How to Buy a House in West Virginia: A Homebuyer’s Guide
Updated: May 15, 2023
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The median home value in West Virginia is approximately $145K, which is a year-over-year increase of 11.9%. It’s worth noting that West Virginia is one of the least expensive places in the U.S. to buy a house, with home prices much lower than the national average of $358K.
Furthermore, homeowners in the state spend around $989 on their monthly mortgage payments. This is $170 cheaper than the national average. That said, how much you’ll pay in West Virginia may differ depending on various factors.
Understanding the homebuying process can help you buy a house in West Virginia without falling into deep debt. MoneyGeek’s guide covers the most important basics for homebuyers in the state, from choosing your ideal location to closing your loan.
Choose an Ideal Location
How much it costs to buy a house in West Virginia depends on several factors, including location. For instance, the average value of a home in Charleston is $157K, higher than the state average of $145K.
Aside from the cost, you should also consider other pertinent factors like neighborhood culture, cost of living and access to amenities when choosing an ideal location in West Virginia.
Calculate Mortgage Rates
When pursuing homeownership in West Virginia, it’s critical to understand the mortgage rates available to you. Different mortgage types have varying interest rates, which are determined based on several factors, like income, credit score and debt-to-income ratio. Shop around for quotes from multiple lenders to find the best mortgage rate for your unique profile.
Prepare Down Payment Requirements
Purchasing a home usually entails saving up for a down payment. Note that the amount you put down often depends on the mortgage option you choose. There are loan programs that allow you to put down as little as 3.5%, while others have no down payment requirements.
Get Pre-Approved for a Mortgage
A mortgage pre-approval can help you shop for houses in West Virginia. It indicates that a lender is willing to extend funds to you up to a certain amount, giving you more bargaining power when making a bid on a home.
You might confuse pre-approval with prequalification, but note that they are not the same. With a prequalification, you only receive an estimated loan amount because lenders don’t pull your credit report. A pre-approval, on the other hand, requires a more in-depth assessment, such as hard credit checks.
Conduct a Home Inspection
A home inspection is a crucial step that helps West Virginia homebuyers make a rational and informed decision. A thorough inspection conducted by a licensed professional can reveal the house’s current condition and the status of its mechanical systems. On average, the cost of a home inspection ranges between $300 and $500, paid by the homebuyer.
Close Your Mortgage Loan
Once you’ve reviewed the loan terms, you can proceed to close the deal. Keep in mind that the closing process has associated costs. There are cases where the seller can contribute to your closing costs, but your lender may limit the amount. Alternatively, you can seek closing cost assistance programs specific to West Virginia if you need help paying for the fees.
West Virginia Homebuying Details
When buying a house in West Virginia, it’s advisable to conduct thorough research on the best locations, explore different mortgage types and compare multiple lenders to find the best one for your needs. Seeking homebuyer assistance programs specific to the state is also essential to achieving homeownership.
The WVHDF has a Homeownership Program Loan that can finance up to 100% of the home purchase price. To qualify, you need to be a first-time homebuyer in West Virginia and meet income limits. You also need to participate in Homebuyer Education/Counseling on conventionally insured or uninsured loans.
You can pair a down payment and closing cost assistance loan from the WVHDF with the agency’s Homeownership or Movin’ Up programs. Note that the DPA loan is a 15-year, fixed-rate loan with a 2% interest rate.
If you are a moderate-income borrower who has outgrown your current residence, you can purchase a new home with the help of WVHDF’s Movin’ Up Program. You must meet the income and home price limits to qualify.
Frequently Asked Questions About Buying a Home in West Virginia
By reading MoneyGeek’s answers to some commonly asked questions, you can learn more about the homebuying process in West Virginia.
Some questions you need to ask yourself before buying a house in West Virginia include:
- How much down payment can you afford?
- What location is ideal for your needs and budget?
- What type of mortgage and mortgage rates are you eligible for?
West Virginia is one of the least expensive states to live in. That said, becoming a homeowner still comes with various financial responsibilities. Only consider homeownership if you are financially capable.
West Virginia homes have an average value of $145K, lower than the national average of $358K. Purchasing a house in the state may be a wise decision if you want a lower cost of living.
This will usually depend on the lender and mortgage type.
The property tax rate in West Virginia is 0.25% for Class I, 0.5% for Class II and 1% for Classes III and IV.
MoneyGeek’s research discovered that Beckley is one of the cheapest places to buy a house in West Virginia.
sources
- Census.gov. "Quick Facts: Beckley, West Virginia." Accessed October 24, 2022.
- International Association of Certified Home Inspectors. "Home Inspection Standards of Practice." Accessed October 23, 2022.
- National Association of Realtors. "Benefits of Working with a Real Estate Agent to Buy and Sell a Home." Accessed October 24, 2022.
- USDA. "Single Family Housing Direct Home Loans." Accessed October 24, 2022.
- West Virginia Tax Division. "Property Tax Rates." Accessed October 24, 2022.
- WVHDF. "Down Payment/Closing Cost Assistance." Accessed May 15, 2023.
- WVHDF. "Homeownership Program." Accessed October 24, 2022.
- WVHDF. "Movin’ Up Loan Program." Accessed October 24, 2022.
- Zillow. "Charleston Home Values." Accessed October 24, 2022.
- Zillow. "West Virginia Home Values." Accessed October 24, 2022.
- Zillow. "United States Home Values." Accessed October 24, 2022.