[{"data":1,"prerenderedAt":446},["ShallowReactive",2],{"site-navigation":3,"jd-power-global":82,"U3155RynEB":92,"e39XklTYXt":108,"disclosure-default":131,"spanish-language-disclosure":138,"J1MihCHS9H":145,"SEeE09FmpH":161,"tag-budget-planning":189,"tag-articles-budget-planning":194},{"_path":4,"_dir":5,"_draft":6,"_partial":6,"_locale":7,"bottomSiteNavigationLinks":8,"mainSiteNavigationLinks":28,"footerSiteNavigationLinks":34,"socialLinks":53,"headerNavigation":64,"_id":77,"_type":78,"title":79,"_source":80,"_file":81,"_extension":78},"/settings/site-navigation","settings",false,"",[9,12,15,18,21,24],{"text":10,"to":11},"Calculators","/calculators",{"text":13,"to":14},"Rates","/rates",{"text":16,"to":17},"Buy","/home-buying",{"text":19,"to":20},"Refinance","/refinancing",{"hideFromSiteMap":6,"text":22,"to":23},"Equity","/equity",{"text":25,"to":26,"hideFromSiteMap":27},"Education & Tools","/education-and-tools",true,[29,30,31,32,33],{"text":10,"to":11},{"text":13,"to":14},{"text":16,"to":17},{"text":19,"to":20},{"text":22,"to":23},[35,38,41,44,47,50],{"text":36,"to":37},"Citi.com","https://www.citi.com",{"text":39,"to":40},"Sitemap","/sitemap",{"text":42,"to":43},"Accessibility","https://online.citi.com/US/JRS/portal/template.do?ID=Accessibility",{"text":45,"to":46},"Privacy Policy","https://online.citi.com/US/JRS/portal/template.do?ID=Privacy",{"text":48,"to":49},"Terms & Conditions","https://online.citi.com/US/nga/termsdisclaimer/termsdisclaimerhome",{"text":51,"to":52},"Do Not Sell or Share My Personal Information","https://online.citi.com/US/ag/dataprivacyhub/cpra/home",[54,57,61],{"to":55,"text":56,"icon":56},"https://www.facebook.com/citibank","Facebook",{"to":58,"text":59,"icon":60},"https://x.com/Citibank","X, formally known as Twitter","X",{"to":62,"text":63,"icon":63},"https://www.youtube.com/citi","YouTube",{"utilityNavigation":65},[66,72],{"link":67,"variant":70,"icon":71},{"text":68,"to":69},"Apply now","#dragonflyapp","primary",null,{"link":73,"variant":76},{"text":74,"to":75},"{{tracking_code}}","tel:{{tracking_code}}","primary-outline","content:settings:site-navigation.json","json","Site Navigation","content","settings/site-navigation.json",{"title":83,"subtext":7,"portraitImage":84,"imageAlt":85,"imageWidth":86,"background":87,"borderRadius":88,"maxWidth":89,"paddingTopBottom":90,"paddingLeftRight":90,"gap":90,"variant":91},"Citi is #1 in Customer Satisfaction with Mortgage Origination - ***[J.D. Power 2025 Award](https://www.jdpower.com/business/awards)***","/media/jdpower-trophy.png","J.D. Power 2025 Trophy",48,"var(--brand-default)",0,650,16,"default",{"data":93,"body":95,"toc":105},{"title":7,"description":94},"Citi is #1 in Customer Satisfaction with Mortgage Origination - J.D. Power",{"type":96,"children":97},"root",[98],{"type":99,"tag":100,"props":101,"children":102},"element","p",{},[103],{"type":104,"value":94},"text",{"title":7,"searchDepth":106,"depth":106,"links":107},2,[],{"data":109,"body":111,"toc":129},{"title":7,"description":110},"For J.D. Power 2025 award information, visit jdpower.com/awards.",{"type":96,"children":112},[113],{"type":99,"tag":100,"props":114,"children":115},{},[116,118,127],{"type":104,"value":117},"For J.D. Power 2025 award information, visit ",{"type":99,"tag":119,"props":120,"children":124},"a",{"href":121,"rel":122},"https://www.jdpower.com/business/awards",[123],"nofollow",[125],{"type":104,"value":126},"jdpower.com/awards",{"type":104,"value":128},".",{"title":7,"searchDepth":106,"depth":106,"links":130},[],{"_path":132,"_dir":133,"_draft":6,"_partial":6,"_locale":7,"slug":91,"content":134,"_id":135,"_type":78,"title":136,"_source":80,"_file":137,"_extension":78},"/disclosures/default","disclosures","This page provides general information regarding mortgages or home equity lines of credit. Citi's offerings and lending guidelines may be different. This content is for educational purposes. It is not intended to provide legal, investment, tax, or financial advice and is not a substitute for professional advice. For advice about your specific circumstances, you should consult a mortgage professional and refer to the information and disclosures provided to you by the lender you choose regarding its products and services.\n\nTerms, conditions and fees for accounts, programs, products and services are subject to change without notice. This is not a commitment to lend. All loans and offers are subject to standard underwriting guidelines and required conditions. This offer contains information about U.S. domestic financial services provided by Citibank, N.A. and is intended for use domestically in the U.S. Certain restrictions may apply on all programs.","content:disclosures:default.json","Default","disclosures/default.json",{"_path":139,"_dir":133,"_draft":6,"_partial":6,"_locale":7,"content":140,"slug":141,"_id":142,"_type":78,"title":143,"_source":80,"_file":144,"_extension":78},"/disclosures/spanish-language-disclosure","\u003Csup>†\u003C/sup>Please be advised that verbal and written communication from Citi may be in English as we may not be able to provide servicing related communications in all languages. These communications may include, but are not limited to, account agreements, statements and disclosures, change in terms or fees; or any servicing of your account. If you need assistance in a language other than English, please contact us as we have language services that may be of assistance to you.\n\n\u003Cspan lang=\"es\">Por favor, tenga en cuenta que las comunicaciones verbales y escritas de Citi podrían estar únicamente en inglés, ya que, tal vez, no podamos proporcionar comunicaciones relacionadas con los servicios en todos los idiomas. Estas comunicaciones podrían incluir, entre otras, contratos, divulgaciones y estados de cuenta, cambios en los términos o en los cargos, así como cualquier documento de mantenimiento de su cuenta. Si necesita ayuda en un idioma distinto al inglés, por favor, comuníquese con nosotros, ya que tenemos servicios de idiomas que podrían serle útiles.\u003C/span>","spanish-language-disclosure","content:disclosures:spanish-language-disclosure.json","Spanish Language Disclosure","disclosures/spanish-language-disclosure.json",{"data":146,"body":148,"toc":159},{"title":7,"description":147},"This page provides general information regarding mortgages or home equity lines of credit. Citi's offerings and lending guidelines may be different. This content is for educational purposes. It is not intended to provide legal, investment, tax, or financial advice and is not a substitute for professional advice. For advice about your specific circumstances, you should consult a mortgage professional and refer to the information and disclosures provided to you by the lender you choose regarding its products and services.",{"type":96,"children":149},[150,154],{"type":99,"tag":100,"props":151,"children":152},{},[153],{"type":104,"value":147},{"type":99,"tag":100,"props":155,"children":156},{},[157],{"type":104,"value":158},"Terms, conditions and fees for accounts, programs, products and services are subject to change without notice. This is not a commitment to lend. All loans and offers are subject to standard underwriting guidelines and required conditions. This offer contains information about U.S. domestic financial services provided by Citibank, N.A. and is intended for use domestically in the U.S. Certain restrictions may apply on all programs.",{"title":7,"searchDepth":106,"depth":106,"links":160},[],{"data":162,"body":164,"toc":187},{"title":7,"description":163},"†Please be advised that verbal and written communication from Citi may be in English as we may not be able to provide servicing related communications in all languages. These communications may include, but are not limited to, account agreements, statements and disclosures, change in terms or fees; or any servicing of your account. If you need assistance in a language other than English, please contact us as we have language services that may be of assistance to you.",{"type":96,"children":165},[166,177],{"type":99,"tag":100,"props":167,"children":168},{},[169,175],{"type":99,"tag":170,"props":171,"children":172},"sup",{},[173],{"type":104,"value":174},"†",{"type":104,"value":176},"Please be advised that verbal and written communication from Citi may be in English as we may not be able to provide servicing related communications in all languages. These communications may include, but are not limited to, account agreements, statements