For first-time homebuyers, location is key. According to Neighbors Bank’s 2025 Top 10 Cities for First-Time Homebuyers report, Oklahoma City, Huntington (WV), and Lubbock (TX) rank among the best metros for affordability, loan access, and quality of life.
“Buying your first home is a major milestone, and in today’s environment, buyers need to weigh all of their options,” said Jake Vehige, President of Mortgage Lending at Neighbors Bank. “We focused on places where housing costs align with local incomes, where access to down payment assistance and government-backed loans is strong, and where buyers can build a stable, rewarding life.”
Oklahoma City lands in first place, with a median home price of $240,048, followed by Huntington-Ashland, WV-KY-OH; Lubbock, Texas; Baton Rouge; Pittsburgh; St. Louis; Jackson, MS; Indianapolis-Carmel-Greenwood, IN; Cincinnati; and Chicago-Naperville-Elgin, IL-IN.
What Makes a City Stand Out?
Two big qualities for the top 10 cities are an average housing payment at or below 30% of the local median household income and favorable environments for income, property and sales taxes. What this means in practice is:
- Oklahoma City’s median home price is $240,048, meaning monthly housing costs average only 28% of median household income; #6 St. Louis’ housing is just 30.5%.
- Chicago gets big points for affordability and robust loan support.
- Huntington has one of the lowest cost-of-living indexes in the nation; no state sales tax on groceries is a bonus.
- Lubbock has a robust use of FHA and USDA loans: over 40% of first-time buyers are leveraging government-backed financing and multiple local down payment assistance programs.
Loan Programs That Make Homeownership Easier
Many first-time home buyers hit a roadblock trying to come up with a sizable down payment. But a little research can save a lot of money, and there are several specialized loan programs with low or even zero down payment requirements, flexible credit standards, and reduced fees.
Some options are:
FHA Loans
- Backed by the Federal Housing Administration (FHA)
- Loans require as little as 3.5% down
- Known for their more lenient credit requirements
- Borrowers pay annual mortgage insurance premiums, but many qualify for assistance with closing costs
- A solid option for buyers with limited savings or less-than-perfect credit
HomeReady and Home Possible
- Offered by Fannie Mae and Freddie Mac, respectively
- Tailored to help low- to moderate-income buyers
- Require just 3% down
- Both allow contributions from parents or roommates and accept gifts or grants for down-payment funds
- Borrowers also benefit from reduced mortgage insurance costs and streamlined approval processes
VA Loans
- Available to eligible veterans, active-duty service members, and surviving spouses
- Offer 100% financing with no down payment and no private mortgage insurance
- Competitive interest rates make VA loans one of the most cost-effective paths to homeownership for those who qualify
USDA Loans
- Designed for buyers in designated rural and suburban areas
- USDA loans offer 100% financing with no down payment required
- Income limits are typically capped at 115% of the area’s median income
- Instead of mortgage insurance, borrowers pay a modest upfront guarantee fee and a low annual fee
- For eligible buyers, USDA loans are an excellent route to affordable homeownership in qualifying communities
Why These Cities Stand Out
1. Oklahoma City (average housing costs: below 30% of income)
Topping the list for affordability and livability, all seven counties in the Oklahoma City MSA keep a cost-of-living index of just 82.3. Strong FHA and VA loan activity, paired with low property taxes, keeps homeownership within reach for many buyers. And life in the OKC ain’t bad, with year-round sunshine, a vibrant downtown, and cultural districts like Bricktown and the Paseo Arts District.
2. Huntington-Ashland, WV-KY-OH (housing costs: 22%)
This tri-state metro boasts the lowest home prices and cost of living on the list. High shares of FHA, VA, and USDA loans point to a region rich in homebuyer support and eligible rural properties. Nature lovers will appreciate Appalachian hikes, Ohio River boating, and seasonal festivals.
3. Lubbock (housing costs: 27%)
With the highest FHA loan share on the list and no state income tax, Lubbock offers a friendly path to homeownership, and every county in the metro meets the affordability benchmark. Residents enjoy over 260 sunny days a year, Texas Tech football, and the great outdoor like Caprock Canyons.
4. Baton Rouge (housing costs: below 30%)
Strong USDA and FHA loan availability, coupled with the lowest property taxes on the list, meaning there’s room in the budget for jazz, gumbo, and beignets in the subtropical climate.
5. Pittsburgh (housing costs: 25%)
Steel City offers East Coast living without the price tag, with seven of eight counties in the MSA meeting the affordability standard. The city’s low income tax and rich cultural landscape add to its draw.
Rounding out the list are:
6. St. Louis: Lots to love here, with moderate home prices, ample USDA-eligible areas, a sub-90 cost-of-living index, low sales tax, thriving sports and arts scenes, and of course their toasted ravioli.
7. Jackson, MS: The lowest housing costs relative to income among all top 10 metros are supported by solid access to FHA, VA, and USDA loans, with mild winters keeping expenses manageable year-round.
8. Indianapolis-Carmel-Greenwood, IN: Low income tax and below-average cost of living with manageable housing costs for most counties mean more budget to explore the Indy 500 and the Monon Trail.
9. Cincinnati: Housing costs that push the 30% mark are balanced out by a below-average cost of living, solid loan accessibility, Ohio’s lower taxes, and family-friendly attractions like the zoo.
10. Chicago-Naperville-Elgin, IL-IN: Don’t be scared off by the highest property taxes and home prices on the list: over half the counties in this vast metro remain under the affordability threshold. Strong FHA and VA loan activity, lakefront access, and deep-dish dining don’t hurt.
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