The housing market is holding firm with a median price of $425K, but February 2025 saw 17.8% of homes take a price cut, opening doors for homebuyers. Cities like Douglas, AZ, and Lumberton, NC, still offer homes under $200K, which makes it affordable for you.
You can also opt for foreclosure properties, which are priced at 15-20% lower than the market value. This means that you can save up to $63K! So hurry up! and find cheap homes for sale in your budget.
6 Steps to Find Cheap Houses to Buy
Here are 6 steps that can help you identify cheap houses to buy in 2025.
1. Explore Old Listings, Ghost Towns, Far Flung Areas
Targeting properties that have been listed for a long time is a great way to find cheap houses for sale. These sellers may be more inclined to lower the price due to a lack of offers. If you are flexible about where you live, you can consider buying in remote or less populated regions.
These areas are typically cheaper than those in urban cities. These areas tend to offer more affordable options compared to urban cities. For example, the typical home price in Hornell, NY, is $108,828, which makes it one of the cheapest places to buy a house in the US.
2. Get a Fixer Upper
Another method to discover affordable houses for sale is by investing in a fixer-upper. These homes need renovation or repairs, which is why they are priced lower than move-in-ready houses.
According to Porch, the average cost of a fixer-upper is $225,000, which is 45% less than the price of new homes. In parts of the U.S. Midwest, cheap old houses for sale are available for under $100,000.
3. For Sale By Owner Platforms
For Sale by Owner (FSBO) platforms let sellers list their properties without agents. This means sellers might offer lower prices since they don’t pay agent commissions. Typical agent commissions are 5-6%, split between the seller’s and buyer’s agents.
4. Check Out Foreclosure Websites
You can also get cheap foreclosed homes, which are stocked with banks and lenders. These properties are usually auctioned by bank and often sold at discounted prices.
However, one drawback is that these homes cannot be inspected before the auction, leaving repair costs unknown until after the purchase. Once you win the auction, you can inspect the property, but you must either accept it or walk away without negotiating the price.
5. Short Sales
A short sale happens when the lender agrees to sell the property for less than the remaining mortgage. This happens when the homeowner is facing financial problems and cannot keep up to date with mortgage payments.
Short sales can be a good opportunity for those who are looking for cheap houses to buy while also helping the homeowner avoid foreclosure.
6. Buy a As-Is Property
You can always opt for an as-is property. This makes them ideal for those seeking cheap houses for sale in America. These properties are sold cheaper because the seller won’t make repairs before you move in so it goes on your tab, and hence, the prices are less than the other marketed properties.
How to Finance an Affordable Home in the US?
Buying an inexpensive home isn’t just about finding the right listing, it’s about securing financing that works for you. Here are some of the best options to make homeownership more affordable.
1. Low-Cost Home Loans Through Government Programs
| Loan Type | Best For | Down Payment | Credit Flexibility |
| FHA Loans | First-time buyers | 3.5% | Accepts lower scores |
| VA Loans | Military families | 0% | Varies by lender |
| USDA Loans | Rural homebuyers | 0% | Moderate requirements |
These programs come with specific eligibility requirements. Be sure to research each program and consult a mortgage professional to determine if you qualify.
2. Down Payment Assistance
Many states and local programs provide down payment assistance and closing cost assistance to make homeownership more accessible. It helps to ease the burden of upfront home-buying costs, which helps buyers secure properties in the cheapest place to buy a house.
By providing grants or low-interest loans, these programs make homeownership more attainable, particularly for first-time buyers with limited funds searching for affordable homes for sale.
3. Seller Financing
Seller financing allows you to buy a house directly from the owner, who acts as your lender. This can be helpful if your credit score isn’t perfect.
While interest rates are generally higher, buyers may only need to put down 10% to 20% instead of the usual 20% or more. This is for those looking for affordable homes for sale in cost-effective locations. However, repayment terms are shorter, typically lasting between 3 and 7 years.
4. Rent to Own
- Lease with a Purchase Option – Rent-to-own agreements offer an alternative path to homeownership, allowing you to lease a property with the opportunity to buy it later. It is particularly useful when searching for cheap places to buy a house in the US but needing time to secure financing.
- Partial Rent Goes Toward Purchase – A portion of your monthly rent (typically 10% to 30%) is applied toward the home’s final purchase price, which makes it easier to own one of the cheapest houses in the USA over time.
- Upfront Option Fee – To secure your right to buy at a predetermined price, you may need to pay an initial fee of 1% to 5% of the home’s value. This approach can be beneficial when targeting properties.
- Flexible Lease Duration – Rent-to-own contracts typically range from 1 to 5 years, giving buyers time to prepare financially while securing a home.
Things to Consider When Buying a Cheap House
Securing a cheap house and financing are key steps, but beware of hidden costs that can come with such properties:
1. Renovation and Repair Costs
Affordable homes often require work. It’s crucial to understand that fixer-uppers, foreclosures, and “as-is” properties come with renovation needs. The cost of these repairs can vary depending on the scope of the project and the property’s condition.
2. Taxes and Insurance
Homeownership involves more than just a mortgage. You’ll also need to budget for property taxes, which are annual fees based on your home’s value and vary widely by state. Additionally, title insurance, a one-time fee, safeguards your ownership rights.
3. Closing Costs
Be prepared for closing costs, which are fees paid at the end of the home-buying process. These costs, including lender fees and transfer taxes, can add up. It’s common to expect closing costs to range from 2% to 5% of the purchase price.
Can You Get a Cheap Home in the US?
Yes, you can get the most affordable homes in America. However, start with a clear budget and get a mortgage pre-approval to stand out from the competition.
Keeping this in mind, it might be a good time to buy a house in America with inventory levels rising and homes staying longer on the market. Also, monitor current housing market trends to get the best deals.
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