and disclosures, change in terms or fees; or any servicing of your account. If you need assistance in a language other than English, please contact us as we have language services that may be of assistance to you.",{"type":99,"tag":100,"props":178,"children":179},{},[180],{"type":99,"tag":181,"props":182,"children":184},"span",{"lang":183},"es",[185],{"type":104,"value":186},"Por favor, tenga en cuenta que las comunicaciones verbales y escritas de Citi podrían estar únicamente en inglés, ya que, tal vez, no podamos proporcionar comunicaciones relacionadas con los servicios en todos los idiomas. Estas comunicaciones podrían incluir, entre otras, contratos, divulgaciones y estados de cuenta, cambios en los términos o en los cargos, así como cualquier documento de mantenimiento de su cuenta. Si necesita ayuda en un idioma distinto al inglés, por favor, comuníquese con nosotros, ya que tenemos servicios de idiomas que podrían serle útiles.",{"title":7,"searchDepth":106,"depth":106,"links":188},[],{"label":190,"slug":191,"seo":192},"Budget Planning","budget-planning",{"description":193},"Learn more about budget planning with helpful articles, tools, and guides to support your homeownership journey.",[195,256,290,352,398],{"_path":196,"_dir":197,"_draft":6,"_partial":6,"_locale":7,"readTime":198,"l1":197,"linkNav":199,"heroMedia":203,"teaserImage":206,"slug":208,"sections":209,"date":231,"subheadline":232,"headline":233,"isFeatured":6,"tags":234,"link":236,"seo":239,"hasSectionNavigation":27,"_id":242,"_type":78,"title":243,"_source":80,"_file":244,"_extension":78,"tagsDetails":245},"/articles/home-buying/how-to-buy-a-house-with-low-income","home-buying",3,{"introText":200,"text":201,"to":202},"Ready for the next step?","Connect with a Citi Specialist","/contact",{"landscape":204,"portrait":205},"/media/how-to-buy-a-house-w-low-income-mobile-768x512.jpg","/media/how-to-buy-a-house-w-low-income-desktop-520x638.jpg",{"src":207},"/media/how-to-buy-a-house-w-low-income-teaser-500x500.jpg","how-to-buy-a-house-with-low-income",[210,213,216,219,222,225,228],{"title":211,"content":212},"Is it possible to buy a home on a low income?","You don’t need a high salary to become a homeowner. Lenders look at more than just paychecks when reviewing your application, and  there are low-income mortgage programs and assistance options designed specifically for buyers with limited earnings.\n\nYour approval odds improve when you strengthen factors like your [debt-to-income (DTI)](/home-buying/articles/what-is-a-good-debt-to-income-ratio/) ratio, [credit score](/home-buying/articles/what-credit-score-do-you-need-to-buy-a-house/), employment history and savings. Strengthening these areas can improve your approval odds, and many buyers successfully combine a [government-backed loan](/home-buying/articles/government-backed-home-loans/) with down payment assistance to make their first home both attainable and affordable.",{"title":214,"content":215},"Loan programs that help low-income buyers","Low-income mortgage loans have unique requirements and benefits. Here are some of the most widely used:\n\n::inline-table{tableLayout=\"waffle\" :headers='[{\"value\":\"Loan Program\"},{\"value\":\"Best For\"},{\"value\":\"Key Benefits\"}]' :rows='[{\"column\":{\"valueOne\":\"FHA Loans\",\"valueTwo\":\"Buyers with lower credit scores (580+ for 3.5% down; 500-579 with 10% down) or limited savings\",\"valueThree\":\"Down payments as low as 3.5%. Flexible credit requirements. Allows higher debt-to-income ratios.\"}},{\"column\":{\"valueOne\":\"USDA Loans\",\"valueTwo\":\"Buyers in eligible rural/suburban areas with income within USDA limits\",\"valueThree\":\"No down payment. Competitive fixed rates. May cover closing costs.\"}},{\"column\":{\"valueOne\":\"VA Loans\",\"valueTwo\":\"Eligible veterans, active-duty members or qualifying surviving spouses \",\"valueThree\":\"No down payment or private mortgage insurance required. Lower funding fees for some borrowers.\"}},{\"column\":{\"valueOne\":\"State/Local Down Payment Assistance\",\"valueTwo\":\"First-time or income-qualified buyers (limits vary by program)\",\"valueThree\":\"Grants or forgivable loans to cover down payment and/or closing costs\"}}]'}\n::",{"title":217,"content":218},"Understanding down payment assistance programs ","If covering the [down payment](/tags/down-payments/) or [closing costs](/home-buying/articles/closing-costs/) is holding you back, down payment assistance programs (DPAs) can help bridge the gap. DPAs provide funds either as grants or low-interest loans to help cover these costs. They’re offered through state and local governments, nonprofits and even some employers.\n\nEligibility requirements vary, but many programs are designed for:\n\n* **First-time home buyers**: A first-time home buyer is often defined as someone who hasn’t owned a home in the past three years. Our [first-time home buyer guide](/home-buying/articles/first-time-home-buyer/) looks in-depth at who qualifies, loan options, tips, and more.\n* **Buyers within certain income limits**: These limits depend on your location and household size, and may be higher than you might expect.\n* **Homes under a purchase price cap:** This will typically be based on the median home price in your area.\n\nWhere to start:\n\n* Visit your state housing agency’s website for program listings and requirements.\n* Check HUD’s network of [local housing counseling agencies](https://www.hud.gov/i_want_to/talk_to_a_housing_counselor). If you’re already working with a lender, ask whether they partner with any down payment assistance providers. They may be able to connect you directly during pre-approval.\n\n::callout{body=\"Some down payment assistance programs have income limits well above what most consider “low income.” You might qualify even if you earn close to your area’s median income.\" :media='{\"landscape\":\"/media/article-callout-landscape.png\",\"portrait\":\"/media/article-callout-portrait.jpg\"}'}\n::",{"title":220,"content":221},"Tips to strengthen your mortgage application","A strong application can help you secure a better interest rate and lower monthly payments —even if you qualify for a low-income home loan. Here are some ways you can set yourself up for success:\n\n* **Boost your [credit score](/home-buying/articles/what-credit-score-do-you-need-to-buy-a-house/)**:  Pay down revolving balances, fix errors on your credit report and review our guide on [buying a house with bad credit](/home-loans/articles/how-to-buy-a-house-with-bad-credit/).\n* **Lower your debt-to-income ratio:** Eliminating even small debts can make a big difference—learn more about **[how your debt-to-income ratio affects mortgage approval](/home-buying/articles/what-is-a-good-debt-to-income-ratio/)** to understand where you stand and how to improve it.\n* **Consider a co-borrower**: Adding another trusted person with steady income can increase your buying power.\n* **Show income stability:** Maintain steady employment and gather proof like W-2s, pay stubs and tax returns before applying.",{"title":223,"content":224},"Other costs to prepare for","Strong finances at the time of purchase are just part of the equation. Planning for ongoing and upfront expenses is equally important. Here are common costs to budget for:\n\n::content-table{headline=\"Additional costs of buying a home\" body=\"Be sure to include these in your budget.\" :tableData='[{\"row\":[{\"column\":\"Cost\"},{\"column\":\"Estimated Range\"}]},{\"row\":[{\"column\":\"Home inspection \"},{\"column\":\"$300-$500\"}]},{\"row\":[{\"column\":\"Appraisal \"},{\"column\":\"$300-$600\"}]},{\"row\":[{\"column\":\"Homeowners insurance \"},{\"column\":\"$1,000-$1,500/year\"}]},{\"row\":[{\"column\":\"Closing costs \"},{\"column\":\"2-5% of purchase price\"}]}]'}\n::\n\nWant to better understand closing costs? Check out our [guide on closing costs](/home-buying/articles/closing-costs/)—what they include,  how they’re calculated and ways to reduce them.",{"title":226,"content":227},"Common mistakes to avoid","Even the best low-income mortgage program can’t protect you from costly missteps. Here’s what to watch for:\n\n**Skipping [pre-approval](/home-loans/articles/how-to-get-pre-approved/)**\n\nWithout it, you may not know your true budget. Use our [Mortgage Calculator](/calculators/monthly/) to get a sense of what you might qualify for.