Co-Op vs Condo on Capitol Hill

Trying to choose between a co‑op and a condo on Capitol Hill? You’re not alone. Both options can put you close to transit, restaurants, and parks in 98102, but the ownership, financing, rules, and resale experience are very different. In this guide, you’ll learn how each structure works in Washington, what it means for your budget and timeline, and which option might fit your goals in Capitol Hill. Let’s dive in.

What you actually own

Condo ownership in Washington

When you buy a condo, you receive a deed to your individual unit and share ownership of the building’s common elements through the homeowners association. In Washington, condos are created and governed under the Washington condominium statute, RCW 64.34. Your rights and responsibilities are laid out in the declaration, bylaws, CC&Rs, and HOA rules.

Co‑op ownership basics

When you buy in a co‑op, you purchase shares in a corporation that owns the entire building. Your shares give you the right to occupy a specific unit through a proprietary lease or occupancy agreement. You don’t receive a deed to the unit in the same way condo owners do. For a plain‑English overview of how co‑ops work, see this consumer explainer on housing co‑ops.

Governance and rules

Documents and decision‑makers

• Condos rely on a declaration, bylaws, CC&Rs, and HOA rules to manage the building.
• Co‑ops operate under articles of incorporation, corporate bylaws, a proprietary lease, and house rules.

Board approvals and restrictions

Co‑op boards typically have broader discretion to approve or reject prospective purchasers. Board interviews, financial vetting, and reference checks are common. Condos may screen for things like lease rules, but routine buyer approval by the association is less common and usually more limited. For a consumer overview of these differences, Nolo’s guide to co‑ops vs. condos explains typical board powers and restrictions.

Policies on subletting, renovations, pets, and guest stays also tend to be stricter in many co‑ops. If flexibility matters to you, read the building rules closely before you write an offer.

Financing and down payments

Loans and lender options

• Condos: These are familiar to most lenders. Conventional financing is common, and some condo projects may be eligible for FHA or VA loans if the building meets program rules. You can confirm program details through HUD’s resources.
• Co‑ops: Financing is typically a share loan secured by your shares and proprietary lease. Fewer lenders offer this, underwriting can be more detailed, and FHA/VA approvals are less common for co‑ops. Investopedia’s co‑op guide outlines these financing differences.

Down payment expectations

• Condos: Down payments often range from 5 to 20 percent depending on your loan program and the condo’s eligibility with your lender.
• Co‑ops: Many boards expect higher down payments or stronger cash reserves. Lenders that do share loans may also ask for more equity. Be prepared to document assets and liquidity.

Monthly costs and taxes

How the fees are structured

• Condo owners typically pay three separate items each month: your mortgage payment, property taxes, and HOA dues. HOA dues generally cover common area maintenance, a master insurance policy for the building, reserves, and shared utilities.
• Co‑op shareholders usually pay one monthly maintenance fee. That fee often includes the building’s underlying mortgage (if any), property taxes, building insurance, and many utilities. The number may look higher, but it often bundles costs that condo owners pay separately.

Reserves and special assessments

Both condos and co‑ops should maintain reserves for future repairs. If reserves fall short, either type of building can levy a special assessment. Always review the budget, reserve study, and recent meeting minutes before you commit.

Resale and timeline in 98102

Liquidity and buyer pool

Condos generally attract a larger buyer pool because financing is more widely available and the approval process is simpler. Co‑ops often have a smaller buyer pool due to board approvals and fewer lender options. That can translate to a longer resale timeline and, in some cases, lower prices compared to similar condos. Valuation often relies on comparable co‑op sales, which can be limited in markets where co‑ops are less common.

Board approval affects timing

Most co‑op resales require board interviews and formal approval, which can add days or weeks to closing and introduces the possibility of a declined application. Condo resales usually move faster because association approval of buyers is less common.

Local context: Capitol Hill

Capitol Hill is one of Seattle’s most central, transit‑connected urban neighborhoods, with frequent bus service, light rail access, and dense retail and restaurant corridors. The City of Seattle’s neighborhood overview offers maps and context for the area.

