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A family opportunity mortgage is a loan for a residential property bought for a parent or an adult disabled child who could not qualify for financing on their own.

Under Fannie Mae guidelines, a principal residence can be purchased for a child or parent who is unable to work or who does not have sufficient income to qualify for a mortgage. The buyer will be considered the owner-occupant even though they will not live in the house.

This article will explain family opportunity mortgage guidelines and rules, how to find lenders, and more.

What Is a Family Opportunity Mortgage?

What was a formally titled program under Fannie Mae is now a conventional loan with expanded guidelines to allow owner-occupied financing under special circumstances.

A family opportunity mortgage may be used:

•   When parents or legal guardians of a disabled adult child want to provide housing for the child.

•   When children want to provide housing for parents who cannot qualify for a mortgage because they cannot work or their income is too low.

Buyers are able to obtain financing at the same interest rates and terms as a principal residence under these circumstances. They do not have to use second home or investment property requirements.

Recommended: How to Buy a Single-Family Home

How a Family Opportunity Mortgage Works

A family opportunity mortgage works just as a conventional mortgage for your primary residence does. Buyers must meet Fannie Mae’s eligibility and underwriting standards in order to qualify for the loan.

Lenders consider your debt-to-income (DTI) ratio, monthly debts as a percentage of your gross monthly income. Fannie Mae guidelines call for a maximum 45% DTI, or 50% with certain compensating factors.

Your income, though, must be high enough to cover the home mortgage loan for your primary residence and the residence you want to buy for your parent or dependent child. A credit score of at least 620 and steady employment will be required to qualify for the new mortgage as well.

Example of a Family Opportunity Mortgage

Here’s an example where you could use the family opportunity mortgage. Let’s say you have elderly parents who need more care, and you would like for them to move near you. Their retirement income isn’t enough to qualify for a mortgage in your area.

If you have enough income and a decent credit score, you may be able to buy a house for them. This is where a family opportunity mortgage may make sense.

You’ll turn to your lender to qualify you for owner financing. The term “family opportunity mortgage” is, technically, no longer in use, but the ability to qualify for an owner-occupied mortgage for a disabled adult child or elderly parent following Fannie Mae guidelines is the same. The lender can help you explore different types of mortgages that will meet Fannie Mae’s criteria.

You’ll need to choose between a fixed-rate loan and an adjustable-rate mortgage.

After settling on a mortgage product, you’ll submit all the necessary documents through your lender to apply for the mortgage.

After the loan closes, your parents will move into the house, and you’ll make the mortgage payments in your name.

Keep in mind the mortgage and the deed will be in your name unless you add your parents to the deed. There are advantages and disadvantages to structuring it this way, so be sure to do some research or consult a lawyer.

Recommended: Home Loan Help Center

Steps to Qualify for a Family Opportunity Mortgage

If you want to qualify for an owner-occupied mortgage for a disabled adult child or elderly parent, you’ll need to take the following steps:

•   Complete a mortgage application with your lender. You’ll need to add the amount of the additional mortgage to the one you have on your principal residence (if any) and still have enough income to qualify for financing. Take a look at this mortgage calculator tool if you want help coming up with an estimate.

•   Obtain preapproval. By providing a specific tentative loan amount, mortgage preapproval allows you to look for homes that fall within your budget.

•   Find a suitable property. The property does not have to be outside a specific distance from your own home (what’s known as “distance rules”); nor do you have to reside in the property to qualify for owner-occupied financing. The types of houses may be restricted to single-family homes, but it may also be up to your lender.

•   Provide your lender with all necessary documentation. This may include proof of the adult child’s disability or proof that a parent is unable to take on a mortgage.

•   Close on the loan. Sign all the paperwork, wire your down payment and closing costs to the appropriate entity, and take care of any final details.

A family opportunity loan is usually treated like conventional financing for an owner-occupied home. Some lenders may have stricter lending standards when it comes to the definition of an owner-occupied residence.

Advantages of a Family Opportunity Mortgage

Being able to provide housing for a loved one with owner-occupied financing comes with some advantages:

•   Lower down payment requirement. With a family opportunity mortgage, the minimum down payment is usually 5% (0% if borrowers qualify for a USDA or VA loan). If the property is bought as a second home or investment, the down payment requirement is usually 15% or more.

•   Interest rates are lower. Loan rates for second homes or investment properties run higher than owner-occupied residential mortgage rates.

•   Lower property taxes. When a property is classified as owner-occupied by your local taxing authority, you may qualify for an exemption that reduces property taxes owed.

•   Mortgage interest and property tax may be tax deductible. When you file your taxes, you may be able to claim the mortgage interest and property tax dedication for both properties. Consult a tax advisor about this deduction.

•   Borrowers are not required to occupy the property. With a family opportunity mortgage, you are not required to live on the property to qualify for owner-occupied financing.

Which Lenders Offer Family Opportunity Mortgages?

Since the official program with the name “Family Opportunity Mortgage” has been discontinued, you won’t be looking for a lender that offers this program when you are shopping for a mortgage. Instead, you’ll be looking for a lender that allows you to use Fannie Mae’s definition of an owner-occupant when buying a house for a parent or disabled adult child. Many lenders will offer this as it is a common conventional loan.

Tax Implications of a Family Opportunity Mortgage

The tax implications of owning a home with a type of family opportunity mortgage may be complex. It’s a good idea to consult a tax attorney or tax accountant for advice.

Dream Home Quiz

The Takeaway

Buying a home for a disabled adult child or an aging parent is possible if you meet Fannie Mae guidelines and have sufficient income. If you’re looking for the family opportunity mortgage, ask lenders if they allow owner-occupied conventional financing if you purchase a home for parents or a disabled adult child. You’ll save money while providing housing to a vulnerable adult.

FAQ

Has the Family Opportunity Mortgage program been discontinued?

The formal name “Family Opportunity Mortgage” has been discontinued, but Fannie Mae still allows conventional mortgages to be considered owner-occupied for buyers who are purchasing a home for a disabled adult child or for parents who cannot qualify for mortgages on their own.

Can I buy a home for someone who is not my family member?

You can buy a single-family home for someone who is not a family member, but the circumstances do not meet Fannie Mae family opportunity mortgage guidelines and will not qualify for owner-occupied financing.

