WORST STATES FOR FIRST TIME BUYERS

Whats up everyone

I’ve been doing this series on the best states for certain things and the worst states for certain things. I mean, let’s face it, a lot of people can still work from home, so why not see what’s out there to choose from.

In my research, I found 2 really interesting studies – one that lists the Worst states for first time buyers and another that lists the Happiest States to live in. 

Ironically, there was a lot of crossover between the top 10 of the 2 studies…So does that mean first time buyers can’t also be happy in the state they choose to live in?

When deciding which video to do, I figured that cost was top of mind these days with the crazy housing market and inflation making it nearly impossible for a first time buyer to afford to buy a house today so we’re going to go through the worst states for a first time buyer. 

Let’s dive right in

So like I said, there was a lot of crossover between these states and the happiest states so stay tuned until the end and I’ll reveal at least one of them to see what you guys think.

This study was done by gobankingrates.com and they based their criteria on which states offered the best financing options for first time homebuyers, ranking the 50 states based on three factors: the yearly mortgage for a typical single-family home, as determined by Zillow in June 2023, (I’m not sure how reliable Zillow is but lets continue) and assuming a 6% down payment; the current interest rate on a 30-year, fixed loan as sourced from the St. Louis Federal Reserve (keep in mind this article is from August and rates have gone up since then so add a bit); and estimated property taxes, as sourced from the Tax Foundation.

GOBankingRates also shared the costs of buying a two-bedroom single-family home, which might appeal to first-time buyers, as well as the foreclosure rates in each state, as sourced from SoFi for June 2023.

So remember, these are the Worst states for first time homebuyers. We’ll Start with #10 and work our way to the #1 Worst state

And I’ll share with you a tip that they provide for first time buyers for each state which may be really helpful.

#10 Nevada

Nevada’s median home price was just under $300,000 five years ago, according to Redfin. That means home values have increased by almost 50% in that time, making it tougher to buy a house.

The Nevada Housing Division offers home financing through its Home Is Possible programs, which provide money for down payment or closing costs. The assistance is forgivable after seven years, provided you stay in your home.

#9 Delaware

Awe man, I love Delaware! Esp the beaches. But it is expensive.

Foreclosure rates in Delaware are among the highest in the country, but first-time homebuyers can get some financial help. A first-time homebuyer tax credit can give homebuyers a tax reduction of up to $2,000.

In June, the Delaware State Housing Authority introduced four programs to spur home ownership, assisting with both mortgage loans and down payments.

#8 Florida

In terms of foreclosures, Florida is among the worst states to buy a home. If you’re a first-time homebuyer in Florida, check out the state’s homebuyer program to see if you qualify, as well as its down payment assistance program. As with other states, the repayment on down payments can be deferred during the life of the mortgage. It’s worth a look since you might need all the assistance you can get to make your paycheck stretch further.

#7. Washington

At the start of 2019, Washington’s median sales price sat right about $400,000, according to Redfin. Now, the typical home has a value approaching $600,000. First-time homebuyers could find a benefit in checking out the state’s Home Advantage and House Key Opportunity programs, which connect purchasers with mortgage providers, or the down payment assistance offering.

#6. Connecticut

First-time homebuyer programs can help alleviate the burden of Connecticut’s cost of living. The Connecticut Housing Finance Authority offers a range of home loan products that first-time homebuyers can take advantage of, including its conventional homebuyer mortgage program and assistance with down payments and closing costs.

#5. Maryland

Housing costs aren’t cheap in Maryland, with the typical single-family home valued at nearly $400,000.

First-time homebuyers in Maryland can take advantage of several loan products provided by the state Department of Housing and Community Development through the Maryland Mortgage Program. Offerings include a 30-year, fixed-rate mortgage with down payment assistance. State transfer tax

#4. Massachusetts

Typical single-family homes in Massachusetts hit the $600,000 mark in June, and homebuyers likely would welcome assistance. MassHousing says it provides about $700 million annually to about combined 3,000 buyers each year through loans and down payment assistance.

#3. New Jersey

The value of a typical single-family residence in New Jersey is almost a half-million dollars, giving the state the ninth-highest price. That doesn’t make it easy for first-time homebuyers.

New Jersey has assistance available for first-time homebuyers. The Homeward Bound Mortgage Program has a 30-year, fixed-rate government-insured loan for qualified applicants. It can be used in conjunction with the state’s Down Payment Assistance Program, which provides either $10,000 or $15,000 toward closing costs and/or a down payment, depending on the location of the property. Best of all, the down payment loan is forgiven if the homebuyer lives in the property for five years and doesn’t refinance the mortgage.

#2. California

With the second-costliest real estate in the nation, California isn’t an easy market for first-time buyers. Still, you can apply for the CalPLUS Conventional Program and CalHFA Zero Interest Program CalPLUS FHA Program to help manage the cost of buying a home. The latter is for closing costs.

#1. Hawaii

Hawaii easily takes first place for the most expensive housing in the U.S. If you’re looking to buy your first home in Hawaii, some help might be available. Hawaiian first-time homebuyers can apply for the Down Payment Assistance Loan program offered through the Hawaii HomeOwnership Center.

Dang- almost a million dollars. That’s crazy!

So out of the top 10 worst states for first time homebuyers, 7 of them are on the top 10 Happiest States in the US list! That cant be a coincidence. 

Regardless, that video is for another day, but I will share with you that my state, Maryland, while being the 5th worst state for first time buyers according to gobankingrates.com, is also the 3rd Happiest state out of all 50 according to Wallethub!

Leave a Reply