Want to Buy a Home for Under $100K? These U.S. Cities Make It Possible

With interest rates rising and inventory tightening, homeownership in America can seem like an impossible goal.

But hope remains—not just in certain cities, but through federal and state assistance programs designed to help first-time and budget-conscious buyers.
 

The Reality Behind Today’s Housing Market

A recent WalletHub report highlights the growing affordability crisis in the U.S. real estate market.

High mortgage rates and a lack of available homes have priced out many Americans, leading some to abandon their dreams entirely.

Yet, geography plays a powerful role in housing costs. In some cities, homes are still available for a fraction of the national average.
 

Affordable Doesn’t Mean Impossible

According to Realtor.com, the required income to purchase a median three-bedroom home assumes:

• 10% down payment

• A 30-year mortgage at 6.65%

• Housing expenses not exceeding 30% of gross income

States with the most homes under $100,000 include:
Alabama, Kentucky, Pennsylvania, Oklahoma, Illinois, Arkansas, Mississippi, Missouri, Kansas, Iowa, Indiana, Louisiana, Michigan, Ohio, and West Virginia.

 

Top Affordable Cities in America

WalletHub’s analysis ranks the following cities highest for affordability:

• Flint, Michigan: Homes average just $61 per square foot, with nearly 21% of listings available.

• Detroit, Michigan: High availability (22%) and even lower median home prices.

• Pittsburgh, Pennsylvania: Offers affordable living with the added appeal of urban lifestyle amenities.

 

How the Government Can Help

For buyers worried about affording a home even in low-cost areas, government programs can bridge the gap:

• FHA Loans: Backed by the Federal Housing Administration, these allow down payments as low as 3.5% for qualified buyers.

• USDA Loans: For rural and suburban areas, these loans require no down payment at all.

• VA Loans: For veterans and military families, these offer no down payment and favorable terms.

• State-Specific Grants: Many states offer down payment assistance programs, tax credits, and low-interest loans to first-time buyers.

 

The Bottom Line

Affordable homeownership isn’t a myth—it’s a matter of location and leveraging available help.

Whether you’re starting your journey or rebooting it, these cities and resources can help make the dream of owning a home a reality.

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