\n\n**Overestimating your budget**\n\nJust because you’re approved for a certain amount doesn’t mean you should spend it all. Aim for a [monthly payment](/calculators/monthly/) that still leaves room for savings and emergencies. Our [Affordability Calculator](/calculators/affordability/) is a great place to start.\n\n**Ignoring assistance programs**\n\nMany buyers miss out on thousands in grants or low-interest loans simply because they don’t research what’s available.\n\n**Overlooking ongoing costs**\n\nFactor in property taxes, insurance, HOA fees and maintenance before you buy.\n\n**Rushing the process**\n\nTaking time to improve your credit, pay down debt and save can help you get better terms and more long-term stability.",{"title":229,"hideTitle":27,"content":230},"Buying a home with a low income FAQs","\n\n::faq{headline=\"Buying a home with a low income FAQs\" :faqs='[{\"question\":\"Can I buy a house with no down payment?\",\"answer\":\"Yes. Certain loan programs, like USDA loans (for rural and some suburban areas) and VA loans (for qualifying service members, veterans and some surviving spouses) offer 100% financing with no down payment required.\"},{\"question\":\"What is the minimum income required to qualify for a mortgage?\",\"answer\":\"There’s no set income threshold. Lenders look at your overall financial picture, including your debt-to-income (DTI) ratio, credit score and employment history, to determine how much you can afford to borrow.\"},{\"question\":\"What credit score do I need for a low-income loan?\",\"answer\":\"FHA loans accept credit scores as low as 580 with a 3.5% down payment. Some lenders may approve lower scores with a higher down payment or additional compensating factors.\"},{\"question\":\"Are there programs that help with down payments?\",\"answer\":\"Yes—down payment assistance programs from state and local agencies, nonprofits and even some employers offer grants or low-interest loans to help cover part or all of your down payment and sometimes closing costs.\"},{\"question\":\"Can I get a co-signer if I don’t qualify alone?\",\"answer\":\"Yes. A co-signer (or co-borrower) with stronger finances can help you meet income or credit requirements. Just remember, they’re equally responsible for the loan.\"}]'}\n::","2025-09-08T13:31:00.000Z","[Buying a home](/home-buying/) on a modest income can feel daunting, but it’s far from impossible. This guide covers the most common home loans for low-income buyers, with tips to boost your eligibility and a range of resources—whether you’re a first-time home buyer navigating the process or a returning buyer ready to invest again.","How to buy a house with low income",[197,235,191],"loan-types",{"introText":237,"body":238,"text":201,"to":202},"Need help navigating low-income loan options?","Let’s talk it through together.",{"title":240,"description":241},"Buying Your Home On a Low Income | Citi Mortgage","Learn how to buy a home with low income, including loan options, programs, and tips that can help make homeownership possible.","content:articles:home-buying:how-to-buy-a-house-with-low-income.json","How To Buy A House With Low Income","articles/home-buying/how-to-buy-a-house-with-low-income.json",[246,248,252],{"label":190,"slug":191,"seo":247},{"description":193},{"label":249,"slug":235,"seo":250},"Loan Types",{"description":251},"Explore resources about loan types—including types, requirements, and how to choose the right mortgage option.",{"label":253,"slug":197,"seo":254},"Home Buying",{"description":255},"Learn more about home buying with helpful articles, tools, and guides to support your homeownership journey.",{"_path":257,"_dir":197,"_draft":6,"_partial":6,"_locale":7,"readTime":258,"l1":197,"linkNav":259,"heroMedia":260,"teaserImage":263,"outro":7,"slug":265,"sections":266,"date":276,"subheadline":277,"headline":278,"isFeatured":6,"tags":279,"link":280,"seo":283,"hasSectionNavigation":27,"_id":286,"_type":78,"title":287,"_source":80,"_file":288,"_extension":78,"tagsDetails":289},"/articles/home-buying/second-home",5,{"introText":200,"text":201,"to":202},{"landscape":261,"portrait":262},"/media/article-how-to-buy-a-second-home_-mobile-768x512.jpg","/media/article-how-to-buy-a-second-home_-desktop-520x638.jpg",{"src":264},"/media/article-how-to-buy-a-second-home_-teaser-500x500.jpg","second-home",[267,270,273],{"title":268,"content":269},"Reasons to buy a second home","Each type of property not only serves a different purpose but also comes with distinct financing options, tax implications and insurance requirements. Today, we’re talking about buying a second home, so let’s dive into the details! There are plenty of reasons people buy second homes. Perhaps rentals are sparse in your favorite vacation spot. Or, maybe it’s a fixer-upper to sell down the line. Whatever’s driving your interest, here are some common reasons people opt for purchasing a second house.\n\n### A private vacation sanctuary\n\nSay “ahhh.” A second residence can become your own personal retreat—a place to relax and recharge with family and friends (or solo if that’s your jam). Whether it’s in the mountains, lakeside or along the coastline, buying a second home can be your escape from weekday stresses or just a welcome change of scenery in your favorite second city. \n\n### Long-term wealth creation\n\nLooking to build some generational wealth? All in all, real estate is considered a pretty stable long-term investment which is why buying a second home can be a valuable addition to your investment portfolio.\n\n### An equity enhancement\n\nInvesting in a second home is a nice way to build equity. Each mortgage payment you make increases your ownership stake while improvements and maintenance enhance the property's value. This increase in value builds up your equity, which in turn builds your overall wealth.\n\n### Tax breaks\n\nWho doesn't love a good tax break? Chat with your tax advisor to determine whether there are tax benefits for your unique situation.",{"title":271,"content":272},"How to buy a second home","If you‘re an experienced homeowner, you’ve probably gleaned plenty of tips for buying a home the first time around, but buying a second home comes with its own set of nice-to-know tips and tricks.\n\n### Determine the purpose of the property\n\nThe purpose of the property will influence the [types of home loan programs](/home-loans) you're eligible for and the terms you might receive. Here’s how different purposes can affect your loan options:\n\n* **Vacation home**: If you're buying a second home primarily for personal use as a vacation spot, you can typically apply for a conventional mortgage similar to your primary residence mortgage. Lenders will look for a good credit score, a stable income and a reasonable debt-to-income ratio. Keep in mind that the terms for a second home might be different from those for your [primary residence](/home-buying/articles/primary-residence). It's a good idea to have a conversation with your lender to clearly understand these differences.\n* **Investment property**: When you're looking to buy a home that you plan to use as a rental or investment property, the loan requirements might be a bit different. Since you won't be living in the property yourself, lenders often view these situations as higher risk. As a result, they might ask for different terms to offset this risk. This could include a higher down payment, or a different [interest rate](/rates) compared to what you might get for a property where you plan to live.\n* **Mixed-use properties**: If the property is mixed-use, meaning part of it is residential and part is commercial, you might need a specialized loan that can handle both aspects. These loans can be more complex and might come with different terms and eligibility requirements.\n\n### Consider all the costs of buying a second home\n\n* **[Down payment](/home-buying/articles/how-much-down-payment-for-a-house)**: The down payment amount for a second home may differ from a primary residence, so remember to specify the use of the property when you chat with your mortgage lender, and they’ll be able to explain these differences to you.\n* **Tax implications**: Speak to your tax or financial advisor whether owning a second home can offer any potential tax benefits.  \n* **Insurance and maintenance**: These costs can be higher for a second home, especially if it’s located in a high-risk area, like a flood zone or if it's vacant for parts of the year.