Photo credit: iStock/Ridofranz

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SOHL-Q125-033

Paying off your mortgage ahead of time might sound like an incredibly savvy thing to do — and in some cases, it is. But it’s not the right money move for everyone. And paying off a mortgage in just five years? It’s an aggressive strategy that may or may not be the smartest choice.

Benefits and Risks of Paying Off a Mortgage Early

Achieving homeownership is, well, an achievement. And since you’re here reading an article about paying a mortgage off early, you’re clearly an overachiever.

Paying off any kind of debt early usually seems advisable. But for most of us, our home is the single largest purchase we’ll ever make — and paying off a six-figure loan in only a few years could wreak havoc on the rest of your finances.

In addition, some mortgages come with a prepayment penalty, which means you could be on the line for additional fees that might eclipse whatever you’d stand to save in interest payments over time. (Mortgages tend to have lower interest rates than many other common types of debt anyway.)

That said, if you have the cash, paying off your home early can lead to substantial savings, not to mention helping you build home equity as quickly as possible.

Let’s take a closer look at the risks and benefits of paying off a mortgage early.

Benefits of Paying Off a Mortgage Early

The main benefit of paying off a mortgage early is getting out of debt. Even minimal interest is an expense it can be nice to avoid.

Additionally, paying off your home early means you’ll have 100% equity in your home, meaning you own its whole value, which can be a major boon to your net worth.


💡 Quick Tip: With SoFi, it takes just minutes to view your rate for a home loan online.

Risks of Paying Off a Mortgage Early

Paying off a mortgage early may come with risks, and not just prepayment penalties (which we’ll touch on again in a moment). In many instances, it can be a plain old bad financial move.

Depending on what your cash flow situation looks like, and what the interest rate on your mortgage is, you might stand to out-earn early payoff savings if you funnel the extra cash to your investment or retirement accounts instead. (You can use this mortgage calculator to see how much interest you stand to pay over the lifetime of your home loan — and then compare that to how much you might earn if you invested that money instead.)

Additionally, if you have other forms of high-interest debt, like revolving credit card balances, it’s almost always a better idea to focus your financial efforts on those pay-down projects instead.

“No matter what method works best for you, it’s important to cut spending as much as you can while you’re tackling your debts,” said Kendall Meade, a Certified Financial Planner at SoFi.

And if you have historically taken the home mortgage interest deduction on your taxes, it’s also worth talking with your tax advisor about what impact paying off your mortgage early will have on your deductions. (For 2025, the standard deduction for married couples filing jointly is $31,500. For single taxpayers and married people filing separately, it’s $15,750. In 2026, married couples have a standard deduction of $32,200 and single people and married people filing separately can deduct $16,100.)

To recap:

Watching Out for Prepayment Fees

One of the biggest risks of paying off a mortgage before its full term is up is the potential to run into prepayment penalties. Some mortgage lenders charge large fees to make up for the interest they’ll be missing out on.

Fortunately, avoiding prepayment penalties on home loans written after 2014 is easier: Legislation was passed to restrict lenders’ ability to charge those fees. But if your mortgage was written in 2013 or earlier — and even if not — it’s a good idea to read the fine print before you hit “submit” on your lump-sum payment, and ideally before you accept the contract at all.

Steps to Paying Off a Mortgage Early

You’ve assessed the risks and benefits and decided that paying off the mortgage early is the right move for you. Nice!

Now let’s take a look at how to get it done.

Pregame: Considering Repayment Goals When House Shopping

This option won’t work if you’ve already found and moved into a home, but if you’re still in the home-shopping portion of the journey, looking at inexpensive homes can be a great first step toward paying off your mortgage fast.

After all, if the home has a lower price tag, it’ll be easier to reach that goal in a shorter amount of time. Ideally, you want its value to appreciate, so you’ll still want to shop around before just choosing the lowest-priced house on the block.

Maybe you signed your home contract years ago and are just now considering getting serious about early mortgage repayment. Take heart! There are some easy steps to follow to make your mortgage disappear in five years or so.

1. Setting a Target Date

The first step: figuring out exactly when you want the mortgage paid off. Choosing your target date will make it easier to figure out how much additional money you need to send to your lender each month.

Five years is a pretty tight timeline for this kind of debt repayment process, but it could be doable depending on your earnings and commitment.

2. Making a Higher Down Payment

The higher your down payment, the less loan balance you’ll have to pay down, so if you can manage it, offer as much as you can right at the start. There are many assistance programs for down payments that might boost your offer and put you on track for paying down your mortgage early.

Also, realize that first-time homebuyers — who can be anyone who has not owned a principal residence in the past three years, and some others — often have access to down payment assistance.

3. Choosing a Shorter Home Loan Term

Obviously, if you want to pay your mortgage off in a shorter amount of time, you can consider choosing a shorter home loan term; most conventional mortgages are paid off over 30 years, though it’s possible to find loans with 15- or even 10-year terms. Just remember your monthly payment will be higher on a shorter-term loan.

4. Making Larger or More Frequent Payments

One of the most achievable ways for most borrowers to pay off a home loan early is to pay more than the monthly minimum, either by adding extra toward the principal in the monthly payment or by paying more than once per month.

Unless you’re due for a six-figure windfall, chipping away at the debt this way might be the smartest option. But how does one come up with the additional money to funnel toward that goal?

5. Spending Less on Other Things

As with most debt repayment strategies, chances are you’ll need to find other ways to cut back on spending in order to set aside more money to put toward the mortgage. This could be as small as bringing your lunch from home instead of getting takeout or as serious as choosing to give up a car. “Combat the urge to impulse spend by instituting a holding period on all purchases. Before hitting the buy button, wait 24 to 48 hours. After the holding period, come back to the shopping cart and reevaluate. In some cases, you might not even remember why you wanted it in the first place,” says Brian Walsh, CFP® and Head of Advice & Planning at SoFi.

6. Increasing Income

Another option, if there’s just nothing left to cut? Finding ways to increase your income, perhaps by starting a side hustle or asking for that long-overdue raise.


