Cheap Homes To Buy
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cheap homes to buy
Home affordability can vary widely from one place to the next, especially with unique taxes, utilities, and other expenses associated with any given city. So many variables can make it hard to find the cheapest state to buy a house.
Iowa came in at the top of our list of the most affordable homes in America. It takes a mere 10.6 percent of the median household income to afford a home in the Hawkeye State. Homes clock in at just $147,800.
North Dakota homes take only 12.27 percent of the median household income to buy a house, putting it twelfth on our list of cheapest states to live in. The typical home costs $193,900, and the median income is just over $90,000.
Through the program options below, USDA Rural Development offers qualifying individuals and families the opportunity to purchase or build a new single family home with no money down, to repair their existing home, or to refinance their current mortgage under certain qualifying circumstances. There are also programs to assist non-profit entities in their efforts to provide new homes or home repair to qualifying individuals and families.
One of the biggest concerns homebuyers face is the ability to afford a home. The Zillow Home Value Index, which measures only the middle price tiers of homes, sets the cost of a typical home in the United States at $344,141. Meanwhile, the median household income in the United States is $67,521 a year, meaning the median household can only afford a mortgage on a $250,000 home. Thus, many may find themselves priced out of homeownership.
Location is the greatest factor contributing to home prices, and costs vary widely from state to state. There are nine states with a typical home value below $200,000 and 8 with a typical home price above $500,000. Those states with the cheapest home prices tend to be concentrated in the Southern states. These states also tend to have lower costs of living overall. Those willing to relocate may find that the house marker offers them better prices elsewhere.
West Virginia is the cheapest state to buy a home. A typical home in West Virginia costs $129,103, nearly $30,000 less than Mississippi's and less than half of the national average. A homebuyer can expect to get 1,792 square feet of living space for that price. With the eighth-lowest property tax rate in the U.S. of 0.59%, homeowners can expect to pay about $762 in state property taxes per year. West Virginia also has the nation's highest homeownership rate, with 79.6% of its residents owning their homes.
Mississippi is the second-cheapest state to buy a home in, with a typical home valued at $157,828. This is less than half of the typical home price in the United States. The median home size in Mississippi is 1,879 square feet, larger than some of the median home sizes in more expensive states. Mississippi homeowners will pay property taxes at a rate of 0.81% per year, setting them back $1,278 annually. Homeownership in Mississippi is the second-highest in the nation, with 74.8% of residents owning their homes.
The typical home value is $183,418 in Iowa, the fifth-lowest in the United States. The average home has 1,550 square feet of living space. With a relatively high property tax rate of 1.56%, homeowners can expect to pay $2,861 in property taxes each year. Still, homeownership rates are among the highest in the nation, with 75.6% of residents owning their homes.
Kentucky is the sixth-cheapest state to buy a home in, with a typical home valued at $188,439. The average home in Kentucky offers 1,750 square feet of living space. Kentucky's effective state property tax rate is 0.86%, which means that a homeowner would pay about $1,621 in state property taxes every year based on the typical home's value. Kentucky's homeownership rate is 68.5%.
Alabama is the seventh-cheapest state to buy a home in. Alabama's median home price is $194,695. The average home size in Alabama is in line with the national average at 1,800 square feet. Alabama has the second-lowest state property tax rate of 0.42%. This, combined with a low median home value, means that homeowners pay only about $818 in state property taxes per year. Homeownership in the state sits at 71.5%.
Kansas is the eighth-cheapest state to buy a home in, with a typical home costing $198,199. This home price gets a homeowner about 1,782 square feet of living space. Kansas's effective state property tax rate is 1.41%, resulting in annual taxes of about $2,795 in taxes per year for homeowners.
Many parents and grandparents take real joy from helping younger members of their families to buy homes with a cash gift toward their down payment. Lenders recognize that. And nearly all are okay with it.