\n\n### Decide how you’ll finance your second home\n\nFinancing a second home can involve some strategies that are less commonly used for purchasing a primary residence. Here are a few unique methods to consider when buying a second house:\n\n* **[Home equity line of credit](/home-loans/heloc)**: If you have significant equity in your primary residence, you can take out a home equity line of credit (HELOC) to finance the purchase of a second home. This can be a convenient option because it potentially offers lower interest rates. \n* **[Cash-out refinance](/refinancing/articles/cash-out)**: This involves refinancing your primary home for a higher amount than you owe and using the extra cash to purchase your second home. This can be a good strategy if you can secure a lower interest rate on your primary mortgage in the process.\n* **401(k) loans**: Some 401(k) plans allow you to borrow against your retirement savings to buy a second home, but always remember to consult your tax or financial advisor before you consider this as an option.\n* **IRA withdrawals**: Your financial advisor can also guide you through the process of potentially using money from an IRA to help buy a second home. They can explain how making an early withdrawal might work and discuss whether it's a viable option for you.\n* **Seller financing**: In some cases, the seller of the second home may be willing to finance the purchase for you. This can often bypass traditional lending requirements and may offer more flexible terms. This is more common in situations where the seller is having difficulty selling the property.\n\nEach of these options comes with its own set of risks and benefits and it’s important to carefully consider your financial situation and long-term goals before deciding on a financing method.",{"title":274,"content":275},"How do I qualify for a second-home mortgage?","Lenders do have specific criteria they look at when qualifying someone for a second-home mortgage, which can differ from the criteria used for a first home. Here are some considerations:\n\n* **[Credit score requirements](/home-buying/articles/what-credit-score-do-you-need-to-buy-a-house)**: A higher credit score might be necessary to qualify for a second home which is a reflection of the increased risk associated with a non-primary residence.\n* **[Debt-to-income ratio (DTI)](/home-buying/articles/what-is-a-good-debt-to-income-ratio)**: Your DTI may need to be lower to qualify for a second-home mortgage. Lenders will carefully evaluate your existing debts and your income to ensure you can handle additional mortgage payments. This ratio is important in determining your ability to finance another home.\n* **Cash reserves**: Otherwise known as mortgage reserves, lenders might require you to have more available cash to buy a second home. This means you may need to show that you have enough available assets to cover mortgage payments for several months on both your primary and second home, in case of lost income or other financial setbacks.\n* **Proof of income**: Demonstrating stable and sufficient income is even more critical when applying for a second-home mortgage. You may need to provide additional documentation or proof of additional income sources.","2024-10-01T14:53:00.000Z","When considering the purchase of a second home, it's important to understand the difference between a second home and an investment property. A second home is used as a personal retreat—like a beach house or a mountain cabin where you can escape the hustle and bustle. In contrast, an investment property is rented to others to generate income.","What to know about buying a second home",[197,191],{"introText":281,"text":201,"to":202,"body":282},"Still have questions?","Talking to a mortgage pro can be a game-changer when it comes to figuring out the best way to finance a second home. ",{"title":284,"keywords":7,"description":285},"How to Buy A Second Home","Thinking of buying a second home? Get expert tips and step-by-step guidance on purchasing a second property, from financing to finding the perfect getaway.","content:articles:home-buying:second-home.json","Second Home","articles/home-buying/second-home.json",[246,252],{"_path":291,"_dir":197,"_draft":6,"_partial":6,"_locale":7,"readTime":292,"l1":197,"linkNav":293,"heroMedia":294,"teaserImage":297,"outro":7,"slug":299,"sections":300,"date":328,"subheadline":329,"headline":330,"isFeatured":6,"tags":331,"link":334,"seo":337,"hasSectionNavigation":27,"_id":340,"_type":78,"title":341,"_source":80,"_file":342,"_extension":78,"tagsDetails":343},"/articles/home-buying/what-credit-score-do-you-need-to-buy-a-house",9,{"introText":200,"text":201,"to":202},{"landscape":295,"portrait":296},"/media/article-what-credit-score-do-you-need-to-buy-a-house_-mobile-768x512.jpg","/media/article-what-credit-score-do-you-need-to-buy-a-house_-mobile-desktop-520x638.jpg",{"src":298},"/media/article-what-credit-score-do-you-need-to-buy-a-house_-mobile-teaser-500x500.jpg","what-credit-score-do-you-need-to-buy-a-house",[301,304,307,310,313,316,319,322,325],{"title":302,"hideTitle":27,"content":303},"Disclaimer","Disclaimer: Citi may have different eligibility criteria and/or product offerings than those mentioned on mortgage.com.",{"title":305,"content":306},"Why your credit score matters when buying a home","Lenders use your credit score to gauge how you’ve handled debt in the past and how likely you are to repay what you borrow. [FICO®](https://www.myfico.com/) credit scores range from 300 to 850, but the ideal credit score to purchase a home depends on the type of loan you’re applying for—from zero credit requirements to scores of 700 or more.\n\n::disclaimer-dialog{buttonCopy=\"FICO Terms & Conditions\" :dialogCopy='\"## FICO® Terms & Conditions\\n\\nFICO and “The score lenders use” are registered trademarks of Fair Isaac Corporation in the United States and other countries. Your FICO® Score is provided for your own non-commercial personal review, use and benefit. Citi and Fair Isaac are not credit repair organizations as defined under federal or state law, including the Credit Repair Organizations Act. Citi and Fair Isaac do not provide ‘credit repair’ services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history or credit rating.\\n\\nYour FICO Score is calculated based on data from your Equifax credit report using the FICO Bankcard Score 8 model and may be different from other credit scores. FICO Score(s) are intended for and delivered only to the Primary cardmember and only if a FICO Score is available. Disclosure of this score is not available for all Citi products and Citi may discontinue displaying the score at our discretion.\\n\\nFICO and “The score lenders use” are registered trademarks of Fair Isaac Corporation in the United States and other countries. Your FICO Score is provided for your own non-commercial personal review, use and benefit. Citi and Fair Isaac are not credit repair organizations as defined under federal or state law, including the Credit Repair Organizations Act. Citi and Fair Isaac do not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history or credit rating.\"'}\n::\n\nIn general, the higher your credit score, the lower your interest rate, which could save you thousands of dollars over the life of your loan. A lower credit score can mean higher rates and stricter terms, placing more roadblocks between you and home sweet home.\n\n::callout{title=\"How a higher credit score reduces interest\" body=\"Let’s say you’re taking out a 30-year fixed loan for $300,000. With a credit score of 680, you might land a 7.44% APR. But bump up that score to 700, and your rate could drop to 7.32%. That 0.12% reduction in interest would save you $24 each month and $8,467 over the life of your loan. Now, just think about what you could do with those extra dollars.\" :media='{\"landscape\":\"/media/article-callout-landscape.png\",\"portrait\":\"/media/article-callout-portrait.jpg\"}'}\n::\n\n### FICO score vs. credit score\n\nA credit score is the general term for the numbers that lenders use to help determine your creditworthiness. One of the most commonly used models is your FICO score, developed by the Fair Isaac Corporation.\n\n::tip{icon=\"Bulb\" title=\"PRO TIP\" text=\"If you’re a Citi cardmember, you have free access to your FICO score—log in to check it out. If your bank doesn't partner with FICO, it’s worth checking to see if your credit card issuer does.