💡 Quick Tip: A Home Equity Line of Credit (HELOC) brokered by SoFi lets you access up to $500,000 of your home’s equity (up to 90%) to pay for, well, just about anything. It could be a smart way to consolidate debts or find the funds for a big home project.

How Much House Can You Afford Quiz

The Takeaway

Pay off a mortgage in five years? While paying off your home loan early could help you save money on interest, sometimes the money is better spent on other financial goals and projects. So it pays to take a close look at the numbers, just as you did when you got your mortgage in the first place.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

Can I really pay off a mortgage in five years?

Whether or not you can pay off a mortgage in five years depends on the size of both your home loan and your income, as well as your other debts. It is certainly possible to pay off a loan in five years, but it might not be the best use of your money. If paying off your mortgage prevents you from paying off other higher-interest debt, or if you might earn more by investing the money than you would save on interest, paying off the mortgage may not be the smartest move.

Do I have to refinance if I want to pay off my mortgage in five years?

You don’t have to refinance in order to pay off your mortgage in five years. Borrowers can usually make extra lump-sum payments to the principal on their home loan to chip away at what they owe without refinancing.

Should you pay off your mortgage before you retire?

It might seem like a good idea to pay off your mortgage before retiring — after all, you’ll be on a fixed income and a loan payment can be a large monthly bill. But if you have limited savings, you might not want to tie it up by putting it toward your loan payoff. And if the money you would use to pay off your home loan might earn more if invested somewhat conservatively, you might be better off sticking with your loan for now.

Photo credit: iStock/fizkes

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SOHL0124025

Getting mortgage preapproval can give you an edge in the home-buying process, especially when the housing market is tight. A mortgage preapproval from a lender lets sellers know that you have tentatively been approved for a specific loan type and amount. Not only does this show them that you’re a serious home shopper, it also helps give you a good sense of your budget as you go house-hunting.

Here, you’ll learn the ins and outs of how to get preapproved for a home loan.

What Is Mortgage Preapproval?

Mortgage preapproval involves a thorough review of your credit and financial history. If you look like a good candidate for a mortgage, a lender will issue a letter stating that you qualify for a loan of a certain amount at a certain interest rate. The letter is an offer — but not a commitment — to lend you a specific amount. It’s good for up to 90 days, depending on the lender.

You’ll want to shop for homes within the price range of your preapproved mortgage. Armed with your preapproval for a home loan, you can show sellers that you are a serious buyer with the means to purchase a property. In the eyes of the seller, preapproval can often push you ahead of other potential buyers who have not yet been approved for a mortgage and make it easier to compete when there are multiple offers on a house.

Once you find a house that you want to buy, you can make an offer immediately based on the loan amount for which you are preapproved. And if the seller accepts, it will be time to finalize your mortgage application. At this point, a loan underwriter will review your application and conduct other due diligence measures, such as having the house appraised to make sure it is valued at the price it’s selling for. If all goes well, the lender will issue another letter called a commitment letter, which officially seals the deal on your loan, and you can schedule a closing date.

When Should I Get Preapproved for a Home Loan?

Preapproval typically lasts for 90 days, at most, so you want to seek it when you are actively in the market for a new home. Maybe you’ve done some initial online research into available properties. Ideally, you’ve also had a good look at your finances and thought about how much you have available to spend on a down payment as well as what monthly mortgage payments you can afford long-term. It takes around 10 days after you submit a request to be preapproved, so factor that timing into your house search as well.

Mortgage Preapproval vs. Prequalification

If you are house hunting, you will likely hear two different terms regarding early mortgage moves: prequalification vs. preapproval. Prequalification is a simple, less involved look at your financial qualifications for a mortgage. Preapproval for a home loan is a more in-depth review of your finances and an indicator that your loan application will likely move forward smoothly. Each has its advantages — and its moment.

Mortgage Prequalification

Getting prequalified for a home loan involves a review of a few financial details — usually self-reported — such as income, assets, and debt. The lender will then estimate what size mortgage you can afford.

Pros of Mortgage Prequalification

•   It’s fast. The process can often be done in minutes, by phone or online.

•   You’ll zero in on house prices. Prequalifying for a home loan quickly gives you an idea of what your monthly payment might be and how much house you can afford.

•   You can shop around. You can prequalify with multiple lenders to see what types of terms and interest rates they offer.

•   It’s easy on your credit score. Prequalification will not affect your credit score because it only requires a “soft inquiry” into your credit record.

Cons of Mortgage Prequalification

•   It’s no guarantee. Because it is an unverified, high-level look at your finances, prequalification doesn’t ensure that you will actually qualify for a mortgage.

•   It won’t help you bargain. Being prequalified won’t help you negotiate a lower price with a seller or compete against other bidders in a competitive market.

Mortgage Preapproval

Requesting a mortgage preapproval is a more complicated process than getting prequalified. You’ll have to fill out an application with your chosen lender and agree to a credit check. The credit check will be a “hard pull” which will ding your credit score by a few points. You’ll also provide information about your income and assets. The evaluation process can take 10 days or more. Again, preapproval doesn’t mean it’s a done deal that you’ll get the loan, but it is a solid indication of your financial situation and ability to purchase a home.

There are a number of advantages to getting preapproval for a home loan, especially if you’re shopping in a fast-moving market.

Pros of Mortgage Preapproval:

•   It gives you an edge. Sellers will see that you are a serious buyer and have assurance that your financing won’t fall through and sink the deal.

•   It helps you get loan shopping done. When you’ve found your dream house, you don’t want to delay putting in an offer because you have to spend time getting your documents together and pursuing a loan. Going through the preapproval process helps you take care of these details before you’re in a fast-moving situation.

Cons of Mortgage Preapproval:

•   A mortgage preapproval expires. How long does a mortgage preapproval last? As noted above, the letter is only good for a certain period of time, usually 90 days, so you’ll want to make sure you’re seriously ready to start shopping once you have your mortgage preapproval in hand.

•   The application is time-consuming. You’ll need to provide a lot of documentation to get a mortgage preapproval and agree to a hard credit inquiry, which can drag down your credit score, though usually only by a bit.

•   Nothing is guaranteed. Even though your home loan preapproval letter likely has details on your loan amount and type, it is only a tentative approval — you still can’t be 100% sure that you will get the loan.