The super cheap houses are mostly in the southern and central regions, mainly Sicily, in offbeat, quiet spots far from the madding crowds where local authorities and private citizens have joined forces to recover pretty empty buildings in perfect shape.
Foreclosure is when a lender takes ownership of a home because of a defaulted loan. Default happens when a borrower misses multiple payments on a home. In some states, lenders have to go to court to get permission to foreclose on a home. Foreclosure is typically a last resort, as it's expensive for the lender and difficult for the homeowner."}},"@type": "Question","name": "What does pre-foreclosure mean?","acceptedAnswer": "@type": "Answer","text": "Pre-foreclosure is when the lender has sent a notice of default to the homeowner, but the home hasn't been foreclosed on. This usually happens when the borrower has missed a set number of payments. During this time, the borrower could catch up on missed payments or work with the lender to modify their loan."]}]}] .cls-1fill:#999.cls-6fill:#6d6e71 Skip to contentThe BalanceSearchSearchPlease fill out this field.SearchSearchPlease fill out this field.BudgetingBudgeting Budgeting Calculator Financial Planning Managing Your Debt Best Budgeting Apps View All InvestingInvesting Find an Advisor Stocks Retirement Planning Cryptocurrency Best Online Stock Brokers Best Investment Apps View All MortgagesMortgages Homeowner Guide First-Time Homebuyers Home Financing Managing Your Loan Mortgage Refinancing Using Your Home Equity Today's Mortgage Rates View All EconomicsEconomics US Economy Economic Terms Unemployment Fiscal Policy Monetary Policy View All BankingBanking Banking Basics Compound Interest Calculator Best Savings Account Interest Rates Best CD Rates Best Banks for Checking Accounts Best Personal Loans Best Auto Loan Rates View All Small BusinessSmall Business Entrepreneurship Business Banking Business Financing Business Taxes Business Tools Becoming an Owner Operations & Success View All Career PlanningCareer Planning Finding a Job Getting a Raise Work Benefits Top Jobs Cover Letters Resumes View All MoreMore Credit Cards Insurance Taxes Credit Reports & Scores Loans Personal Stories About UsAbout Us The Balance Financial Review Board Diversity & Inclusion Pledge View All Follow Us
Budgeting Budgeting Calculator Financial Planning Managing Your Debt Best Budgeting Apps Investing Find an Advisor Stocks Retirement Planning Cryptocurrency Best Online Stock Brokers Best Investment Apps Mortgages Homeowner Guide First-Time Homebuyers Home Financing Managing Your Loan Mortgage Refinancing Using Your Home Equity Today's Mortgage Rates Economics US Economy Economic Terms Unemployment Fiscal Policy Monetary Policy Banking Banking Basics Compound Interest Calculator Best Savings Account Interest Rates Best CD Rates Best Banks for Checking Accounts Best Personal Loans Best Auto Loan Rates Small Business Entrepreneurship Business Banking Business Financing Business Taxes Business Tools Becoming an Owner Operations & Success Career Planning Finding a Job Getting a Raise Work Benefits Top Jobs Cover Letters Resumes More Credit Cards Insurance Taxes Credit Reports & Scores Loans Financial Terms Dictionary About Us The Balance Financial Review Board Diversity & Inclusion Pledge Mortgages & Home Loans Financing Your Home PurchaseHow To Buy a Cheap ForeclosureThe phrase "cheap foreclosure" is relative, but you can still find bargainsByElizabeth WeintraubUpdated on March 7, 2022Reviewed byJeFreda R. Brown Reviewed byJeFreda R. Brown Facebook Instagram Twitter JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. She is the CEO of Xaris Financial Enterprises and a course facilitator for Cornell University.learn about our financial review boardFact checked byKatie TurnerIn This ArticleView AllIn This ArticleBuy at a Trustee AuctionBuy at a Private Online AuctionBuy Directly From the BankForeclosures in the MLSBuy From Federal AgenciesFrequently Asked Questions (FAQs) Photo: The Balance / Adriana Sanchez 041b061a72