-49. Rhode Island
- Foreclosure Rate: 1 in 2,984
- First-time Homebuyer Share: 67 percent (No. 1 highest)
- Median List Price: $279,900
For first-time homebuyers, Rhode Island is the best state to buy a home. Homebuyers face low foreclosure rates, along with an overall trend of declining new foreclosure filings nearly every month since May 2016. People shopping for their first home will find a strong presence of fellow first-time homebuyers as Rhode Island has the highest share of them in the mortgage market.
The median list price is above the national median, however, so getting an affordable home loan is important. Rhode Island Housing offers the Down Payment Assistance Program for first-time homebuyers. To be eligible, your annual household income must be less than $87,360 (for a one- to two-person household), the maximum loan limit is $424,100 and the property must be in one of six select communities.
Up Next: The Best and Worst Places to Live if You’re Trying to Save Money
Methodology: States were ranked according to three factors. 1) Foreclosure rates, which are based on the number of foreclosure actions to housing units as of March 2017, sourced from RealtyTrac; 2) Percentage share of mortgage market comprised by first-time homebuyers, sourced from FHFA; 3) Home median list price, based on March 2017 data, sourced from Zillow. These three factors contributed to a final score that determined each state’s ranking.