Here are the basic comparison points of prequalification vs. preapproval:

Steps to Get Preapproved for a Home Loan

Getting preapproved for a home loan will take some time, so it’s good to get the process started before you are ready to make an offer on a home. Here are some important steps along the way.

Check Your Credit Score

If you’ve established a credit history, a first step before applying for a mortgage is to check your credit reports, which are a history of your credit compiled from sources like banks, credit card companies, collection agencies, and the government.

The information is collected by the three main credit reporting bureaus: TransUnion®, Equifax®, and Experian®. You’ll want to make sure that the information on your credit reports is correct. Ordering the reports is free once a week through AnnualCreditReport.com.

If you find any mistakes in your credit reports, contact the credit reporting agencies immediately to let them know. You don’t want any incorrect information weighing down your credit score, putting your chances for preapproval at risk.

The free credit reports provided by the nationwide credit reporting agencies do not include your credit score, a number typically between 300 and 850. You can purchase your score directly from the credit reporting agencies, or from FICO®. Your credit card company also may provide your credit score for free, or you could try a money tracker app that updates your credit score weekly and tracks your spending at no cost.

Calculate Your Potential Mortgage

To help with the prequalification and preapproval process, use the mortgage calculator below to see what your estimated monthly mortgage would be based on down payment, interest rate, and loan terms.

Gather Documentation

Your credit score is only one of many factors a potential lender will consider when deciding on your mortgage qualification. So collect the many other documents you will need to paint a full picture of your financial life. Ask the lender what is needed, specifically. The list will likely include:

•   Recent pay stubs

•   Recent bank and investment account statements

•   Two years of tax returns and/or W2s, possibly more if you are self-employed

•   Verification of alimony or child support payments received and the court documents spelling out the terms of the payments

•   Social Security award letter, if you derive income from Social Security

•   Certificate of Eligibility from the VA, if you are applying for a VA loan

•   Gift letter documenting any money you are receiving from family or other sources toward a down payment

Receive Your Mortgage Preapproval Letter

Your first instinct when you receive preapproval will likely be to jump for joy. But next, take a moment to ask the lender if they made any assumptions about your finances in order to issue the letter, or if they flagged anything that could lead to you being denied a mortgage later on or that could increase your costs. Doing this could help you head off future problems that might scuttle a deal.

Upping Your Odds of Mortgage Preapproval

There are a number of steps you can take to improve your chances of preapproval or to increase the amount your lender may approve you for.

Build Your Credit

When you apply for any type of loan, lenders want to see that you have a history of properly managing your debt before they offer you credit themselves.

You can build your credit history by opening and using a credit card and paying your bills on time. Or you could consider having regular payments, such as your rent, tracked and added to your credit score.

Recommended: What Credit Score Is Needed to Buy a House?

Stay on Top of Debt

Your ability to pay your bills on time has a big impact on your credit score. If your budget allows, you should aim to make payments in full.

If you have any debts that are dragging down your credit score — for example, debts that are in collection — it’s smart to work on paying them off first, as this could help build your score.

“Really look at your budget and work your way backwards,” explains Brian Walsh, CFP® at SoFi, on planning for a home mortgage.

Recommended: Fixed-Rate vs. Adjustable-Rate Mortgages

Watch Your Debt-to-Income Ratio

Your debt-to-income (DTI) ratio is your monthly debt payments divided by your monthly gross income. If you have $1,000 a month in debt payments and make $5,000 a month, your DTI ratio is $1,000 divided by $5,000, or 20%.

Mortgage lenders typically like to see a DTI ratio of 36% or less. Some may qualify borrowers with a higher DTI, up to 43%. Lenders may assume that borrowers with a high DTI ratio will have a harder time making their mortgage payments.

If you’re seeking preapproval for a mortgage, it may be beneficial to keep the ratio in check by avoiding large purchases. For example, you may want to hold off on buying a new car until you’ve been preapproved.

Prove Consistent Income

Your lender will want to know that you have enough money coming in each month to cover a potential mortgage payment, so the lender will likely want proof of consistent income for at least two years (that means pay stubs, W-2s, etc.).

For some potential borrowers, such as freelancers, this may be a tricky process since they may have income from various sources. Keep all pay stubs, tax returns, and other proof of income, and be prepared to show those to your lender.

What Happens If Your Mortgage Preapproval is Rejected?

Rejection hurts. But if you aren’t preapproved or you aren’t approved for a large enough mortgage to buy the house you want, you also aren’t powerless. You can ask the lender why it said “no.” This will give you an idea about what you might need to work on in order to secure the mortgage you want.

Then you may want to work on the factors that your lender saw as a sticking point to preapproval. You can continue to work to build your credit score, lower your DTI ratio, or save for a higher down payment.

If you’re able to pay more upfront, you will typically lower your monthly mortgage payments. Once you’ve worked to make yourself a better candidate for a mortgage, you can apply for preapproval again.

Dream Home Quiz

The Takeaway

In a competitive market, having a mortgage preapproval letter in hand may give a house hunter an edge. After all, the letter states that the would-be buyer tentatively qualifies for a home loan of a certain amount.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

What happens during the preapproval process?

During the mortgage preapproval process, you’ll provide lots of background information on your finances. A potential lender will also check your credit score. If the lender feels you’re a suitable candidate for a loan, you’ll receive a letter that you can show a seller to potentially better your chances when making an offer on a home.

Do preapprovals hurt your credit score?

The lender will do a “hard pull” to obtain your credit score prior to a preapproval. This may cause your rating to drop by a few points, but it should rebound quickly if you pay your bills on time.

How far in advance should I get preapproved for a mortgage?

Get preapproved for a mortgage when you have a sense of the housing costs where you are shopping for a home, and you are ready to start looking in earnest.

Which is better: preapproval or prequalification?

Prequalification and preapproval each have a place in the homebuying process. Prequalification is helpful when you are trying to get a sense of what you can afford and which lender might offer the best terms. It’s time for preapproval when you are serious about searching for a home and have researched possible lenders.

Is it OK to get multiple preapprovals?

