6 Cities Where $25,000 Is Enough for a Down Payment

Today’s housing market is a challenge – to put it mildly. Home prices are high, interest rates are also high and sometimes it feels like our bank accounts can’t keep up. But that’s not the case in every city – including many you might want to live in.

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Democratic presidential candidate Kamala Harris has proposed an economic plan that would offer up to $25,000 in down payment support to first-time homebuyers. While $25,000 might not seem like much in many of today’s high-priced markets, it can go surprisingly far in others. In fact, according to Realtor.com , this amount could cover more than 10% of a home’s purchase price.

Here are six markets where $25,000 is enough for a down payment.

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Charleston, West Virginia

In Charleston, West Virginia, $25,000 represents 14.6% of the median listing price. As of August 2024, the median home price in Charleston was just $171,000, making it the most affordable market among the 200 largest U.S. metros analyzed by Realtor.

This capital city, which is set amongst the gorgeous Appalachian Mountains, has both natural beauty and an emerging urban scene that makes it appealing for first-time home owners. It’s well worth exploring if you’re in the market with a limited budget.

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Peoria, Illinois

In Peoria, Illinois, $25,000 would cover 14.1% of the median home price. With a median listing price of $178,000 in August 2024, Peoria is where it’s at if you want affordable housing options in the heart of the Midwest. The city has a rich history, a newly thriving culinary scene and tons of nearby natural beauty to keep new owners busy for a long time to come.

Youngstown-Warren-Boardman, Ohio-Pennsylvania

In the Youngstown-Warren-Boardman metropolitan area, which sits on the Ohio-Pennsylvania border, $25,000 equates to a 13.2% down payment on the median-priced home. With a median listing price of $190,000, this area has lots of decent and affordable housing options and all in close proximity to major cities like Cleveland and Pittsburgh. It’s an exciting opportunity to be part of an up-and-coming location.

Flint, Michigan

In Flint, Michigan, $25,000 covers 12.5% of the median home price. August 2024 saw median listing prices at $200,000 in this city known for its resilience and ongoing revitalization efforts. Despite challenges, Flint has affordable housing options and a strong sense of community.

Huntington-Ashland, West Virginia-Kentucky-Ohio

The Huntington-Ashland metropolitan area, spanning parts of West Virginia, Kentucky and Ohio, is another good place to look for inexpensive homes. Here, $25,000 would cover 12.1% of the median home price, which stood at $207,000 in August 2024. This tri-state region has lots of industry, beautiful scenery and good food. What more could you ask for?

Rockford, Illinois

Finally we have Rockford, Illinois, where $25,000 represents 11.6% of the median listing price. With homes listed at a median of $215,000 in August 2024, Rockford has affordable housing and is within driving distance of Chicago – a commuter’s dream.

Of course, these cities are good deals, but they’re not the only ones. If you’re willing to drop to a 5% down payment, that opens up 124 of the 200 largest U.S. metros, including higher-priced markets like Durham-Chapel Hill, North Carolina; North Port-Sarasota-Bradenton, Florida; and Las Vegas, Nevada.

However, there are a few other things to keep in mind. Even if $25,000 covers a large percentage of your down payment (or the whole thing), you’ll need more money than that to consider homeownership. You have to consider closing costs, insurance and other expenses. Once the deal is done, there’s still your monthly mortgage fee, maintenance, property taxes and more.

You should also keep in mind that while a 10% or higher down payment is common, it’s not always mandatory. Many buyers secure loans with smaller down payments, especially when using FHA, VA or other government-backed loan programs.

This article originally appeared on GOBankingRates.com : 6 Cities Where $25,000 Is Enough for a Down Payment