Complete Property Buying Guide — United States

Understanding the United States Property Market

The property market in United States offers diverse opportunities across its key markets. New York City, Los Angeles, Chicago, Houston, Phoenix, San Francisco, Miami, and Austin represent the main buying hotspots, with prices and demand varying significantly between regions.

The Federal Reserve sets the benchmark interest rate, which influences mortgage pricing across all lenders. Use our mortgage calculator to estimate repayments based on current rates.

Property Prices and Key Markets

Typical prices in United States range from $200,000 in the Midwest and South to $800,000+ in coastal cities and $1,500,000+ in New York and San Francisco.

The US offers 30-year fixed-rate mortgages — a product rare in most other countries. This gives buyers extraordinary payment certainty over three decades. The US also has a unique government-backed mortgage system through Fannie Mae, Freddie Mac, and Ginnie Mae, which buy mortgages from lenders and package them as mortgage-backed securities, enabling widespread 30-year fixed lending. Property taxes are an ongoing annual cost (typically 0.5-2.5% of assessed value) that significantly affects affordability

Setting Your Budget

Beyond the purchase price, you need to budget for transaction costs that typically add 3-6% including title insurance, attorney/escrow fees, appraisal, inspection, recording fees, and transfer tax (if applicable). Some costs may be negotiated to be paid by the seller to the total. Your deposit requirement is 3-20%, though this varies by lender and your buyer profile.

Varies by state — some states have no transfer tax (e.g. Texas), while others charge 0.1% to 2.5%. Recording fees, title insurance, and other closing costs add to the total

Read our buying costs guide for a detailed breakdown of all purchase-related expenses.

Getting Finance Approved

Mortgage terms in United States extend up to 15 or 30-year fixed rates are standard. Adjustable-rate mortgages (ARMs) offer lower initial rates fixed for 5, 7, or 10 years before adjusting annually. Lenders typically offer up to 97% for conventional loans, 96.5% for FHA, 100% for VA and USDA loans. Private Mortgage Insurance (PMI) required for conventional loans above 80% LTV loan-to-value, meaning you need at least the remainder as a deposit.

Compare rates across major lenders including United Wholesale Mortgage, Rocket Mortgage (Quicken Loans), Wells Fargo, JPMorgan Chase, Bank of America, loanDepot, and thousands of local banks, credit unions, and mortgage brokers. Our mortgage types guide explains the differences between available loan products.

Finding and Securing Property

Working with a qualified real estate agent or REALTOR® is the standard approach in United States. Research local areas thoroughly, attend viewings, and consider factors like transport links, amenities, and future development plans.

Legal Process and Due Diligence

Property transfers in United States require a qualified real estate attorney (required in some states, optional in others) to handle the legal process. The buyer submits a purchase offer, which becomes a binding contract once the seller accepts. Earnest money (typically 1-3% of the purchase price) is deposited in escrow. The contract includes contingencies for financing, inspection, and appraisal. During the contingency period, the buyer arranges the mortgage and conducts inspections. At closing, a title company or attorney handles document signing, fund disbursement, and title recording. The process typically takes 30-60 days.

Professional home inspections are standard and highly recommended. Most contracts include an inspection contingency allowing the buyer to negotiate repairs or withdraw. Inspections cover structure, roof, plumbing, electrical, HVAC, and more. Additional specialised inspections may be needed for radon, termites, mould, lead paint (pre-1978 homes), and septic systems. The appraisal is required by the lender and is separate from the inspection

See our property inspection checklist for what to check before committing.

Government Support for Buyers

FHA loans allow as little as 3.5% down payment with government-backed mortgage insurance, aimed at first-time and lower-income buyers. VA loans offer 0% down payment for military veterans and service members. USDA loans provide 0% down payment for rural properties. Conventional loans through Fannie Mae/Freddie Mac allow 3-5% down. First-time buyers can access tax-advantaged savings through state-run programmes and the mortgage interest tax deduction on loans up to $750,000

Check our government grants guide for the latest programmes and eligibility criteria.

Next Steps

Use our mortgage calculator to model different scenarios, browse United States FAQs for quick answers, or read our complete mortgage guide for detailed information on rates and lenders.