You only need one preapproval, but it is fine to get a few if you want to see what loan amounts and rates you might qualify for. Make all applications within a 45-day window — the time frame during which multiple lenders can check your credit without each check having an additional impact on your score.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

^†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SOHL-Q225-048

When you’re buying a home, one of the questions you might be asking is, “How does buying a house affect taxes?” The short answer? Buying a home could reduce your overall tax liability if you itemize deductions and pay a large amount of mortgage interest.

There are other conditions that need to be met, and it is possible that the amount of tax you owe will stay the same. Of course, it’s always best to consult with a tax advisor for your individual situation.

To give you a general idea about how buying a home in 2025 affects taxes, we’ve compiled everything you need to know about how tax breaks work, what you can deduct, and whether or not it will make sense to itemize deductions.

Does Buying a House Help With Taxes?

It’s possible that buying a house can help with taxes — but only for tax filers who itemize their deductions. In 2020, the most recent year with data available, approximately 90% of Americans took the standard deduction rather than itemizing. This signals that it may be unlikely you’ll have enough deductions for itemizing to make sense. Of course, if it can reduce your taxes, it’s worth looking into.

You might also be wondering, “How does buying a house in cash affect taxes?” If you don’t have a mortgage, you’re not paying interest, so you’re not able to take the home mortgage interest deduction. But you’re still able to deduct property taxes if you itemize. Remember to consider this even if your property taxes are part of your mortgage payments.

How Do Homeowner Tax Breaks Work?

Tax breaks start as Congressional bills passed into law and funded by the U.S. Congress. However, it is up to individual homeowners to find and file the correct paperwork to take advantage of these tax breaks.

Tax breaks come to homeowners as either tax credits or tax deductions.

Recommended: First-Time Homebuyer Programs

The Difference Between Tax Deductions and Tax Credits

The difference between a tax deduction and a tax credit is where it appears on IRS form 1040 and how much it reduces your final tax bill or refund. This will make more sense after we explain each.

Deductions On IRS Form 1040, deductions are compiled before being subtracted from your income. This is done before tax is calculated, so having deductions can reduce the overall amount of tax you owe. But because a deduction comes before tax is calculated, the reduction in tax liability is generally less than if the amount of tax owed was directly reduced by a credit (though this depends on the amount of each).

Credits Credits are subtracted from the amount of tax you owe. If you don’t owe tax but are instead receiving a tax refund, credits can increase the amount of money coming your way from the IRS. Generally speaking, credits put more money back in your pocket. You may have heard about a first-time homebuyer tax credit. A bill that would have provided for this benefit was introduced in 2021 and again in 2024, but as of July 2025 it had not passed into law.

Deductions are more common; however, with the revamp of the tax code in 2017 with the Tax Cuts and Jobs Act, the standard deduction was increased substantially and fewer people find the need to itemize. The One Big Beautiful Bill’s passage in July 2025 made that increase permanent and enhanced it slightly. Nevertheless, it’s probably a good idea to add “keep track of possible tax deductions” to your list of New Year’s financial resolutions.

What Are the Standard Deduction Amounts for 2025?

It’s important to know the standard deduction amounts so you know if taking the home mortgage loan interest deduction will make financial sense for you.

•   For single filers: $15,570

•   For head of household: $23,6325

•   For married people filing jointly: $31,500

If the amount of mortgage interest you pay is far below the threshold for choosing the standard deduction, you may not be able to find enough deductions for itemizing to make sense. The increased standard deduction in 2017 made this especially true, but there are certain scenarios where you should still itemize deductions.

Recommended: What Is a Gift Tax Return and When Is It Due?

Who Should Itemize Deductions

You should itemize deductions if the total amount of your deductions is more than the standard deduction. If you are in any of the following situations, you may have enough qualified deductions for itemizing to make sense.

•   If you have large medical or dental expenses that are not paid for by an insurance company

•   If you paid a large amount of interest on your mortgage

•   If you donated large sums to charity

•   If you can claim a disaster or theft loss

•   If you cannot take the standard deduction

•   If you can qualify for large amounts of the “other itemized deductions” found on the IRS forms

It’s hard to say if your individual situation will mean that itemizing deductions makes sense. It may be worth it to consult with a tax professional.

Which Home Expenses Are Tax Deductible?

When you’re looking for home expenses that are tax-deductible, the IRS defines it very narrowly. The costs that are deductible include:

•   State and local real estate property taxes up to $40,000 in 2025. This amount will reset annually to 101% of the previous year’s amount until 2030, when it will return to $10,000.

•   Home equity loan interest if you used the funds from a home equity loan to buy, build, or substantially improve your property. Note that eligible home equity loan interest is considered part of your mortgage interest and contributes to the totals for that deduction (below).

•   Mortgage interest deduction up to defined limits:

◦   For loans taken out after December 15, 2017: You can deduct home mortgage interest on the first $750,000 of debt or the first $375,000 of debt for a married person filing separately.

◦   For loans taken out on or prior to December 15, 2017: You can deduct home mortgage interest on the first $1,000,000 of debt or the first $500,000 for a married person filing separately.

Which Home Expenses Are Not Tax Deductible?

Most home expenses, unfortunately, are not tax deductible. These include things to budget for after buying a home. The IRS specifically outlines these living expenses that cannot be claimed as a deduction:

•   Utility expenses, like gas, water, electricity, garbage, sewer, internet, etc.

•   Home repairs

•   Insurance

•   Homeowners association or condo fees

•   Cost of domestic help

•   Down payment and earnest money

•   Closing costs

•   Depreciation

Potential tax deductions are one thing to factor into your financial considerations as you think about whether you are ready to buy a home, but they certainly aren’t what should be driving your decision to make a purchase.

How Much House Can You Afford Quiz

The Takeaway

It is possible for the amount of tax you owe to be lower after you become a homeowner — but only if certain conditions are met. You’ll want to do the math and compare what your taxes will look like when you itemize deductions vs. when you take the standard deduction. That will be the best way to tell how buying a house will affect your taxes.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

What is the tax break for buying a house in 2025?

If you itemize deductions on your federal return, you can claim a deduction for your mortgage interest paid on a home bought in 2025, along with state and local taxes paid in 2025.

Will my tax return be higher if I bought a house?

