Thinking about a condo or a co-op in Cambridge but not sure which fits you best? You are not alone. Both options can be smart, but they work very differently when it comes to ownership, financing, fees, and the buying process. In this guide, you will learn the key differences, what to expect in Cambridge, and how to choose with confidence. Let’s dive in.

Big picture: Condo vs. co-op

A condo gives you deeded ownership of your unit plus a share of the common areas. A co-op gives you shares in a corporation that owns the building and a proprietary lease to occupy your unit. That one difference affects how you finance, what you pay each month, and how you resell.

In Cambridge, you will find condos across many neighborhoods and building styles. Co-ops exist too, though they are generally less common. Your best choice comes down to your financing plan, timeline, and comfort with board rules.

Ownership and legal structure

Condos: Deeded real property

When you buy a condo, you receive a deed to your unit and an undivided interest in the common elements. Your ownership is recorded at the Middlesex County Registry of Deeds. You receive your own property tax bill from the City of Cambridge based on the assessed value of your unit.

The condo is governed by a master deed or declaration, bylaws, and rules. These set how the building is managed, how assessments are set, and what approvals are needed for changes.

Co-ops: Shares and a proprietary lease

In a co-op, a corporation owns the building and land. You buy shares in that corporation and receive a proprietary lease that gives you exclusive rights to your unit. Your purchase is recorded in the corporation’s books rather than at the Registry for a deed transfer. The corporation pays the property tax for the building, and you pay your share through monthly maintenance.

Co-ops are governed by corporate bylaws and house rules. The board often has broad authority over admissions, subletting, and renovations.

What this means in Cambridge

• Condo owners hold real property with recorded title. You can search unit records at the Registry of Deeds.
• Co-op residents hold a personal property interest in shares plus a lease. Corporate records reflect your ownership.
• The legal framework is different. Condos follow the Massachusetts condominium statute, while co-ops follow corporate law and their governing documents. You should review all documents and consult an attorney if you have questions.

Financing and lender differences

How the loans work

• Condos: Lenders issue a mortgage on the unit. Conventional, FHA, and VA options may be available, often with project or association eligibility requirements.
• Co-ops: Lenders issue a share loan secured by your stock and proprietary lease. Not all lenders offer these. Some banks and credit unions in Greater Boston specialize in co-op financing.

Down payments and underwriting

Co-ops often require higher down payments. Boards may set minimum equity of 10 to 25 percent or more and review your financials closely. Condos can be financed with lower down payments under some programs, such as conventional options around 3 to 5 percent or FHA options where a project qualifies. Your lender will confirm current program rules.

Project and program eligibility

Many mortgage programs require proof that a condo association meets certain standards, such as reserve funding, owner occupancy, and litigation status. If a condo is not eligible under your program, financing can be limited. For co-ops, confirm early that your lender will finance shares, and ask about down payment, debt-to-income ratios, and reserve requirements.

Local tip for Cambridge buyers

Start financing conversations early and be specific about the ownership type. If you are considering smaller co-ops or older buildings, confirm that your lender can do share loans and that the co-op allows your loan terms. For condos, ask your lender to check project eligibility before you get attached to a unit.

Governance, fees, and board approval

Who runs the building

• Condos: An association led by elected trustees manages the building, sets monthly fees, maintains reserves, and hires vendors.
• Co-ops: A board of directors manages operations, sets maintenance, and approves buyer admissions.

Monthly fees and what they cover

• Condo fees typically cover common area upkeep, building insurance for common elements, management, and reserves. You usually carry your own HO-6 policy for your unit interior and belongings.
• Co-op maintenance often covers more, including the building’s property taxes, building insurance, management, reserves, and sometimes a building-level mortgage or utilities. Your share of these costs is included in your monthly payment.

There is no universal rule on which is lower. Compare line-by-line what is included, the building’s reserve health, and any special assessments.

Board approval and timelines

• Condo purchases rarely involve board approval of the buyer. You may see a right of first refusal or simple move-in requirements.
• Co-op purchases usually require a full application package, financial review, and a board interview. Boards can approve or deny subject to anti-discrimination law. This can add time to your closing.

Resale, renting, and marketability

Liquidity and buyer pool

Condos generally have a broader buyer pool, including investors and buyers using a range of mortgage products. Co-ops can have a narrower pool due to board approvals, higher down payments, and sublet limits. That can affect time on market.

Rental and sublet rules

Rules vary by building. Many co-ops restrict or cap subletting, and many condos allow rentals but may set conditions. If renting is part of your plan, review the governing documents before you make an offer.