\"}\n::",{"title":308,"content":309},"What is a good credit score to buy a home?","First, let’s go over the FICO score categories:\n\n300-579: Poor\\\n580-669: Fair\\\n670-739: Good\\\n740-799: Very Good\\\n800-850: Exceptional\n\n700 is a good spot to be in if you’re ready to go house hunting, and 740 is even better if you want to lock in the most competitive rates and save big on interest over time. See for yourself by plugging different interest rates into our Mortgage Calculator to explore how much you could save with a higher credit score. The minimum credit score to buy a house in 2025 still looks to be 500 if you’re using an FHA loan with a 10% down payment.",{"title":311,"content":312},"What credit score do you need for different types of loans?","Fortunately, you don’t need perfect credit to land a loan. Let’s check out several loan types and their typical credit requirements.\n\n::inline-table{tableLayout=\"basic\" :headers='[{\"value\":\"Mortage type\"},{\"value\":\"Minimum credit score\"},{\"value\":\"Purpose\"}]' :rows='[{\"column\":{\"valueOne\":\"Conventional loans \",\"valueTwo\":\"620\",\"valueThree\":\"For borrowers with good credit and stable income\"}},{\"column\":{\"valueOne\":\"FHA loans \",\"valueTwo\":\"500 (with 10% down payment)      580 (with 3.5% down payment)\",\"valueThree\":\"For first-time home buyers or people with lower credit and a smaller down payment\"}},{\"column\":{\"valueOne\":\"USDA loans\",\"valueTwo\":\"640 \",\"valueThree\":\"For rural home buyers in qualifying regions; requirements vary by lender\"}},{\"column\":{\"valueOne\":\"VA loans\",\"valueTwo\":\"620\",\"valueThree\":\"For service members, veterans and eligible surviving spouses looking for no down payment; requirements vary by lender\"}},{\"column\":{\"valueOne\":\"Jumbo loans\",\"valueTwo\":\"680\",\"valueThree\":\"For borrowers with strong credit buying in high-cost areas; requirements vary by lender\"}}]'}\n::",{"title":314,"content":315},"Can you get a mortgage with no credit history?","Lenders know that a credit score doesn’t always tell the whole story. If you’ve never had a credit card or taken out a loan, you may not have a traditional credit history—but you still have a financial track record. In these cases, manual underwriting may be an option. This process involves a real person (not just an algorithm) reviewing other proof of your financial responsibility, such as:\n\n* Rent\n* Utilities\n* Insurance premiums\n* Phone plans\n* Daycare/tuition\n* Entertainment services\n* Gym memberships\n* Pay-over-time plans\n\nOn top of non-traditional forms of credit history, you can boost your approval odds by making a large [down payment](/home-buying/articles/how-much-down-payment-for-a-house/) to mitigate the lender’s risk or by pursuing an [FHA loan](/home-loans/fha-loan/), which offers more lenient credit requirements.",{"title":317,"content":318},"How is your credit score calculated?","Three major credit bureaus report your credit score, using slightly different formulas: Equifax®, Experian® and TransUnion®. If you’re applying for a mortgage by yourself, a lender will use the median (or middle score) as your “official” credit score. If you’re [applying for a mortgage](/home-buying/articles/apply-for-a-mortgage) with two or more people, the lender will typically go by the lowest median score of all the applicants.\\\nIn some cases, the average median score of all borrowers will be used.\n\n::callout{title=\"Credit score evaluation in action\" body=\"Let’s say you and a co-borrower submit a mortgage application together. If your median credit score is 600 and theirs is 700, most lenders would use your 600 score as the deciding number. That means the applicant with the lowest credit score may have the biggest impact on the lender’s decision.\" image=\"\" :media='{\"landscape\":\"/media/mobile-719x300-1-.jpg\",\"portrait\":\"/media/desktop-327x245.jpg\"}'}\n::",{"title":320,"content":321},"How to improve your credit score before buying a house","So, you’re ready for a house, but your credit score isn’t? Don’t sweat it—we’ve got actionable ways to get that number into better shape.\n\n### 1. Knock out existing debt\n\nLenders want to see that you can handle your current debt and have room to take on more. Chipping away at your existing debt not only feels good—it can have a positive impact on your credit. If you have big credit card bills or student loans, keep paying them down until they’re off your plate.\n\nThis helps your credit from two angles: your [debt-to-income (DTI) ratio](/home-buying/articles/what-is-a-good-debt-to-income-ratio) and your credit utilization ratio. Remember, the DTI ratio measures how well you manage debt. Your credit utilization ratio compares your spending to your credit limits. So, if you’re holding onto a high balance, lenders may assume you can’t handle any more debt.\n\n### 2. Make payments on time\n\nLenders love a reliable borrower. When you build up a history of paying your bills on time, you look trustworthy, which can result in your credit score increasing. This applies to many payments, like electricity and phone bills, so it’s a good idea to stay on top of every expense. \n\n### 3. Hold off on opening new lines of credit\n\nTo make a good impression, avoid applying for new credit accounts right before your mortgage application and during the approval process. If you do, your credit score could get dinged for hard inquiries on your credit report.",{"title":323,"content":324},"What else affects mortgage approval besides credit score?","Beyond your credit score, lenders factor in a few other indicators of creditworthiness: [debt-to-income (DTI) ratio](/home-buying/articles/what-is-a-good-debt-to-income-ratio/), loan-to-value (LTV) ratio and income. If you want to find out how well you currently manage debt, take the [DTI Calculator](/calculators/) for a spin.\n\n::inline-table{tableLayout=\"basic\" :headers='[{\"value\":\"Factor lenders consider\"},{\"value\":\"Description\"},{\"value\":\"Requirements\"}]' :rows='[{\"column\":{\"valueOne\":\"Debt-to-income (DTI) ratio\",\"valueTwo\":\"The relationship between the debt you owe and the income you earn each month used to assess if you can manage another debt payment.\",\"valueThree\":\"A DTI lower than 50% improves your odds. The lower your DTI, the more income you have to spare for an additional mortgage payment.\"}},{\"column\":{\"valueOne\":\"Loan-to-value (LTV) ratio\",\"valueTwo\":\"The home’s appraised value vs. the amount you’re borrowing, calculated by dividing the loan amount by the home price, written as a percentage.\",\"valueThree\":\"Lenders typically look for an LTV ratio of 80% or lower, which is why a 20% down payment is often required. The more of your own money you invest upfront, the less risk the lender takes on. \"}},{\"column\":{\"valueOne\":\"Income\",\"valueTwo\":\"Salary can affect what type of loan you qualify for and the interest rate you’re offered.\",\"valueThree\":\"Lender requirements vary, but most will want proof of income via bank statements, paystubs and W-2s. FHA and USDA loans are ideal for lower credit borrowers. \"}}]'}\n::",{"title":326,"content":327},"Where to check and monitor your credit score for free","Keep tabs on your progress by monitoring your creditworthiness. You can review your past credit history (but not your score) for free each week via the government-authorized [AnnualCreditReport.com](http://AnnualCreditReport.com.). You can also track your credit score for free weekly through services like [Credit Karma](https://www.creditkarma.com/lp/free-credit-scores-v12a?gclsrc=aw.ds&gad_source=1&gad_campaignid=20266610103&gbraid=0AAAAADrT-VckmG2WWRqdeIWuQtsiDGNIh&gclid=CjwKCAjwz_bABhAGEiwAm-P8YbsDDL9J7Lgo6l1yerSEgO0vrq665wzqrjcd-nLOpGaSzkrPes4UfxoCP34QAvD_BwE), [Experian](https://usa.experian.com/mfe/credit/report/experian/now?op=XXXX-ALT-AC2-XXX-QAR-XXXXXXX-XX-EXP-VMAC-SEM-XXXXXX-XXXXXX-XXXXX&_gl=1*1n6y7el*_gcl_aw*R0NMLjE3NDY4MTg5MDYuQ2p3S0NBand6X2JBQmhBR0Vpd0FtLVA4WWFzZUpaY1pwVHBvS0tCMjVBdkFuRjF6SVBnOGpyNUtydDN6WVVWblJ4TGF1UjlfUXE5VWtob0NxWDhRQXZEX0J3RQ..*_gcl_au*MTI5Mjk3MTA5MC4xNzQ2ODE4OTAz*_ga*MTkwMzI2ODEwLjE3MjE5MzU3MzE.*_ga_7EN8BHB8L8*czE3NDY4MTg5MDMkbzckZzAkdDE3NDY4MTg5MDMkajYwJGwwJGgw*_ga_22YNWJN8Z2*czE3NDY4MTg5MDMkbzckZzAkdDE3NDY4MTg5MDMkajYwJGwwJGgw) or banks that offer [FICO](https://www.myfico.com/) score access.