Some may perceive the search for affordable housing in the Los Angeles area as an unattainable goal, given the area’s notoriously high real estate costs. Nonetheless, it is still possible for homebuyers to uncover hidden treasures containing properties for less than $100,000 with some diligence and investigation.
These alternatives provide a chance to own a home in one of the most desirable regions of the country, albeit at the expense of potential location or property size compromises.
Top 5 Best Cities Near Los Angeles
In 2024, you can still find a home for less than $100,000 in the following five cities near Los Angeles:
1. San Bernardino, California
Located approximately sixty miles east of Los Angeles, San Bernardino, California, provides a reasonably priced blend of urban conveniences and natural splendor. It remains feasible to locate residences priced below $100,000, especially in more affordable localities, despite the consistent upward trend in property values.
San Bernardino presents convenient access to the allure of Los Angeles, the surrounding mountains, and the desert, owing to its proximity to major thoroughfares and public transportation alternatives.
2. California’s Riverside:
Heritage-rich landscapes, cultural landmarks, and picturesque surroundings distinguish Riverside, a city situated to the east of Los Angeles, which is a multicultural center.
There are still areas where properties can be purchased for less than $100,000, even though home prices have been rising, especially in desirable communities. Those willing to put forth the necessary effort may find Riverside to be an affordable entry point into Southern California living, although they may need to search for opportunities to renovate or consider manufactured homes.
3. California’s Victorville:
Located within commuting distance of Los Angeles, Victorville, situated in the High Desert region of San Bernardino County, provides a more suburban way of life. Victorville is an appealing destination for those on a budget, even though it may require some effort to reach, especially during peak travel hours.
Parks, retail centers, and recreational opportunities are among the numerous amenities that the city provides. Precious purchasers continue to be drawn to Victorville due to the comparatively modest cost of housing in contrast to the majority of Southern California.
4. Hemet, California
San Jacinto Valley-based Hemet, California, provides a more affordable housing market and a more leisurely tempo in comparison to the surrounding coastal communities. It remains possible to locate residences for less than $100,000, especially in age-restricted communities or areas in need of renovation, even though prices have increased in recent years.
Those in search of a more laid-back way of life will find Hemet attractive due to its convenient proximity to outdoor pursuits including hiking, watercraft, and fishing.
5. Barstow, California
Situated along the illustrious Route 66, Barstow, California presents an amalgamation of rustic desert terrains and the allure of a small community.
Barstow offers affordable housing alternatives for individuals inclined to travel beyond the urban core of Los Angeles, although it may not be the most opulent option. In particular, manufactured residences and fixer-uppers are available for less than $100,000.
Barstow provides retail establishments, dining establishments, and easy access to points of interest such as the Mojave National Preserve, notwithstanding its remote vicinity.
Tips Regarding the Purchase of a Home
In general, the advice is largely the same whether you are purchasing a home for less than $100,000 or more than $1,000,000. Utilizing these guidelines will facilitate a smoother and more emotional journey.
Develop a Budget
Performing an exhaustive inventory of your yearly expenditures, retirement contributions, and other consistent savings contributions is imperative. Housing and utility expenses that are currently incurred should be excluded.
Your annual income should be reduced by that amount. It indicates how much money is available to purchase a home’s utilities, repairs, maintenance, principal, and interest, in addition to property taxes and homeowners insurance.
Additional property insurance for natural disasters such as earthquakes, floods, and hurricanes, private mortgage insurance, and homeowners association dues may also be components of your budget.
Examine Rates for Mortgages
To determine how much house one can afford, the following step is to acquire a broad understanding of current mortgage rates. Please note that interest rates are subject to frequent changes. Additionally, the advertised rates are exclusively available to highly qualified purchasers who possess outstanding credit scores, substantial down payments, and low debt-to-income ratios.
Make Use of a Mortgage Calculator
Using a down payment, interest rate, and purchase price in conjunction with a mortgage calculator, it is possible to determine the monthly principal and interest paid. A preliminary assessment of one’s financial capacity may yield a useful indication.
Pre-approval Acquire
A fast estimate of your potential home loan eligibility is available on the websites of some lenders. A lender will examine a subset of your financial documents as part of the pre-approval procedure, as opposed to relying solely on your affirmation.
A limited number of lenders provide pre-underwriting, the most comprehensive procedure that provides the highest level of assurance that you will be able to obtain the desired loan once you locate the ideal property.
Regardless of the circumstance, the lender must still sanction the property purchase. Numerous lenders should ideally preapprove your application so that you may select the most competitive one.
Some lending institutions potentially declining small-dollar mortgages is a potential issue. You will, however, find an abundance of mortgage lenders willing to do so, as the United States is home to thousands of such institutions.
Locate a Property Broker
A thorough home search can commence once you have received approval from at least one lender. Conduct interviews with a handful of agents who possess extensive resources and connections in the area of interest. Succeed in selecting a home, negotiating an offer, and assessing the outcomes of a professional home inspection with the assistance of a reliable individual who will look out for your best interests.
Be Ready To Act
Strategy to schedule a tour of the property on the same day your agent informs you of its impending or newly listed status. Furthermore, ensure that you move swiftly to submit a competitive offer upon discovering a property that piques your interest. Don’t feel obligated to choose a property until you’re prepared, however, if your moving date is not strictly adhered to. A home sale and relocation are neither simple nor inexpensive.
