HOME ownership can become a reality for first-time buyers with little in savings thanks to these bargain properties below $50,000.
If you’re on your own, you’ll only need $1,750 down payment (3.5%) for a Federal Housing Adminstration (FHA) loan.
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These mortgages are insured by the government agency but the lender is the one giving the cash – find out more in our guide.
The loans are designed for borrowers on a low to moderate income, and could come in handy as house prices have soared this year.
The average house price sat at $287,148 in May, but there are family-sized properties available for cheaper that don’t require a huge down payment.
They’re spread across the US, but they’re not located in the centre of town and most of them are cheap because they’re in need of renovations.
But if you don’t mind relocating or you want to challenge yourself with a fixer-upper, these three- and four-bedroom properties on Zillow could be worth checking out.
Just make sure to factor in renovation costs into your budget, and be aware that the homes could actually sell for more.
Three-bed, New York – $29,500
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In the state of New York, you can get this three-bedroom house with one bath for $29,500.
It means you only need $1,032.50 in savings, if you qualify for a FHA loan with a 3.5% down payment.
The property listing admits the house “needs a lot of interior and exterior work” though, so keep this in mind if before you splash out.
The yellow house is spread over two floors and is located in the Elmira Heights neighborhood.
Three-bed, South Dakota – $29,900
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For another $400, you can buy more of a livable home in Pierre, South Dakota at the price tag of $29,900.
Located on a leased lot, the three-bedroom property comes with a huge master bedroom suite and an open floor plan.
You may want to invest in a new carpet and upgrade the floor, but the property is said to be a “very livable home”.
It comes with double front decks to enjoy the outdoors and also includes a shed for storage.
Four-bed, Indiana – $32,500
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You can get a four-bedroom property in Michigan City, Indiana for $32,500, meaning you’ll only need $1,137.50 for a 3.5% down payment.
It was built in 1920 but you’ll need to do plenty of work to it before you can move in.
The property comes in three units, of which two are in the front building.
Unit one is a two-bed with one bath while unit two is upstairs and comes with one bedroom and one bath.
The third unit, a free standing rear house, is also one bed and one bath.
Three-bed, Florida – $44,000
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If you’re the happiest by the coast, then this three-bedroom, two bath house in Florida may be just what you’re looking for.
Located in Fort Pierce, it’s been listed on Zillow for $44,000.
The master bedroom comes with a walk-in closet and an en suite with a garden tub and walk-in shower.
The second and third bedrooms are at the other end of the house, which also has a covered carport.
Three-bed, California – $49,000
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Another option nearer the sea is this three-bedroom home with three bathrooms in Fallbrook, California.
The property is available for $49,000, so it’s at the upper end of your budget if you only have enough for a 3.5% down payment.
The Zillow listing says it needs some “finishing touches”, but it should be large enough for the whole family.
It has a huge backyard with a storage shed and views to downtown Fallbrook.
Three-bed, Washington – $49,900
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Families in Washington or those happy to relocate to the state can get a three-bedroom house for $49,900.
It comes with off street parking, an open deck and no back neighbors.
The kitchen is dated but the property can be moved into straight away.
You may also be pleased to know that the kitchen appliances, plus shed, washer and dryer can be included.
We explain how much money you’ll need for a down payment, depending on the mortgage you go for.
Some borrowers are owed refunds of part of their upfront mortgage insurance premiums if they didn’t default on their FHA loans.
Earlier this year, a super saver revealed how she bought her first home at the age of 23 on a low income and with an average credit score.