In 98102, you’ll see a mix of older walk‑ups, mid‑century and newer condo buildings, and a small number of co‑ops. Co‑ops are relatively uncommon in Seattle compared to condos and rental apartments, so expect fewer co‑op choices at any given time. If you need more inventory and flexible financing, condos will typically offer more options.

Due diligence checklist for buyers

Before you make an offer, ask for the building’s full document set and review it carefully. Here’s what to request:

For both condos and co‑ops

• Current year budget and latest income statement
• Reserve study and current reserve balances
• Minutes from recent board meetings for the last 6 to 12 months
• Details on any pending litigation and insurance claim history
• History of special assessments and the reasons for them
• Owner‑occupancy versus investor percentages

Extra for co‑ops

• Proprietary lease, corporate bylaws, house rules, and sample board application
• Written board approval process and typical timeline
• Details on any corporate debt tied to the building and how it is serviced

Extra for condos

• Declaration, CC&Rs, condo map, and master insurance policy details
• Any developer warranty or unfinished items in newer buildings

How to verify the building type

• Check the King County Assessor/Recorder for the deed and how the property is titled.
• Ask the listing agent for the condo declaration or the co‑op’s proprietary lease and corporate documents.
• Confirm whether your purchase transfers a deed to a unit or shares in a corporation.

Fit guide: Which one is right for you?

You might prefer a co‑op if you

• Value a building culture with clear rules and strong board oversight.
• Are comfortable with board interviews, financial vetting, and possibly higher down payments.
• Want one monthly payment that often includes taxes and some utilities.
• Are open to potentially lower purchase prices in exchange for less flexibility and a smaller resale market.

You might prefer a condo if you

• Need broad financing options, including conventional loans and the possibility of FHA/VA where eligible under HUD guidance.
• Want easier resale and a larger buyer pool.
• Prefer to manage your own mortgage and taxes separately from HOA dues.
• Value flexibility for renting or shorter ownership timelines, subject to HOA rules.

Quick comparison

Three buyer scenarios

Location‑first buyer

If you want walkability and quick access to transit, you’ll find options in both categories on Capitol Hill. Since more condo inventory exists, you may see a wider range of layouts and prices, but a well‑located co‑op can deliver similar convenience if you’re comfortable with board rules.

Budget and monthly‑cost buyer

If predictable monthly costs matter most, a co‑op’s maintenance fee may simplify your budget by bundling taxes and some utilities. If your priority is minimizing the down payment and accessing more lenders, a condo often wins.

Flexibility or investor‑minded buyer

If you anticipate renting the unit or reselling within a few years, condos usually offer more flexibility and a larger buyer pool. Co‑ops often restrict subletting and require buyer approval, which can slow exits.

Next steps

Choosing between a co‑op and a condo on Capitol Hill comes down to your financing plan, need for flexibility, and comfort with board oversight. Your best move is to get clear on the building type early, secure the right lender, and review the documents before you write an offer. If you’d like a guided path, connect with TeamUp Seattle. We can help you compare buildings, gather documents, and plan a smooth purchase timeline in 98102.

FAQs

What’s the legal difference between a co‑op and a condo in Washington?

• Condos give you a deed to your unit under RCW 64.34; co‑ops sell you shares in a corporation plus a proprietary lease, not a unit deed.

How does co‑op board approval affect closing in Capitol Hill (98102)?

• Board interviews and approvals can add days or weeks and introduce the risk of a declined application, so build extra time into your contract.

Can I use FHA or VA loans for a Capitol Hill co‑op?

• FHA/VA approvals are less common for co‑ops; check program details on HUD’s site and confirm with your lender early.

Why do co‑op monthly fees look higher than condo HOA dues?

• Co‑op maintenance often includes the building’s mortgage, property taxes, insurance, and some utilities, which condo owners pay separately.

How can I verify whether a building is a co‑op or a condo in King County?

• Search the King County Assessor/Recorder for deed and title language and request the condo declaration or co‑op corporate documents from the listing agent.

Are co‑ops harder to resell than condos in Seattle’s 98102?

• Often yes, because of board approvals and fewer lender options, which can reduce the buyer pool and lengthen timelines compared to condos.