\n\n::disclaimer-dialog{:dialogCopy='\"## FICO® Terms & Conditions\\n\\nFICO and “The score lenders use” are registered trademarks of Fair Isaac Corporation in the United States and other countries. Your FICO® Score is provided for your own non-commercial personal review, use and benefit. Citi and Fair Isaac are not credit repair organizations as defined under federal or state law, including the Credit Repair Organizations Act. Citi and Fair Isaac do not provide ‘credit repair’ services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history or credit rating.\\n\\nYour FICO Score is calculated based on data from your Equifax credit report using the FICO Bankcard Score 8 model and may be different from other credit scores. FICO Score(s) are intended for and delivered only to the Primary cardmember and only if a FICO Score is available. Disclosure of this score is not available for all Citi products and Citi may discontinue displaying the score at our discretion.\\n\\nFICO and “The score lenders use” are registered trademarks of Fair Isaac Corporation in the United States and other countries. Your FICO Score is provided for your own non-commercial personal review, use and benefit. Citi and Fair Isaac are not credit repair organizations as defined under federal or state law, including the Credit Repair Organizations Act. Citi and Fair Isaac do not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history or credit rating.\"' buttonCopy=\"FICO Terms & Conditions\"}\n::","2025-07-16T12:00:00.000-05:00","When you’re ready to purchase a home, your credit score steps into the spotlight. This three-digit number is a key player in your mortgage approval—it helps lenders decide how much they trust you and what kind of loan terms you'll get. The higher your score, the better your chances of getting approved and receiving a favorable interest rate. Knowing what kind of credit score you need for different loan types can help you break into homeownership without breaking the bank.","What credit score do you need to buy a house?",[332,333,191],"first-time-buyer","credit-score",{"introText":335,"text":201,"to":202,"body":336},"Ready to buy a home?   ","Let Citi help you decide on the right loan options for you. ",{"title":338,"description":339},"What Credit Score Do You Need To Buy a House?","Find out the credit score needed to buy a house. Learn what score is required for a mortgage, how it impacts your loan, and tips for improving your credit.","content:articles:home-buying:what-credit-score-do-you-need-to-buy-a-house.json","What Credit Score Do You Need To Buy A House","articles/home-buying/what-credit-score-do-you-need-to-buy-a-house.json",[246,344,348],{"label":345,"slug":332,"seo":346},"First Time Buyer",{"description":347},"Learn more about first time buyer with helpful articles, tools, and guides to support your homeownership journey.",{"label":349,"slug":333,"seo":350},"Credit Score",{"description":351},"Understand how your credit score impacts your ability to qualify for a home loan and how to improve it.",{"_path":353,"_dir":197,"_draft":6,"_partial":6,"_locale":7,"readTime":258,"l1":197,"linkNav":354,"heroMedia":355,"teaserImage":358,"slug":360,"disclosure":91,"sections":361,"date":383,"subheadline":384,"headline":385,"dateModified":386,"isFeatured":6,"tags":387,"link":388,"seo":391,"hasSectionNavigation":27,"_id":394,"_type":78,"title":395,"_source":80,"_file":396,"_extension":78,"tagsDetails":397},"/articles/home-buying/what-is-cost-of-living",{"introText":200,"text":201,"to":202},{"landscape":356,"portrait":357},"/media/cost-of-living-mobile-768x512.jpg","/media/cost-of-living-desktop-520x638.jpg",{"src":359},"/media/cost-of-living-teaser-500x500.jpg","what-is-cost-of-living",[362,365,368,371,374,377,380],{"title":363,"content":364},"What does “cost of living” mean?","Think of cost of living as a snapshot of how far your income goes in one location versus another. For example, in some cities, an income of $2,500 a month might cover rent, groceries and your car payment. In other places, that amount may barely cover housing. Calculating cost of living is a practical way to set realistic expectations when budgeting, job hunting or planning a move.",{"title":366,"content":367},"How is cost of living calculated?","Most cost-of-living indexes compare a selection of major spending categories to show how affordable (or not) one place is compared to another.\n\n::card{eyebrowIcon=\"\" body=\"Curious what life might cost in a new city? Our Cost-Of-Living Calculator may help.\" imagePosition=\"top\" ctaType=\"text-arrow\" marginSize=\"small\" :isInlineCard=false headline=\"Compare cost of living with our free calculator\" backgroundColor=\"\" icon=\"Calculator\" link=\"/calculators/cost-of-living/\" ctaText=\"Learn More\"}\n::\n\n### What’s included in cost-of-living estimates?\n\nA common misconception is that housing is the only cost that matters—but it's just one part of the equation. A true cost-of-living comparison takes into account all of the major expenses that impact your daily life. Cost of living often varies depending on the source, but here’s what typically gets factored in: \n\n* **Housing:** Rent or mortgage payments, property taxes and homeowners or renters insurance. \n* **Groceries:** Basic food and household items like milk, meat, produce and cleaning supplies. \n* **Utilities:** Monthly bills for electricity, natural gas, water, garbage collection, phone, internet and cable service. \n* **Transportation:** Car payments, gas, car insurance or public transit fares.\n* **Healthcare:** Out-of-pocket expenses for medical care, insurance premiums, prescriptions and routine care. \n* **Taxes:** Local and state income, property and sales tax rates—all of which can impact take-home pay and everyday expenses. \n\nOther categories that may be included are: \n\n* **Childcare and education:** Daycare, babysitters and school fees.\n* **Miscellaneous/personal spending:** Clothing, entertainment, dining and other flexible personal expenses. \n\n###  Who calculates cost of living? \n\nCost-of-living comparisons are compiled by several trusted organizations—some government, some academic and some designed with consumers in mind. Each one offers a different perspective on everyday costs across the U.S. Here’s a quick guide to some of the most reliable sources: \n\n* **Bureau of Labor Statistics:** Tracks national price trends through the Consumer Price Index—a key measure of inflation and cost-of-living changes over time. \n* **Council for Community and Economic Research:** Publishes the Cost of Living Index, which compares prices in more than 300 U.S. cities across categories like housing, groceries and transportation. \n* **MIT Living Wage Calculator:** Estimates the income needed to meet basic expenses by location and household size. \n* **Bureau of Economic Analysis:** Provides Regional Price Parities, which show how prices vary from state to state and city to city, helping you compare purchasing power across regions.",{"title":369,"content":370},"Cost of living by state (2025 data)","One of the easiest ways to compare costs across the country is by using the Cost of Living Index, published by the Council for Community and Economic Research. Each location receives a score based on how its prices stack up against the national average, which is set at 100. \n\n* A score above 100 means the area is more expensive than average.\n* A score below 100 means it’s more affordable. \n\nThis index takes into account everyday expenses like housing, groceries, transportation and healthcare, giving you a well-rounded view of local costs.