Many people are having a hard time saving for a down payment on a home, but in rural America, remote workers may be closer to home ownership than some people might think.
According to Mortgage Research Network, across rural America, some cities are offering generous cash incentives to attract new residents and in at least one case, a city offers a big enough incentive to cover almost a 20% down payment on a home. That help the newcomers avoid mortgage insurance and reduces monthly payments significantly.
Mortgage Research Network said it compared cash mover incentives to local home prices and that eight cities offer at least 3% of the area’s average home price, the minimum down payment for a conventional mortgage.
Here are programs Mortgage Research Network listed, beginning with the largest benefit relative to area home prices.
- Jackson, Michigan: 19.7% of home price
- West Memphis, Arkansas: 8.2% of home price
- Topeka, Kansas: 7.5% of home price
- St. Joseph, Michigan: 5% of home price
- Tulsa, Oklahoma: 4.6% of home price
- Morgantown, West Virginia: 4.3% of home price
- Newton, Iowa: 4.2% of home price
- Mattoon, Illinois: 4.1% of home price
According to Mortgage Research Network, the city of Jackson is building 100 new homes and offering generous incentives to locals and distant remote workers alike. The median home price is $186,413 in Jackson, and the city is offering these new, three-bedroom, one-and-a-half bath, 1,232-square-foot homes for $178,000 before incentives, Mortgage Research said. Jackson will give $25,000 in down payment assistance and it encourages buyers to apply for an additional $10,000 from the Michigan State Housing Development Authority assistance program.
West Memphis, Topeka Are Next on the List
No. 2 city, West Memphis, Arkansas is just across the river from its more famous neighbor, Memphis, Tennessee. West Memphis offers a $10,000 mover incentive for homebuyers. Mortgage Research Network noted that music lovers will be a short drive from the Home of the Blues, Elvis Presley’s Graceland, Sun Studio, and dozens of other music history attractions.
At No. 3, Topeka, Kansas, works with area employers to offer up to $15,000 in incentives that can be used toward buying a home. There’s a catch for remote workers, though. They have to find a full-time job in the area to be eligible. But Mortgage Research said that those who want to trade Zoom meetings for face time might find this offer attractive.
No. 4 St. Joseph Michigan, entices homebuyers with $10,000 toward a home or up to $15,000 for those enrolling children in public schools, Mortgage Research Network said. Movers can choose two bonuses such as a year of coworking space, car service to local airports, and an annual rail pass. The program boasts of tight-knit coastal communities just 90 miles from Chicago, Mortgage Research said, but at a fraction of the cost of the big city.
Tulsa, Oklahoma is No. 5 on the list. Mortgage Research said Tulsa’s program is one of the most famous in the nation. The Tulsa Remote program seeks to attract young professionals to the city. Steps to qualify include an application, interview, receiving your application decision, then moving and receiving your grant.
Morgantown, West Virginia at No. 6 has the Ascend WV program which offers $12,000, paid in 24 monthly installments upon moving. People who supply proof of an upcoming home purchase will receive a lump sum and can apply it to their down payment, Mortgage Research said. But financial payment isn’t the only perk, according to Morgantown’s program. Outdoor enthusiasts might be equally motivated about enjoying $2,500 in free gear rental to get the most out of these mountain communities.
At No. 7, Newton, Iowa says it wants to improve the quality of its housing stock in a big way. It’s incentivizing builders to construct new homes in a novel and smart way: by attracting homebuyers. Mortgage Research noted that the Newton Housing Initiative offers $10,000 when buying a brand new home with a price of at least $240,000. The incentive is paid at closing of the new home, meaning you can apply it toward your down payment directly.
Mattoon, Illinois is No. 8. Its Move To Mattoon program offers a $5,000 cash incentive for moving, and sweetens the deal with $3,000 in local services and one year of free coworking space.