While there are a lot of factors that go into a tax return, generally speaking, if the deductions that come from homeownership reduce your tax liability compared to previous years while all other factors remain the same, then you should owe less (or even get money back).However, you will likely have to pay property tax.

How does buying a house with cash affect taxes?

If you buy your home with cash, you won’t be able to utilize the mortgage interest tax deduction. However, since you will also not be paying any interest, that may not be significant enough to warrant getting a mortgage if you can afford not to. Consult your tax advisor to see what makes the most sense for you.

Photo credit: iStock/marchmeena29

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

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For many homebuyers, safety is a top concern when shopping for a house. It can influence where you feel comfortable living, and safety ratings can have a big effect on local housing market trends.

If you’re in the market to buy or rent a home and you’re looking for just the right spot, check out this list of the 50 safest cities from NeighborhoodScout.

How Is the Safest Cities List Determined?

To compile its list of the safest cities, NeighborhoodScout looks at FBI statistics for property and violent crime in cities across the country that have a population of 25,000 or more. This list now includes areas with a township form of government, which has resulted in a larger pool of locations and many newcomers to the list. (See the full list of 100 safest cities on the NeighborhoodScout site.)

💡 Quick Tip: Buying a home shouldn’t be aggravating. SoFi’s online mortgage application is quick and simple, with dedicated Mortgage Loan Officers to guide you through the process.

What Are the Safest Cities in the US?

The safest cities in America tend to be suburban areas close to major cities like Boston. Only one spot on this list, Rexburg, Idaho, is outside a major metropolitan area.

Massachusetts is home to the most cities on the list at 18. Texas, with six cities on the list, ranks in second place.

Recommended: Price-to-Rent Ratio in 50 Cities

The 50 Safest US Cities in 2025

Here’s a countdown of the 50 safest cities in the U.S. that you could call home. Consider safety, along with local housing market trends, if you’re thinking about relocating.

50. Friendswood, Texas

Friendswood began as a Quaker town in 1895 and became known for growing and preserving Magnolia figs. Since the 1950s, it has transformed into a quiet bedroom community 30 minutes from Houston and Galveston.

Population: 41,004

Total Crime Rate (per 1,000 residents): 6.5

Chance of Being a Victim: 1 in 152

Major City Nearby: Houston

49. Newton, Massachusetts

A strong school system and proximity to downtown Boston draw homebuyers to this suburban community, which is actually a cluster of 13 villages.

Population: 87,453

Total Crime Rate (per 1,000 residents): 6.5

Chance of Being a Victim: 1 in 152

Major City Nearby: Boston

48. Prosper, Texas

This growing town in the Dallas area is known for great schools and beautiful scenery. Texas has no state income tax, which may be a draw for many homebuyers, although it does have a sales tax and property taxes may be higher than in some other areas.

Population: 34,136

Total Crime Rate (per 1,000 residents): 6.4

Chance of Being a Victim: 1 in 155

Major City Nearby: Dallas

47. Dracut, Massachusetts

Dracut was home to Pennacook Indian settlements before Europeans arrived in the 1650s, and the town’s early economy depended on manufacturing and milling. The town provides easy access to the Lowell and Boston metropolitan areas.

Population: 32,159

Total Crime Rate (per 1,000 residents): 6.4

Chance of Being a Victim: 1 in 155

Major City Nearby: Boston

46. Shrewsbury, Massachusetts

Shrewsbury was incorporated in 1727 and rests just outside the Boston metropolitan area near the city of Worcester. Although the violent crime rate has risen in recent years (while the property crime rate has declined), it is still one of the safest places to live in the U.S.

Population: 38,999

Total Crime Rate (per 1,000 residents): 6.4

Chance of Being a Victim: 1 in 156

Major City Nearby: Worcester

45. Keller, Texas

Settled in the 1850s and named for a railroad foreman, Keller today blends urban amenities with a small-town emphasis on quality of life for its residents. The lovely Big Bear Creek Trail cuts through the city, ensuring access to a natural setting.

Population: 45,397

Total Crime Rate (per 1,000 residents): 6.3

Chance of Being a Victim: 1 in 158

Major City Nearby: Dallas

44. Rochester Hills, Michigan

This Detroit suburb features the 102-acre Avon Nature Study Area on the Clinton River and the Rochester Hills Museum, where visitors can learn about pioneer farmers, Native American history, and local ecology.

Population: 76,028

Total Crime Rate (per 1,000 residents): 6.2

Chance of Being a Victim: 1 in 160

Major City Nearby: Detroit

43. Beverly, Massachusetts

Beverly is a suburb of Boston on the North Shore of Massachusetts, just north of Salem. Like its witchy neighbor, Beverly offers historic New England architecture and water access.

Population: 42,446

Total Crime Rate (per 1,000 residents): 6.2

Chance of Being a Victim: 1 in 161

Major City Nearby: Boston

42. North Kingstown, Rhode Island

Sailboats bob on the water in this pretty Narragansett Bay town. A cluster of villages, the town was settled in the 17th century and boasts some buildings from that era, as well as the Silas Casey Farm, which is maintained as a classic New England farmstead.

Population: 27,911

Total Crime Rate (per 1,000 residents): 6.1

Chance of Being a Victim: 1 in 162

Major City Nearby: Providence

41. Ballwin, Missouri

This West St. Louis town, home to high-quality public schools, is located within 30 minutes of five universities and colleges. It has a diverse array of housing options at many price points.

Population: 30,870

Total Crime Rate (per 1,000 residents): 6.1

Chance of Being a Victim: 1 in 162

Major City Nearby: St. Louis

40. Melrose, Massachusetts

Another suburb of Boston, Melrose was first known as Ponde Fielde due to its many ponds and streams. The charming Downtown Melrose, known for its Victorian architecture, is on the National Register of Historic Places.

Population: 29,312

Total Crime Rate (per 1,000 residents): 6.0

Chance of Being a Victim: 1 in 164

Major City Nearby: Boston

💡 Quick Tip: To see a house in person, particularly in a tight or expensive market, you may need to show the real estate agent proof that you’re preapproved for a mortgage. SoFi’s online application makes the process simple

39. Milton, Georgia

Milton has one of Georgia’s highest rates of educational attainment and lowest rates of unemployment. The majority of its 39 square miles are zoned for agriculture, so residential lots are large here, at least one acre.

