Where Are The Most Affordable Homes In America?

High demand and a limited supply of homes can make it challenging to find affordable property in certain parts of the United States. Nonetheless, homes in regions that are comparatively reasonably priced are still on the market.

Once you've identified your ideal property, New American Funding is available to assist you in turning that vision into a reality by working with you to find a mortgage that best suits your needs and financial situation.

---

The Most Affordable Places To Buy A Home In The United States

If you’re looking for the state with the cheapest homes on the real estate market, look no further than West Virginia. Data from Zillow Home Value Index shows the average cost of a home in the Mountain State is $146,578.

Following West Virginia, here are the states with the lowest median home values in 2023, according to World Population Review data:

• Mississippi: $125,500
• Arkansas: $133,600
• Oklahoma: $142,400
• Kentucky: $147,100
• Indiana: $148,900
• Alabama: $149,600
• Ohio: $151,400
• Iowa: $153,900
• Kansas: $157,600

The data for this list compares the average home price, household income, estimated monthly mortgage payment, and income-to-mortgage ratio to determine the best overall affordable state to live in.

Although a low-priced home may be important, other contributing factors like the safety of the area and the cost of living can influence home-buying decisions. With the latter in mind, Iowa quickly climbs to the top of the “most affordable” list, with an average cost of living around 90% of the national average. Iowa even has a 10.6% average income-to-mortgage ratio, according to data from the U.S. Department of Housing and Urban Development and World Population Review.

---

What Factors Influence Housing Prices?

Housing prices are generally influenced by factors outside of the real estate market — and interest rates — which fluctuate. Demographics also impact the real estate market because the population’s needs and wants in their homes begin to affect and enforce new real estate trends.

Real estate value is also affected by the overall health of the economy, measured by indicators such as gross domestic product, employment, and prices. The cyclicality of the economy affects different types of real estate differently, and it’s important to be aware of the economic cycle and the sensitivity of the real estate property to it. Additionally, legislation involving tax credits, deductions, and subsidies can influence the supply and demand of the housing market.

Various factors can affect the cost of buying a home in any state, including the state's economy, wages, and unemployment rates. High household incomes and home prices contribute to economic growth, job creation, and home appreciation. The strength of the local job market is a significant factor in housing affordability, as people can afford the properties in those areas.

However, fast growth trends can lead to unaffordable prices, while a lack of good jobs can make even low home prices unaffordable. Therefore, an ideal balance between these extremes is necessary for housing affordability.

---

Tips For Saving Up For And Purchasing A Home

There are several steps you should take to prepare for buying a home. First, review your credit history to ensure it is in good shape and dispute any errors. Limiting your debt or increasing your income can improve your debt-to-income ratio and make you more appealing to lenders. Additionally, getting pre-approved from a lender — like New American Funding — can give you an idea of the properties you can afford. Understanding additional costs such as one-time and recurring fees, can help with financial planning during this time.

Find a real estate agent who embodies the characteristics you value most to make your home search more enjoyable. While you differentiate between wants and needs in a home, the real estate agent who understands you can prioritize fulfilling your needs. Additionally, when you visit a potential home, scope out the neighborhood to ensure it meets your lifestyle requirements and hire a reliable home inspector to confirm everything is up to code.

Here are some tips to help you save money for your future home purchase if you're unsure where to start:

• Create a budget by analyzing income and expenses and cutting any unnecessary expenses.
• Save your tax refund and any additional income from a raise, a new job, or a side gig.
• Ask for financial help from relatives or friends.
• Research down payment assistance programs.

---

New American Funding Helps Make The Dream Of Homeownership A Reality

With branches across the United States, New American Funding presents an array of programs to facilitate homeownership for you based on your unique financial situation. These programs include:

• NAF Cash* — NAF Cash, an affiliated company of New American Funding, will purchase your dream home upfront with a cash offer, which tends to be stronger in the eyes of sellers and could help you save on the purchase price. Then, you can purchase the home back at the original price (plus a minor convenience fee).
• 5-Year Rate Protection Pledge — With New American Funding’s 5-Year Rate Protection Pledge, you can purchase (or refinance) a house now and refinance anytime within the next five years if interest rates drop. This refinancing offer comes free of any lender or appraisal fees.
• Buydown Loan — A Buydown Loan can be a great option for first-time home buyers working with little funds to make necessary home improvements or upgrade outdated appliances. This loan offers homeowners a lower payment rate on the first, second or even third year of a 30- or 15-year fixed-rate mortgage.

New American Funding Loan Officers are available to offer personalized support for any questions you may have regarding these programs or any stage of the home-buying process.

New American Funding provides a range of products with competitive pricing, efficient closing, and dedicated customer service. They aim to help clients achieve the American dream of homeownership and improve their standard of living, all with the “people come first” mentality.

In 2022, New American Funding was recognized as #1 in customer satisfaction among mortgage servicers by the J.D. Power 2022 U.S. Mortgage Servicer Satisfaction Study. The company was able to achieve this prestigious recognition through its dedication to helping every client from every background achieve homeownership.

---

Take the guesswork out of finding the best home mortgage for your needs by choosing New American Funding to assist you. Contact a Loan Officer today to get started!

---

*NAF Cash is fulfilled by NAF Cash LLC, an affiliated real estate company of New American Funding that is managed and operated in compliance with applicable legal and regulatory requirements. NAF Cash LLC does not originate loans or issue loan commitments. Terms and Conditions apply. Not available in all states. MI Real Estate Broker #6502431375. 41050 W 11 Mile Rd, Suite 220, Novi, MI, 48375. Phone 844-344-0531.