real estate

The 10 best states for first time homebuyers

10 best states for first time homebuyers | TommyBrison/Shutterstock.com

Nebraska | John Elk/Getty Images

10. Nebraska

Homes can seem pretty cheap in the Cornhusker State — it's fifth-lowest for the share of a typical person's income that goes toward house payments (13.9 percent). Nebraska also has one of the smallest percentages of home loan rejections.


Nebraska | debra millet/Shutterstock.com

9. Vermont

First-time buyers should find a good choices of homes in Vermont — we found it's one of the states where the supply of houses is best keeping up with demand. Another plus: low unemployment among young adults.


Wyoming | WitGorski/Shutterstock.com

8. Wyoming

Here's an encouraging stat for young, would-be buyers in Wyoming: 41.5 percent of households under 35 live in homes they own. The state also offers a healthy job market for that age group.

When you're ready to buy, use Bankrate's mortgage calculator to see how much home you can afford.


South Dakota | Walter Bibikow/Getty Images

7. South Dakota

Lenders like to say yes in the Mount Rushmore State: A relatively low 6.5 percent of mortgage applications were turned down in the most recent year. Like Wyoming, South Dakota has a high percentage of younger households owning homes.


North Dakota | csfotoimages/Getty Images

6. North Dakota

North Dakota has, on average, the nation's lowest unemployment rate among the 25- to 34-year-olds who often are first-time homebuyers. So, maybe it's not surprising that homeownership is above average for that age group.


Missouri | Eddie Brady/Getty Images

5. Missouri

First-time homebuyers will find a good selection in Missouri, where a comparatively high percentage of homes are on sale at any one time. Housing payments put a smaller bite on income than in most states.


Kansas | John Elk/Getty Images

4. Kansas

Unemployment is low and access to credit is as high as the sunflowers in Kansas, which has one of the nation's lowest percentages of home-purchase loans rejected by lenders.


Minnesota | gmstockstudio/Getty Images

3. Minnesota

Minnesota boasts the highest rate of homeownership among households under age 35, at 45 percent. It has the nation's second-lowest loan rejection rate, meaning a young first-time buyer may have an easier time getting approved.

COOL TOOL: Use Bankrate's mortgage calculator to find out how much mortgage you can afford.


Utah | photo.ua/Shutterstock.com

2. Utah

Utah is close to the top of our ranking because it has the nation's third-lowest unemployment rate among the young adults who tend to be first-time homebuyers. It has the third-highest percentage of young-adult households living in homes they own.

When you're ready to get off the sidelines, shop Bankrate for today's lowest mortgage rates.


Iowa | Kirk Edwards/Getty Images

1. Iowa

Several things put Iowa on the bottom. It's the state with the tightest housing market, with just 0.76 percent of homes available for sale at any one time. For a typical homeowner, 35.2 percent of income goes to house payments; the national average is 19.4 percent. And, the state has one of the smallest percentages of younger households living in homes they own.

Your state didn't make this list? See if it's one of our worst states for first-time homebuyers.

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Life's Financial Journey: Buying your first home Eager to have a living space where you can proudly say, "I own this"? Find out what every first-time homebuyer needs to know.
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