Buying your first home can be a challenge: You have to find something you want to buy, pull together enough money for a down payment and get approved for a mortgage. Bankrate looked at affordability, the availability of homes and other factors and found these are the best states for first-time homebuyers.
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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.
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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.
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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.
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.
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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.
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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.
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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.
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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.
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.
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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.