It’s no secret that a home purchase in today’s market can be daunting. Prices are on the rise, competition is fierce, and it seems like affordable homes that meet your needs are hard to find. That’s where attainable housing comes in. What is attainable housing? It refers to homes that middle-income buyers—who may not qualify for income-based financial assistance—can realistically afford.
5 Things You Need to Know About Attainable Housing
- What is attainable housing?
- Are there any assistance programs available?
- How does attainable housing help in a competitive market?
- Are there any additional costs to budget for?
- What else can I do to make housing affordable?
1. What is attainable housing?
You’ve probably heard of affordable housing, which usually refers to programs for low-income buyers. So, what is attainable housing? It’s designed for middle-income households—people who earn too much to qualify for low-income assistance but not enough to comfortably afford expensive market-rate homes.
Attainable housing often includes:
- Smaller single-family homes
- Townhomes or condominiums
- Duplexes and triplexes
- Homes in up-and-coming neighborhoods
These properties are meant to be within reach for middle-class buyers, often through special financing programs, incentives, or new construction projects aimed at affordability.
Pro Tip: Some lenders may partner with builders to offer exclusive financing options for attainable housing. Ask your lender about their builder offerings—it may help you get more competitive rates.
2. Are there any assistance programs available?
The good news? You don’t have to do this alone. There are plenty of programs designed to help middle-income buyers get into a home. Here are a few worth looking into:
- First-time homebuyer programs: Many states and cities offer down payment assistance, lower interest rates, and grants for first-time buyers.
- Government-backed loans: Loans like FHA, VA, and USDA loans allow for lower down payments, making it easier to buy with less upfront cash.
- Employer homebuyer assistance: Some employers offer homebuyer benefits, especially for teachers, healthcare workers, and first responders.
- Local homebuyer incentives: Some cities provide special financing for middle-income buyers looking to purchase in revitalization areas.
These programs can make a huge difference, and the right mortgage team will make sure you’re aware of all the options available to you. Your real estate agent may also be able to help.
3. How does attainable housing help in a competitive market?
Attainable housing expands your options beyond traditional homes. Still, if you’ve been house hunting, you know it’s competitive no matter what you’re looking for. Homes in this price range often get multiple offers, so you’ll need to be strategic. Here’s how to improve your chances:
- Get pre-approved early. Sellers take buyers more seriously when they have a pre-approval letter from a lender. Attainable housing means typically lower costs, so you don’t need to be pre-approved for as high an amount to compete as you would for a traditional home.
- Expand your search area. Homes in up-and-coming neighborhoods or just outside major metro areas may be more affordable than homes in suburbs, while still offering more space than housing in popular neighborhoods like downtown areas.
- Be flexible on home features. If you’re willing to do a little cosmetic work, you might find a great home at a lower price. Renovation loans can help bridge the gap between what you can afford upfront and your ideal home features.
The key is to be prepared and move quickly when you find a home that fits your needs.
4. Are there any additional costs to budget for?
Attainable housing doesn’t necessarily entail any unique fees. However, as with any purchase, the price of the home itself isn’t the only cost you’ll be paying. Keep these four expenses in mind to strategically create your best budget:
- Property taxes and HOA fees. Even if the mortgage payment is affordable, these extra costs can add up. Make sure your budget has some wiggle room.
- Maintenance and repairs. Older homes might be cheaper upfront but could require expensive fixes. Luckily, a renovation mortgage could help you roll the repair costs into your home loan.
- Private mortgage insurance (PMI). If your down payment is less than 20%, you may need to pay PMI. This only applies to Conventional loans, however.
- Utility costs. Bigger homes or older properties can have higher energy bills. Attainable housing is typically smaller, so you could actually enjoy lower utility bills as a result.
5. What else can I do to make housing more affordable?
If buying a home still feels out of reach, there are creative ways to make it work.
- Consider a duplex or triplex. Buying a multi-unit property allows you to rent out part of the home, helping to cover your mortgage.
- Look into co-buying. Purchasing a home with family or friends can split the costs and make homeownership more affordable.
- Check for energy-efficient homes. Some homes qualify for energy-efficient mortgage programs, which can help lower utility costs over time.
The goal is to find a home that not only fits your budget now but remains affordable in the long run.
Key Takeaways: 4 Things to Love About Attainable Housing
What is attainable housing? After reading this blog, hopefully it’s a straightforward, affordable solution to reaching your homeownership goals. As you explore the right path to homeownership for you, keep these four benefits in mind:
- Attainable housing offers an affordable alternative to traditional homes
- There are more options than you might think when it comes to the types of homes that are considered “attainable housing”
- While your income level may disqualify you from financial aid reserved for affordable housing, attainable housing can still be paired with other programs for even more accessible pricing
- Compared to traditional suburban housing, attainable housing has an overall lower environmental footprint
Attainable housing is designed for middle-income households—people who earn too much to qualify for low-income assistance but not enough to comfortably afford expensive market-rate homes.