Cambridge neighborhood context

• You will find many condos across Kendall Square, NorthPoint, Cambridgeport, Inman Square, Porter Square, and near Harvard Square, including new builds and adaptive reuse.
• Co-ops are present in Cambridge but are generally less prevalent. Some are in older brick or brownstone buildings that were converted in the 20th century. Availability changes by block, so check active inventory with a local search or broker.

Due diligence checklists

Ask for these documents: condos

• Master deed or declaration, bylaws, and rules and regulations
• Association budget, current financials, and any reserve study
• Meeting minutes for the last 12 to 24 months
• Monthly common charges and any pending or recent special assessments
• Association master insurance certificate and HO-6 requirements
• Litigation disclosures
• Project eligibility status if you are using FHA, VA, or agency loans
• Unit title search results from the Registry of Deeds

Ask for these documents: co-ops

• Articles of incorporation, bylaws, and proprietary lease
• Current house rules and sublet and pet policies
• Corporate financials, budget, reserve study, and any audit
• List of shareholders and current maintenance schedule
• Details on the building’s mortgage or other debt
• Meeting minutes for the last 12 to 24 months
• Pending litigation disclosures
• Board application requirements and approval timeline
• Confirmation that lenders can place a lien on shares

Questions your lender will ask

• Is it a condo or a co-op, and what is the exact legal structure?
• For condos, does the association meet program eligibility requirements?
• For co-ops, does the board permit share loans, and which lenders are acceptable?
• What is the down payment and reserve requirement for this building and program?
• Are there any special assessments or litigation that could affect approval?

Closing timelines and key steps

• Condo closing

  1. Secure mortgage pre-approval and confirm project eligibility if needed.
  2. Conduct title search and obtain title insurance on the unit.
  3. Review condo documents and confirm assessments and insurance.
  4. Close and record the deed at the Registry of Deeds.
  5. Association updates owner records and billing.

• Co-op closing

  1. Obtain pre-approval for a share loan with a lender that finances co-ops.
  2. Complete the co-op application and submit supporting documents.
  3. Attend a board interview and secure approval.
  4. Receive final loan commitment for the share loan.
  5. Close by transferring corporate shares and executing the proprietary lease. Corporate records update. No deed is recorded for a unit transfer.

Taxes and municipal items in Cambridge

• Condos: You receive an individual property tax bill from the City of Cambridge based on your unit’s assessed value.
• Co-ops: The corporation pays the property tax. Your share is included in your monthly maintenance. Request recent tax allocation statements to see your portion.

If you plan renovations, confirm permits and code items with Cambridge Inspectional Services. For documents and ownership verification, use the City Assessor and the Middlesex Registry of Deeds.

Which option fits you best

Choose a condo if you want broader financing options, easier resale, and more flexibility for renting. Choose a co-op if you value a more controlled community, are comfortable with a board-driven process, and can meet higher equity standards.

Ask yourself:

• Do I need low down payment financing or specialty programs?
• How important is rental flexibility now or in the future?
• Am I comfortable with a board application and interview?
• Do the monthly fees and reserves align with my budget and risk tolerance?

If you answer these honestly and review the documents early, you will be set up to make a confident decision in Cambridge.

Ready to compare options in Cambridge

You deserve clear guidance and a smooth process from offer to closing. If you want help lining up financing, reviewing documents, and weighing tradeoffs building by building, reach out to Sean Preston. Let’s connect and find the best fit for you.

FAQs

What is the main difference between condos and co-ops in Cambridge?

• Condos are real property with a deed to your unit, while co-ops give you shares in a corporation plus a proprietary lease to occupy your unit.

How does financing differ for Cambridge condos vs co-ops?

• Condos usually qualify for a wider range of mortgages, while co-ops require share loans from lenders that finance co-ops and may need higher down payments.

Who receives the property tax bill in Cambridge buildings?

• Condo owners receive individual tax bills from the City of Cambridge, while co-op corporations pay the tax and pass each shareholder’s portion through maintenance.

Do co-ops in Cambridge always require a board interview?

• Most co-ops require an application, financial review, and a board interview before approval, which can extend the closing timeline.

Are condo or co-op monthly fees lower in Cambridge?

• There is no universal rule because fees depend on what is included, the building’s reserves, and any assessments, so compare line items and reserve health.

Can I rent out my home in a Cambridge condo or co-op?

• Many condos allow rentals with rules, while many co-ops restrict or cap subletting, so you must review the governing documents before you commit.