From Dupont to Capitol Hill, many DC apartment buildings look similar at first glance. But the paperwork behind them is very different. If you are deciding between a condo and a co-op, those differences can shape your monthly costs, financing, approval timeline, and resale strategy. This guide breaks down what matters in DC so you can buy with confidence. Let’s dive in.
Condo vs co-op at a glance
A condo is real property you own. You receive a deed to your unit plus a share of the common areas through the condominium association.
A co-op is ownership in a corporation. You buy shares in the building’s corporation and receive a proprietary lease to occupy a specific unit. You do not receive a deed to real property.
Ownership and taxes in DC
- Condos: You hold title to your unit and a percentage of common elements. You pay your own DC property tax bill and can purchase title insurance on the unit.
- Co-ops: The corporation owns the building. You hold shares and a proprietary lease. The corporation typically pays the real estate taxes, which are passed through to you in the monthly maintenance charge.
Transfers also differ. Condo sales transfer by deed. Co-op sales transfer by assigning shares and updating corporate records, plus related paperwork required by the co-op.
Monthly costs and what they cover
- Condos: HOA dues usually cover building maintenance of common areas, management, reserves, and master insurance for the building’s common elements. You pay property taxes and most unit-specific costs separately.
- Co-ops: Monthly maintenance often covers more. It can include the building’s real estate taxes, utilities, staff, building insurance, reserves, and sometimes an underlying building mortgage. The number may look higher on paper, but it often includes costs you would pay separately in a condo.
Both structures can levy special assessments for capital projects. A healthy reserve fund is a positive sign. Low reserves or repeated special assessments are red flags to investigate.
Financing in DC: what to expect
- Condos: Conventional mortgages are common. FHA and VA loans may be available if the specific condo project meets program requirements.
- Co-ops: Financing is available but fewer lenders offer co-op share loans. Lenders and co-op boards often require stronger financials. Some co-ops limit the percentage you can finance.
If you plan to use FHA or VA financing, verify whether the building qualifies. If you are early in your search, speak with a lender who regularly finances DC condos and co-ops so you understand down payment options and timelines.
Board approvals and timeline
- Condos: The association usually cannot unreasonably block a sale. You will request resale documents, an estoppel, and any required certificates. Closing timelines are often driven by lender and title schedules.
- Co-ops: Expect a detailed application, full financial disclosure, references, and possibly an interview. The board can approve or deny share transfers based on its bylaws. Approval can add several weeks and may include conditions like higher down payments or escrowed funds.
Some DC co-ops also have flip taxes or transfer fees. Make sure these are disclosed and budgeted before you write an offer.
Resale and rental considerations
Condos typically draw a larger buyer pool, including investors. Co-ops tend to attract owner-occupants who value building governance and community stability. Because many co-ops restrict rentals and fewer lenders finance them, resale liquidity can be different than for condos.
Neighborhood patterns also vary:
- Georgetown: Many older, boutique co-ops and small condo buildings.
- Dupont Circle and Kalorama: A mix of prewar co-ops and condo conversions in walkable settings.
- Capitol Hill and Navy Yard: More rowhouses in Capitol Hill, with newer condominium developments clustered around Navy Yard and the riverfront.
Due diligence checklist
Ask for these items before you commit:
- Current budget, last 2–3 years of financial statements, and any reserve study.
- Board meeting minutes from the past 12–24 months.
- Master insurance details and what you must insure personally.
- Owner-occupancy ratio and number of rentals.
- Any pending or recent special assessments and capital projects.
- Any pending or threatened litigation.
Co-op specific:
- Proprietary lease, house rules, share certificate details, and transfer procedures.
- Board approval criteria and any residency or financing limits.
- Information on any underlying building mortgage.
Condo specific:
- Condominium declaration, bylaws, and master deed.
- Resale certificate or estoppel letter showing fees, arrears, and compliance.
Red flags to watch for
- Low reserves relative to the building’s age and condition.
- Repeated or large special assessments without a long-term plan.
- More than a modest share of owners behind on dues.
- Co-op boards known for unusually high rejection rates or onerous procedures.
- Condo buildings with a very high investor share if you prefer a primarily owner-occupied community.
Which option fits your goals
Choose a condo if you want broader financing options, a simpler transfer process, and more flexibility for rentals. This can help if you plan to move again within a few years or want a larger buyer pool at resale.
Consider a co-op if you value closer community governance and do not plan to rent. You may appreciate the stability of a building where the board actively reviews transfers and financing levels. Just budget extra time for approval and be ready for fuller financial disclosure.
If you need FHA or VA financing, confirm eligibility early. If a quick closing is a priority, condos are often easier. If the monthly number is your focus, compare apples to apples by including taxes and building-level costs that co-op maintenance often covers.
How to get started in DC
Pre-offer:
- Get pre-approved with a lender experienced in DC condos and co-ops.
- Request the building’s offering package and key governing documents.
- Review financials, reserves, minutes, and any litigation disclosures.
Offer and contract:
- Condos: Include time to review the resale package and any estoppel documents.
- Co-ops: Build extra time for the application, board interview, and approval. Confirm deadlines and required documentation early.
Before closing:
- Confirm transfer taxes, flip taxes, or association transfer fees and who pays them.
- Confirm your insurance needs. Condo owners often carry HO-6 policies. Co-op shareholders should confirm what the master policy covers and insure accordingly.
- Work with a DC real estate attorney who knows condo and co-op closings.
After closing:
- Condos: Ensure your deed is recorded and set up your property tax billing account.
- Co-ops: Confirm the share transfer in the corporate ledger and receive your stock certificate and proprietary lease.
Ready to compare specific buildings in Dupont, Kalorama, Georgetown, or Navy Yard and map a clear plan from financing to board approval and closing? Reach out to Jennifer Fang Homes for step-by-step guidance tailored to your goals.
FAQs
Which is easier to finance in DC: a condo or a co-op?
- Condos generally offer broader financing options, including conventional and sometimes FHA or VA for eligible projects. Co-ops require specialized share loans and often stricter underwriting.
How do monthly costs compare for DC condos and co-ops?
- Co-op maintenance often looks higher because it usually includes real estate taxes and more building expenses. Condo HOA dues may be lower, but you pay property taxes and some costs separately.
What should I expect from a DC co-op board approval?
- Expect a detailed application, full financial disclosure, references, and possibly an interview. Boards can set approval standards and may take several weeks to decide.
Are rentals allowed in DC co-ops and condos?
- Many co-ops limit or prohibit rentals, which affects investors. Condos are generally more flexible, but always check the building’s rental policy before you buy.
Will a condo or co-op sell faster in DC?
- Condos often sell more quickly due to a larger buyer pool and wider financing options. Co-op resale pace depends on board policies, building finances, and market demand.
