The Best Cities to Buy a House Under $200K in 2024

If you've been dreaming of owning your own home but feel discouraged by soaring prices, don't worry! There are still some incredible cities where you can buy a house for under $200,000. In this article, we'll explore the top 5 cities that offer affordable housing options without compromising on quality of life.

Where Can You Find Affordable Homes?

While coastal cities often steal the spotlight, some of the most affordable areas can be found in Middle America. States like Texas, Indiana, and Ohio are home to cities where you can still find a charming house within your budget.

1. Wichita Falls, Texas

The falls in Wichita Falls Texas

With an average home value of $176,400, Wichita Falls offers affordable housing and low monthly mortgage payments. Residents here spend less than 10% of their income on mortgages, a stark contrast to the national average of over 23%. However, it's important to note that crime rates in Wichita Falls are slightly higher than the national average.

2. South Bend, Indiana

South Bend Indiana Skyline at night

South Bend boasts a median home value of $183,000, making it one of the most affordable housing markets in the country. Despite slightly higher unemployment rates, the job market in South Bend is strong. However, be cautious of the higher crime rates in this area.

3. Toledo, Ohio

Skyline of Toledo Ohio

Toledo offers homes at an average price of $156,000, with affordable mortgage payments of only 7.8% of monthly income. While unemployment rates might be higher than the national average, wages here make homeownership attainable. Just like the previous cities, Toledo experiences higher crime rates compared to the national average.

4. Topeka, Kansas

Topeka Kansas capitol building

The average home price in Topeka is $176,100, and homeowners spend 8.7% of their income on mortgages. With lower unemployment rates and a growing real estate market, Topeka is an attractive option for budget-conscious homebuyers. However, keep in mind that crime rates in this city are also higher than the national average.

5. Montgomery, Alabama

Fountain in Montgomery Alabama

Montgomery offers a median home price of $185,400, with a low unemployment rate of 2.1%. Despite higher crime rates, this city provides a vibrant community and potential for growth. If you're considering buying a house in Montgomery, be prepared to dedicate around 10% of your income to mortgage payments.

How to Find Your Dream Home Under $200K

Finding an affordable home can be challenging, but it's not impossible. Here are some tips to help you in your search:

1. Look beyond your current location. Explore areas with a lower cost of living.
2. Consider rural areas outside the city. You might find hidden gems where your budget can stretch further.
3. Seek assistance from a real estate agent. They have the knowledge and expertise to find a home within your budget and guide you through the buying process.

Essential Tips for Buying a House

Before diving into the home-buying process, here are seven essential tips to help you make a successful purchase:

1. Start saving early. The sooner you save, the more you'll have for expenses like down payment and closing costs.
2. Improve your credit score. A higher credit score can lead to better loan options and lower interest rates.
3. Determine your budget. Set a realistic budget to avoid financial strain.
4. Get prequalified. See what mortgage options are available to you and how much you can borrow.
5. Compare lenders. Different lenders offer various terms, rates, and fees. Shop around for the best offer.
6. Gather your paperwork. Having your financial documents organized will expedite the preapproval process.
7. Get preapproved. A preapproval letter shows sellers you're a serious buyer and can speed up the closing process.

With these tips in mind, you're well-equipped to find your dream home within your budget.

So, don't let rising prices dampen your spirits. By exploring these budget-friendly cities and following our advice, you'll be one step closer to purchasing your own affordable home in no time. Happy house hunting!