Neighbors Bank Highlights Top Ten U.S. Cities for First-Time Homebuyers in 2025

Neighbors Bank Unveils the Top 10 U.S. Metros for First-Time Homebuyers in 2025



In a recent announcement, Neighbors Bank has revealed its ranking of the best cities for first-time homebuyers in 2025. This comprehensive list shines a spotlight on metropolitan areas that offer favorable conditions for new buyers, emphasizing affordability, housing financing options, and overall quality of life. According to Jake Vehige, president of mortgage lending at Neighbors Bank, purchasing your first home is a significant milestone, and potential buyers should evaluate a wide range of options to make informed decisions.

The list comprises cities where housing costs are aligned with income levels, access to government-backed mortgage programs is strong, and where vibrant communities thrive, catering to both those who enjoy the bustle of urban life and the tranquility of small towns.

A Look at the Top 10 Cities


1. Oklahoma City, OK - Topping the list, Oklahoma City boasts a median home price of $240,048, making housing affordability particularly favorable as it only consumes 28% of the average household income. The metro area attracts residents with its vibrant downtown and cultural districts, such as Bricktown and the Paseo Arts District.

2. Huntington-Ashland, WV-KY-OH - This tri-state area offers the lowest home prices, with housing costs averaging just 22% of income, and benefits from high FHA and VA loan activity. The region is known for its outdoor activities, including Appalachian hikes and regional festivals.

3. Lubbock, TX - Notable for its high percentage of FHA loan usage, Lubbock allows homebuyers to enjoy a cost of living that requires just 27% of their income. The city's strong community spirit and outdoor adventures make it appealing for new homeowners.

4. Baton Rouge, LA - Combining low property taxes with robust USDA and FHA loan options, Baton Rouge showcases a lively cultural scene. Housing costs remain manageable, keeping most household expenses under the 30% threshold.

5. Pittsburgh, PA - This city offers an East Coast experience without the hefty price tag. Housing costs are a mere 25% of income, adding to the allure of its rich cultural landscape, along with low income tax.

6. St. Louis, MO-IL - With competitive home prices and ample USDA-eligible areas, St. Louis balances affordability with a rich array of recreational and artistic offerings. The metropolitan area supports diverse lifestyles and interests.

7. Jackson, MS - Jackson enjoys the distinction of the lowest housing costs relative to income among the top ten cities, bolstered by a robust loan support system. Residents appreciate the city’s historical richness and vibrant local culture.

8. Indianapolis-Carmel-Greenwood, IN - This metro blends low living costs with favorable loan accessibility, although buyers need to be cautious of property tax implications. Residents relish a mix of sports, arts, and community green spaces.

9. Cincinnati, OH-KY-IN - Despite housing expenses nearing 30% of income, Cincinnati’s below-average living costs, along with solid loan options, maintain its competitive status for new buyers.

10. Chicago-Naperville-Elgin, IL-IN - Although it presents the highest property taxes and home prices on the list, the vast metro area is accessible for first-time buyers due to strong loan activity and widespread community amenities.

Assistance Programs Tailored for First-Time Buyers


For first-time buyers, securing a down payment poses a significant obstacle. Neighbors Bank highlights several specialized loan programs designed to alleviate this financial burden, including:
  • - FHA Loans: Requiring as little as a 3.5% down payment and known for lenient credit requirements, making homeownership more accessible.
  • - HomeReady® and Home Possible®: These programs promote inclusivity for low-to-moderate income buyers, necessitating only 3% down and offering a streamlined approval process.
  • - VA Loans: Available for eligible veterans and active military members, these loans provide 100% financing with no down payment and no private mortgage insurance.
  • - USDA Loans: Aimed at buyers in designated rural areas, these loans require no down payment and provide an excellent route to affordable homeownership.

Conclusion


The 2025 rankings by Neighbors Bank provide valuable insights into the optimal cities for first-time homebuyers across the United States, with a specific focus on affordability and quality of life. For prospective buyers weighing their options, this list serves both as an informative guide and a hopeful perspective on the journey to homeownership.

Topics Financial Services & Investing)

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