Population: 41,259

Total Crime Rate (per 1,000 residents): 5.9

Chance of Being a Victim: 1 in 167

Major City Nearby: Atlanta

38. Commerce Township, Michigan

Commerce Township boasts easy access to lots of lakes, although not all are accessible to the public. If waterfront living is a goal, there are many options here, from smaller, older cottages to spacious new homes.

Population: 38,718

Total Crime Rate (per 1,000 residents): 5.9

Chance of Being a Victim: 1 in 169

Major City Nearby: Detroit

37. Wylie, Texas

Once known as the “Onion Capital of the World,” Wylie is a fast-growing community with strong schools and abundant recreation opportunities for families.

Population: 59,394

Total Crime Rate (per 1,000 residents): 5.9

Chance of Being a Victim: 1 in 169

Major City Nearby: Dallas

36. Waltham, Massachusetts

Nicknamed “the watch city” because it was home to an early watch factory, this diverse Boston suburb dates from the 17th century. Today, it is home to both Bentley University and Brandeis University.

Population: 64,015

Total Crime Rate (per 1,000 residents): 5.8

Chance of Being a Victim: 1 in 169

Major City Nearby: Boston

35. Merrimack, New Hampshire

Options abound in Merrimack. Within an hour, you can get to busy Boston, hike in the beautiful Kearsarge Mountain State Forest, or take a dip at Hampton Beach State Park on the Atlantic coast.

Population: 27,132

Total Crime Rate (per 1,000 residents): 5.7

Chance of Being a Victim: 1 in 172

Major City Nearby: Manchester

34. Little Elm, Texas

A suburban vibe and easy access to parks and lakes, including an entertainment district on the shores of Lake Lewisville, would make this an appealing place to live even if crime rates weren’t so exceptionally low.

Population: 51,042

Total Crime Rate (per 1,000 residents): 5.6

Chance of Being a Victim: 1 in 176

Major City Nearby: Dallas

33. Edwardsville, Illinois

Edwardsville may be in Illinois, but it is a suburb of St. Louis and benefited from proximity to Route 66 as it grew. Among the oldest cities in Illinois, it has produced five of the state’s governors.

Population: 25,218

Total Crime Rate (per 1,000 residents): 5.5

Chance of Being a Victim: 1 in 178

Major City Nearby: St. Louis

32. Andover, Massachusetts

Andover, about 23 miles north of Boston, was incorporated in 1646 and later became a thriving mill town. The city is home to prestigious college prep school Phillips Academy.

Population: 36,517

Total Crime Rate (per 1,000 residents): 5.4

Chance of Being a Victim: 1 in 182

Major City Nearby: Boston

31. Cumberland, Rhode Island

Cumberland boasts a lovely bike trail which is part of a continuous 31.9-mile route. Its unique public library is built on the site of a former monastery, with tranquil walking paths and has offered, in the summer, a free “Music at the Monastery” concert series.

Population: 36,434

Total Crime Rate (per 1,000 residents): 5.4

Chance of Being a Victim: 1 in 184

Major City Nearby: Providence

30. Brandon, Mississippi

This city may be approaching its 100th birthday, but it is one of the fastest-growing cities in Mississippi.

Population: 25,373

Total Crime Rate (per 1,000 residents): 5.3

Chance of Being a Victim: 1 in 186

Major City Nearby: Jackson

29. Mundelein, Illinois

Less than an hour west of Chicago, Mundelein offers well-priced housing and a strong school system. Top employers are industrial and manufacturing companies, but the village also offers easy access to the Windy City.

Population: 31,560

Total Crime Rate (per 1,000 residents): 5.3

Chance of Being a Victim: 1 in 187

Major City Nearby: Chicago

28. Wellesley, Massachusetts

West of Newton, Wellesley is a much smaller municipality, though the median household income is higher, at $250,001, and the homeownership rate tops 80%.

Population: 30,191

Total Crime Rate (per 1,000 residents): 5.2

Chance of Being a Victim: 1 in 189

Major City Nearby: Boston

Recommended: Cost of Living by State

27. North Andover, Massachusetts

Massachusetts makes a good showing on the safest cities list, representing nearly 30% of the burgs listed.

Population: 30,711

Total Crime Rate (per 1,000 residents): 5.2

Chance of Being a Victim: 1 in 190

Major City Nearby: Boston

26. Reading, Massachusetts

Another Boston suburb just north of the city, Reading is a town of about 9,374 households with a median household income around $163,725.

Population: 25,223

Total Crime Rate (per 1,000 residents): 5.1

Chance of Being a Victim: 1 in 192

Major City Nearby: Boston

25. Mason, Ohio

Mason is the largest city in Warren County. The county is known as “Ohio’s Largest Playground” and boasts regional attractions including the Grizzly Golf and Social Lodge, the Great Wolf Lodge, and Kings Island amusement park.

Population: 35,089

Total Crime Rate (per 1,000 residents): 5.1

Chance of Being a Victim: 1 in 192

Major City Nearby: Cincinnati

24. Billerica, Massachusetts

Billerica sits on the Shawsheen and Concord rivers about 20 miles northwest of Boston and is home to about 15,653 households.

Population: 41,453

Total Crime Rate (per 1,000 residents): 5.1

Chance of Being a Victim: 1 in 195

Major City Nearby: Boston

23. Johns Creek, Georgia

The City of Johns Creek is a fairly young one, having been designated in 2006. But it is home to 200 companies and a thriving population.

Population: 82,065

Total Crime Rate (per 1,000 residents): 4.9

Chance of Being a Victim: 1 in 202

Major City Nearby: Atlanta

22. West Bloomfield, Michigan

This township less than 30 miles from Detroit has many small- and medium-sized lakes. West Bloomfield has a large Jewish population and is home to the J, formerly known as the Jewish Community Center of Metropolitan Detroit.

Population: 65,560

Total Crime Rate (per 1,000 residents): 4.9

Chance of Being a Victim: 1 in 204

Major City Nearby: Detroit

21. Colleyville, Texas

Conveniently sandwiched between the Dallas and Fort Worth areas, Colleyville offers a rural feel close to big-city amenities.

