Neighbors Bank Reveals the 10 Best Metros for First-Time Homebuyers in 2025

Affordability, Quality of Life and Access to Low-Down Payment Loans Push Oklahoma City, Huntington, W.Va., and Lubbock, Texas, to the Top

COLUMBIA, Mo., July 10, 2025 /PRNewswire/ -- Neighbors Bank has released its 2025 ranking of the Top 10 Cities for First-Time Homebuyers, spotlighting the metros where new buyers can find the best balance of affordability, financing options and quality of life. The 2025 list prioritizes cities where buyers can stretch their budgets, access government-backed mortgage programs with low or no down payments and still enjoy vibrant communities, whether they're drawn to big-city culture or small-town charm.

"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."

With a median home price of $240,048, the Oklahoma City MSA comes in at No. 1, followed by Huntington-Ashland, W.Va.-Ky.-Ohio; Lubbock, Texas; Baton Rouge, La.; Pittsburgh, Pa.; St. Louis, Mo.-Ill.; Jackson, Miss.; Indianapolis-Carmel-Greenwood, Ind.; Cincinnati, Ohio-Ky.-Ind. and Chicago-Naperville-Elgin, Ill.-Ind.

What Makes These Cities Stand Out

Each of the top 10 metro areas had average housing payments at or below 30% of the local median household income, along with favorable income, property and sales tax environments.

For example, in Oklahoma City, with a median home price of $240,048, monthly housing costs average just 28% of median household income. In St. Louis, housing accounts for just 30.5% of household expenditures. Despite being a large metro, Chicago ranks strong for affordability and robust loan support.

Huntington benefits from one of the lowest cost-of-living indexes in the nation and no state sales tax on groceries. Lubbock stands out for its robust use of FHA and USDA loans, with over 40% of first-time buyers leveraging government-backed financing and multiple local down payment assistance programs available.

Low or No Down Payment Loan Programs Give First-Time Buyers an Upper Hand

For many first-time homebuyers, coming up with a sizable down payment is one of the biggest barriers to homeownership. There are a range of specialized loan programs that can help ease that burden with low or even zero down payment requirements, flexible credit standards and reduced fees. Options include:

FHA Loans – Backed by the Federal Housing Administration, FHA loans require as little as 3.5% down and are known for their more lenient credit requirements. While borrowers pay annual mortgage insurance premiums, many qualify for assistance with closing costs, making FHA 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, these programs require just 3% down and are tailored to help low- to moderate-income buyers. 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, making these programs attractive to both first-time and repeat buyers.

VA Loans – Available to eligible Veterans, active-duty service members, and surviving spouses, VA loans 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 apply, 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.

Top 10 Metros for First-Time Homebuyers in 2025

1. Oklahoma City
Oklahoma City tops the list for affordability and livability, with all seven counties in the MSA keeping housing costs below 30% of income and a cost-of-living index of just 82.3. Strong FHA and VA loan activity, paired with low property taxes makes homeownership within reach for many buyers. Residents enjoy year-round sunshine, a vibrant downtown and cultural districts like Bricktown and the Paseo Arts District.

2. Huntington-Ashland
This tri-state metro boasts the lowest home prices and cost of living on the list, with housing costs averaging just 22% of income. 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 rooted in regional pride.

3. Lubbock
With the highest FHA loan share on the list and no state income tax, Lubbock offers an especially friendly path to homeownership. Housing costs are just 27% of income, and every county in the metro meets the affordability benchmark. Residents enjoy over 260 sunny days a year, Texas Tech football and outdoor escapes like Caprock Canyons.

4. Baton Rouge
Baton Rouge couples strong USDA and FHA loan availability with the lowest property taxes on the list, all while keeping most counties under the 30% housing burden threshold. The city's subtropical climate, cultural vibrancy and Mississippi River charm create year-round appeal. Residents can enjoy jazz venues, riverwalks and local flavors like gumbo and beignets.

5. Pittsburgh
Pittsburgh offers East Coast living without the price tag, with home costs averaging just 25% of income and seven of eight counties in the MSA meeting the affordability standard. While USDA loan options are limited, the city's low income tax and rich cultural landscape add to its draw. From the Duquesne Incline to the Carnegie museums, residents enjoy four seasons of arts, sports and scenic trails.

6. St. Louis
This bi-state metro balances moderate home prices with ample USDA-eligible areas and a sub-90 cost-of-living index. While property taxes trend higher, Missouri's low sales tax and accessible housing stock help maintain affordability. With pro sports, riverfront recreation and a thriving arts scene, St. Louis offers something for every lifestyle.

7. Jackson
Jackson delivers the lowest housing costs relative to income among all top 10 metros, supported by solid access to FHA, VA and USDA loans. Despite a higher sales tax, its low cost of living and mild winters keep expenses manageable year-round. Rich in history and music, Jackson invites residents to explore state parks, civil rights landmarks and vibrant local art.

8. Indianapolis-Carmel-Greenwood
This metro combines a below-average cost of living with manageable housing costs for most counties, though buyers should be mindful of property tax rates and USDA loan scarcity. Low income tax and solid FHA/VA loan shares boost its accessibility. From the iconic Indy 500 to the Monon Trail, residents enjoy a dynamic mix of sports, arts and green space.

9. Cincinnati
While housing costs push the 30% mark, a below-average cost of living and solid loan accessibility keep Cincinnati competitive. Ohio's lower taxes offer relief, especially for budget-conscious buyers seeking value. The area blends urban and natural charm, with riverfront breweries, historic neighborhoods and family-friendly attractions like the zoo and Findlay Market.

10. Chicago-Naperville-Elgin
Despite 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 help first-time buyers find a foothold in the region. With lakefront access, world-class museums and deep-dish dining, Chicago offers unmatched cultural variety within reach for entry-level homeowners.

To read the full report, including methodology, visit: www.neighborsbank.com/learn/best-cities-for-first-time-buyers

About Neighbors Bank
Founded in Clarence, Missouri, and with additional offices in Columbia, Missouri, Neighbors Bank financed more than $675 million in loans in 2024 and is the #3 USDA lender in the nation, according to the 2025 United States Department of Agriculture rankings. The company's vision is to make homebuying affordable, accessible and achievable.

NeighborsBank.com | 800-220-0600 | 3621 Discovery Parkway, Suite 115, Columbia, MO 65201. Member FDIC. NMLS #491986 (nmlsconsumeraccess.org) Equal Opportunity Lender.

Media Contact:
Janice McDill
312-307-3134

SOURCE Neighbor's Bank