\n\n### Cost-of-living trends \n\nWhen you zoom out and look at the national picture, some clear patterns emerge. The Northeast and West Coast are typically the most expensive, driven by high housing costs, local taxes and elevated wages in dense urban centers. Meanwhile, the Midwest and South tend to be more budget friendly thanks to lower housing costs and generally modest tax rates. And Sunbelt states like Florida, Texas and Tennessee often land just above the national average, offering a mix of affordability and strong job growth—especially in areas that don’t charge state income tax. \n\n### Highest cost of living states \n\nThe states with the highest cost of living include Hawaii, Alaska, California, Massachusetts, New York and Washington, D.C. Hawaii regularly tops the list, with prices for housing and groceries well above average. In California and New York, high housing demand, income taxes and expensive services drive up the overall cost of living. For example, California’s state income tax tops out at 13.3% for those whose annual household income is $1 million or more, the highest in the country. \n\n### Lowest cost of living states \n\nThe best states for cost of living—like West Virginia, Oklahoma and Kansas—consistently rank among the most affordable places to live. These states offer housing prices 20-30% below the national median and boast lower costs for essentials like food, utilities and healthcare. Oklahoma also has no state-level property tax, and both Oklahoma and West Virginia have relatively low income tax rates, helping stretch your take-home pay. \n\n### States with the highest cost of living\n\n::inline-table{tableLayout=\"basic\" :headers='[{\"value\":\"Rank\"},{\"value\":\"State\"},{\"value\":\"Index #\"}]' :rows='[{\"column\":{\"valueOne\":\"1\",\"valueTwo\":\"Hawaii\",\"valueThree\":\"179.7\"}},{\"column\":{\"valueOne\":\"2\",\"valueThree\":\"150.8\",\"valueTwo\":\"Massachusetts\"}},{\"column\":{\"valueTwo\":\"California\",\"valueThree\":\"136.7\",\"valueOne\":\"3\"}},{\"column\":{\"valueTwo\":\"District of Columbia\",\"valueThree\":\"135.2\",\"valueOne\":\"4\"}},{\"column\":{\"valueOne\":\"5\",\"valueTwo\":\"Alaska\",\"valueThree\":\"127.7\"}}]'}\n::\n\n### States with the lowest cost of living  \n\n::inline-table{tableLayout=\"basic\" :headers='[{\"value\":\"Rank\"},{\"value\":\"State\"},{\"value\":\"Index #\"}]' :rows='[{\"column\":{\"valueTwo\":\"Oklahoma \",\"valueThree\":\"84.4\",\"valueOne\":\"1\"}},{\"column\":{\"valueTwo\":\"Mississippi\",\"valueThree\":\"85.5\",\"valueOne\":\"2\"}},{\"column\":{\"valueTwo\":\"Alabama\",\"valueOne\":\"3\",\"valueThree\":\"87.9\"}},{\"column\":{\"valueTwo\":\"West Virginia\",\"valueOne\":\"4\",\"valueThree\":\"88.1\"}},{\"column\":{\"valueTwo\":\"Kansas\",\"valueThree\":\"88.9\",\"valueOne\":\"5\"}}]'}\n::\n\nSource: [Missouri Economic Research and Information Center](https://meric.mo.gov/data/cost-living-data-series?). Last updated Q3 2025.",{"title":372,"content":373},"Comparing cost of living by city","Cost of living can vary just as much between cities as it does between states—sometimes even more. Large metro areas like New York City and San Francisco routinely rank among the most expensive in the country, driven by sky-high rent, steep taxes and pricey everyday essentials. In contrast, rapidly growing cities like Austin and Tampa offer more affordable living, thanks to lower housing costs and no state income tax.\n\nCost of living examples: NYC vs. Austin\n\n::inline-table{tableLayout=\"basic\" :headers='[{\"value\":\"Expense category\"},{\"value\":\"New York City\"},{\"value\":\"Austin\"}]' :rows='[{\"column\":{\"valueOne\":\"Rent\",\"valueTwo\":\"$4,110.30\",\"valueThree\":\"$2,046.24\"}},{\"column\":{\"valueOne\":\"Basic utilities\",\"valueTwo\":\"$182.32\",\"valueThree\":\"$173.55\"}},{\"column\":{\"valueOne\":\"Income taxes\",\"valueTwo\":\"State income tax up to 10.9%\",\"valueThree\":\"No state income tax\"}}]'}\n::\n\nEven within the same state, the cost of living can vary a lot. For example, moving from Albany to NYC or Fresno to San Francisco could raise your expenses significantly. That’s why it pays to compare individual metro areas—not just states—so you can gain a clear idea of how far your budget might go in different areas.",{"title":375,"content":376},"How location affects affordability","It’s not just about how much you earn—it’s how far your money goes. A $60,000 salary might comfortably cover the essentials in San Antonio but fall short in San Francisco. That’s why understanding the cost of living is key when planning a move or switching jobs. \n\nWith more people working remotely, many are choosing to live in lower-cost cities while keeping higher-paying jobs in expensive metro areas—gaining more space, savings and overall higher quality of life.",{"title":378,"content":379},"What affects cost of living the most?","Housing tops the list. Rent or mortgage payments make up the largest portion of a household budget. For example, average monthly rent in San Jose is around $3,000—more than double the $1,450 average in Cincinnati. \n\nTaxes are another major expense. States like Texas, Florida and Alaska don’t tax income, but they often make up for it with higher property or sales taxes. In contrast, residents of New York and California may pay 9-10% in state income taxes. Healthcare and childcare costs also vary widely by region. For young families, childcare alone can add thousands of dollars per year. \n\nBroad economic factors like inflation and supply chain disruptions can also impact everyday costs. For instance, in July 2025, gas prices in California increased to an average of $4.31 per gallon—far above the national average—due to various supply chain constraints. Even as national inflation trends ease, local challenges can continue to push prices higher.\n\nFor homebuyers, mortgage terms can significantly influence long-term affordability. Factors like interest rates, down payment requirements and loan structure all affect how manageable monthly housing costs are. Exploring different mortgage options, such as Citi’s [home loan](/home-loans/) offerings, may help align housing costs with your broader cost-of-living budget.",{"title":381,"content":382,"hideTitle":27},"Cost of Living FAQs","::faq{:faqs='[{\"question\":\"What does cost of living mean?\",\"answer\":\"Cost of living is the amount of money needed to cover essential expenses like housing, food, transportation and healthcare in a specific city or region. It’s a key factor in determining how affordable a location is, and it helps you compare locations when considering a move or a new job.\"},{\"question\":\"How do I compare cost of living between cities?\",\"answer\":\"You may be able to use our Cost-of-Living Calculator to compare expenses in different cities. You can also consult tools like the Cost of Living Index, published by the Council for Community and Economic Research, which compares prices across more than 300 U.S. metro areas. These tools help you estimate how your expenses will change if you move.\"},{\"question\":\"What is cost of living: core components in estimates\",\"answer\":\"Typical cost-of-living estimates include major budget categories like housing, groceries, utilities, transportation, healthcare and taxes. Depending on the source, they may also factor in childcare and other everyday costs.\"},{\"question\":\"What is the most expensive state to live in?\",\"answer\":\"As of 2025, Hawaii has the highest cost of living in the U.S. Housing costs, grocery prices and everyday goods are well above the national average due to geographic isolation and limited supply chains.\"},{\"question\":\"Does cost of living affect salary?\",\"answer\":\"Yes, cost of living usually impacts salary offers. Employers in higher-cost cities typically offer increased compensation to help cover higher expenses like rent, transportation and local taxes. If you’re relocating, it’s a good idea to factor in both salary and cost of living to understand your true buying power.\"}]' headline=\"Cost of Living FAQs\"}\n::","2025-07-28T07:58:00.000-07:00","**Key insights:** \n\n* Cost of living is how much money you need to cover necessary costs in a given place \n* The prices of housing, groceries, utilities and more factor into an area’s cost of living \n* Comparing cost of living in different states and cities can help you plan for a move or decide whether to take a new job \n\nCost of living is how much money it takes to cover your daily expenses, like housing, groceries, healthcare, transportation and taxes, in a specific location. Whether you’re relocating, switching jobs or just curious how your money stacks up, a cost-of-living comparison by state or city can help you plan smarter for your next move.","What is cost of living? A state and city breakdown","2026-04-01T14:19:00.000Z",[197,191],{"introText":389,"body":390,"text":201,"to":202},"Planning a Move?","We can help you explore options that fit your budget.",{"title":392,"description":393},"What Is Cost of Living? State Comparison Guide | Mortgage.com","Understand what cost of living means and how it varies by state and city. Learn how to compare expenses with cost of living before making a move.","content:articles:home-buying:what-is-cost-of-living.json","What Is Cost Of Living","articles/home-buying/what-is-cost-of-living.json",[246,252],{"_path":399,"_dir":400,"_draft":6,"_partial":6,"_locale":7,"readTime":258,"l1":400,"linkNav":401,"heroMedia":402,"teaserImage":405,"slug":407,"sections":408,"date":430,"subheadline":431,"headline":416,"isFeatured":6,"tags":432,"link":434,"seo":437,"hasSectionNavigation":27,"_id":440,"_type":78,"title":441,"_source":80,"_file":442,"_extension":78,"tagsDetails":443},"/articles/home-loans/heloc-as-down-payment-second-home","home-loans",{"introText":200,"text":201,"to":202},{"landscape":403,"portrait":404},"/media/can-you-use-a-heloc-as-a-down-payment-on-second-home-mobile-768x512.jpg","/media/can-you-use-a-heloc-as-a-down-payment-on-second-home-desktop-520x638.jpg",{"src":406},"/media/can-you-use-a-heloc-as-a-down-payment-on-second-home-teaser-500x500.jpg","heloc-as-down-payment-second-home",[409,412,415,418,421,424,427],{"title":410,"content":411},"What is a HELOC?","A home equity line of credit ([HELOC](/home-loans/heloc/)) is a flexible way of tapping home equity, converting a portion of your home’s value into accessible cash. It’s a second mortgage that gives you a set amount of credit to draw from, secured by your home. \n\nThe loan has two distinct phases: a draw period where you can borrow money as needed, and a repayment period to pay off the balance. This makes a HELOC an excellent tool for funding ongoing expenses or a series of projects, since you pay interest only on the money you’ve actually used.