestyle. I have been a resident in San Ramon for over ten years. If you feel more living space is what you need, then a townhhouse is the way to go. If you don't want to deal with the HOA ( homeowner's association fee), then perhaps a single family residence is what you need. A SFR usually values more than a townhouse, but again it depends how much space you want and need for your current living situation.
Hope this helps! Call or email me if you have any questions, I would be more than happy to assist.
You state that you get more living space with the townhome...the question is whether that is more important to you than predicted value in the future. Go where you will enjoy living the most. That's my advice!