\n\nWhile it offers flexibility, keep in mind that HELOCs have a variable interest rate, which means your payment can change over time based on the [fluctuation of interest rates](/rates/articles/federal-reserve-interest-rates/).",{"title":413,"content":414},"Is a HELOC a second mortgage?","Yes, a HELOC is a type of second mortgage. But the terms aren’t exactly interchangeable. Let’s dig into the second mortgage vs. HELOC comparison.\n\n“Second mortgage” refers broadly to any loan that’s secured by your home and takes second position behind your [primary mortgage](/home-loans/articles/types-of-loans/). That includes both HELOCs and home equity loans.\n\nUnlike HELOCs, [home equity loans](/home-loans/home-equity/) provide a lump sum up front with a fixed interest rate.\n\nHere is a quick comparison of the two. If you want more details, deep dive into [HELOCs vs. home equity loans](/home-loans/articles/heloc-vs-home-equity-loan/).\n\n::inline-table{tableLayout=\"basic\" :headers='[{\"value\":\"Feature\"},{\"value\":\"HELOC\"},{\"value\":\"Home Equity Loan\"}]' :rows='[{\"column\":{\"valueOne\":\"How it works\",\"valueTwo\":\"Revolving line of credit\",\"valueThree\":\"Lump sum loan\"}},{\"column\":{\"valueOne\":\"Interest\",\"valueTwo\":\"Usually variable; interest is only on what you borrow\",\"valueThree\":\"Fixed rate on the full amount\"}},{\"column\":{\"valueOne\":\"Repayment\",\"valueTwo\":\"Interest-only during draw period, then principal and interest payments\",\"valueThree\":\"Fixed monthly payments until paid off\"}}]'}\n::",{"title":416,"content":417},"Can you use a HELOC for a down payment on a second home?","Yes—in some cases. Using a HELOC to fund a [second home](/home-buying/articles/second-home/) down payment is a popular strategy for homeowners who want to access their equity without draining their cash savings. However, this approach adds another layer of debt and is subject to strict lender requirements. \n\n### Lender requirements and restrictions\n\nEvery lender has specific rules around using HELOCs for investment property or a second home. Always confirm the HELOC second home rules up front to avoid surprises during underwriting.\n\n### Loan-to-value (LTV) limits and credit considerations\n\nLenders evaluate your financial profile when you’re leveraging equity, including:\n\n**Credit and DTI:** You’ll need a [strong credit](/home-buying/articles/what-credit-score-do-you-need-to-buy-a-house/) score (often a 680+ FICO® score) and a healthy [debt-to-income (DTI) ratio](/home-buying/articles/what-is-a-good-debt-to-income-ratio/).\n\n**Your home’s equity:** Most lenders require you to maintain a certain amount of equity in your primary home—typically 15%-20%—even after a HELOC is taken out.\n\n**Loan purpose:** Some lenders prohibit the use of a HELOC for a down payment on another property, while others may require a larger down payment or more cash reserves.",{"title":419,"content":420},"Pros and cons of using a HELOC for a second home","A HELOC can be a useful tool, but make sure you do your homework on the pros and cons before you commit. Use our [HELOC calculator](/calculators/heloc/) to estimate the costs and see if it’s the right home equity financing option for you.\n\n::content-table{:useBullets=false :tableData='[{\"row\":[{\"column\":\"Pros\"},{\"column\":\"Cons\"}]},{\"row\":[{\"column\":\"Access cash without selling investments or draining savings\"},{\"column\":\"Your monthly payments may rise if interest rates go up\"}]},{\"row\":[{\"column\":\"The ability to draw funds as you need them\"},{\"column\":\"Not all lenders allow a HELOC for a second home down payment\"}]},{\"row\":[{\"column\":\"Flexible funds can also cover unexpected costs after closing\"},{\"column\":\"Adds another layer of debt and risk to your primary home\"}]}]'}\n::",{"title":422,"content":423},"Alternatives to HELOCs for your down payment","If a HELOC isn’t right for you, check out other mortgage down payment sources:\n\n* **[Cash-out refinance](/refinancing/articles/cash-out/)**: Replace your primary mortgage with a larger one and receive the difference in cash.\n* **Personal loan:** An unsecured loan that typically has higher interest rates than a HELOC.\n* **Retirement account loan:** Borrow from a 401(k) or similar plan but be aware that this reduces your retirement savings.\n* **Saving over time:** The safest option, as it avoids adding any new debt.",{"title":425,"content":426},"How to apply for a HELOC","The HELOC application process is similar to that of a mortgage: you’ll need documentation for your income, assets and the property itself. The lender will then review your equity, credit score and DTI ratio to set your borrowing limit and terms.",{"title":428,"hideTitle":27,"content":429},"FAQs: Using a HELOC for a second home","\n\n::faq{headline=\"FAQs: Using a HELOC for a second home\" :faqs='[{\"question\":\"Is a HELOC considered a second mortgage?\",\"answer\":\"Yes, a HELOC is one type of second mortgage.\"},{\"question\":\"Can you use a HELOC for the down payment on an investment property?\",\"answer\":\"Some lenders allow this, but the requirements and restrictions are often stricter than for a second home.\"},{\"question\":\"What credit score do you need for a HELOC?\",\"answer\":\"Most lenders look for a FICO credit score of 620 or higher. However, you will likely need a score of 680+ when using the HELOC for a second-home purchase.\"},{\"question\":\"How much can you borrow with a HELOC?\",\"answer\":\"HELOC lenders generally let you tap into about 85% of your home’s value after subtracting what you still owe on your mortgage and other home loans.\"},{\"question\":\"What are the risks of using a HELOC for a down payment?\",\"answer\":\"Using a HELOC for a down payment can be risky because you’ll be paying off loans for two homes, which can make managing payments difficult. HELOCs also have variable interest rates, so your payments can unexpectedly rise.\"}]'}\n::","2025-09-29T13:30:00.000Z","HELOCs are a popular and flexible way for homeowners to access the equity they’ve built, but how exactly can you use them? Lots of homeowners wonder how to pay for something using a HELOC balance or if they can use a HELOC to buy another house. The short answer is that a HELOC can be used for both, but not always. Think of it as a revolving line of credit that lets you borrow money up to a set limit and pay interest only on the amount you use. Learn how HELOCs work, how they compare to home equity loans, the pros and cons and alternative down payment financing options.",[197,433,191],"refinancing-process",{"introText":435,"body":436,"text":201,"to":202},"Questions about using a HELOC for a second home?","We can walk you through eligibility, lender requirements and alternatives.",{"title":438,"description":439},"Using a HELOC Towards Buying a Second Home | Citi Mortgage","Learn if you can use a HELOC as a down payment on a second home, how lenders view it, the risks involved, and alternative financing options.","content:articles:home-loans:heloc-as-down-payment-second-home.json","Heloc As Down Payment Second Home","articles/home-loans/heloc-as-down-payment-second-home.json",[246,444,252],{"label":445,"slug":433},"Refinancing Process",1775249726843]