Population: 25,986

Total Crime Rate (per 1,000 residents): 4.8

Chance of Being a Victim: 1 in 206

Major City Nearby: Dallas

20. South Kingstown, Rhode Island

South Kingstown is home to two scenic beaches, as well as picturesque farmlands and a riverfront walkway.

Population: 31,851

Total Crime Rate (per 1,000 residents): 4.7

Chance of Being a Victim: 1 in 212

Major City Nearby: Providence

19. Windsor, Colorado

The only Colorado city on the list, Windsor, near the front range of the Rocky Mountains, once boasted giant herds of bison and a bustling sugar beet industry. Today, it is a hotbed of green industry, including windmill blade production and ethanol production.

Population: 35,788

Total Crime Rate (per 1,000 residents): 4.5

Chance of Being a Victim: 1 in 218

Major City Nearby: Greeley

18. Wakefield, Massachusetts

Residents of Wakefield enjoy easy commuter-rail service to Boston and recreational activities on and around scenic Lake Quannapowitt.

Population: 27,104

Total Crime Rate (per 1,000 residents): 4.5

Chance of Being a Victim: 1 in 218

Major City Nearby: Boston

17. Madison, Mississippi

This suburb of Jackson has a rural feel and a small-town atmosphere. It is a popular choice for retirees.

Population: 27,719

Total Crime Rate (per 1,000 residents): 4.5

Chance of Being a Victim: 1 in 221

Major City Nearby: Jackson

16. Avon Lake, Ohio

This suburb of Cleveland lies on the shore of Lake Erie. Ample parks, a bike trail, and an aquatic center ensure residents of all ages have plenty of options for fitness.

Population: 25,588

Total Crime Rate (per 1,000 residents): 4.3

Chance of Being a Victim: 1 in 232

Major City Nearby: Cleveland

15. White Lake, Michigan

Of the four Michigan cities on this list, White Lake ranks the safest.

Population: 30,990

Total Crime Rate (per 1,000 residents): 4.2

Chance of Being a Victim: 1 in 233

Major City Nearby: Detroit

14. Needham, Massachusetts

Like many of the Massachusetts cities on this list, Needham is a well-off bedroom community of Boston, with a median household income of about $212,241.

Population: 32,048

Total Crime Rate (per 1,000 residents): 4.2

Chance of Being a Victim: 1 in 233

Major City Nearby: Boston

13. Milton, Massachusetts

Milton, an attractive suburb 10 miles south of Boston, is the birthplace of former U.S. President George H.W. Bush.

Population: 28,388

Total Crime Rate (per 1,000 residents): 4.2

Chance of Being a Victim: 1 in 233

Major City Nearby: Boston

12. Oswego, Illinois

Located about 50 miles west of Chicago on the Fox River, Oswego lies on two rail lines and near three state highways and two U.S. highways. It has experienced rapid growth in recent years.

Population: 35,316

Total Crime Rate (per 1,000 residents): 4.1

Chance of Being a Victim: 1 in 238

Major City Nearby: Chicago

11. Independence, Kentucky

The only Kentucky town to make it to the list, Independence is a short drive across the Ohio River to Cincinnati.

Population: 28,920

Total Crime Rate (per 1,000 residents): 3.9

Chance of Being a Victim: 1 in 253

Major City Nearby: Cincinnati

10. Rexburg, Idaho

Rexburg, in eastern Idaho, is one of the only cities on this list that’s not near a major metropolitan area. Its proximity to nature is one of its calling cards. Yellowstone National Park is just 80 miles away.

Population: 35,300

Total Crime Rate (per 1,000 residents): 3.9

Chance of Being a Victim: 1 in 253

Major City Nearby: N/A

9. Muskego, Wisconsin

This cozy city sits within the orbit of Milwaukee and is around 88 miles from Chicago.

Population: 25,242

Total Crime Rate (per 1,000 residents):3.8

Chance of Being a Victim: 1 in 265

Major City Nearby: Milwaukee

8. Lexington, Massachusetts

Known as the town where the first shots of the Revolutionary War were fired, Lexington is a suburb of Boston where the median household income tops $200,000.

Population: 34,071

Total Crime Rate (per 1,000 residents):3.7

Chance of Being a Victim: 1 in 270

Major City Nearby: Boston

7. Zionsville, Indiana

Excellent schools and stable home values attract residents looking for a small-town feel just 20 minutes outside Indianapolis.

Population: 31,702

Total Crime Rate (per 1,000 residents):3.6

Chance of Being a Victim: 1 in 275

Major City Nearby: Indianapolis

6. Fulshear, Texas

Fulshear has grown significantly in size in the 21st century, though it has retained its small-town charm.

Population: 25,169

Total Crime Rate (per 1,000 residents): 3.6

Chance of Being a Victim: 1 in 276

Major City Nearby: Houston

5. Arlington, Massachusetts

Settled in 1635 as the town of Menotomy, Arlington was renamed in 1867 in honor of those buried at Arlington National Cemetery. The city is about six miles from Boston.

Population: 45,617

Total Crime Rate (per 1,000 residents): 3.4

Chance of Being a Victim: 1 in 292

Major City Nearby: Boston

4. Marshfield, Massachusetts

Marshfield is about 30 miles from Boston on the South Shore where Cape Cod meets the Massachusetts Bay. The year-round population grows to 40,000 in the summer months.

Population: 25,869

Total Crime Rate (per 1,000 residents): 3.3

Chance of Being a Victim: 1 in 300

Major City Nearby: Boston

3. Lake in the Hills, Illinois

Once a sleepy rural community home to seasonal residents who enjoyed the area’s lakes, Lake in the Hills became a quickly growing suburb of Chicago in the last few decades.

Population: 28,945

Total Crime Rate (per 1,000 residents): 3.1

Chance of Being a Victim: 1 in 321

Major City Nearby: Chicago

2. Franklin, Massachusetts

Franklin is conveniently located between Boston and Providence, Rhode Island. The town is named in honor of Benjamin Franklin, whose donated books formed the first public library in the country.

Population: 33,036

Total Crime Rate (per 1,000 residents): 2.9

Chance of Being a Victim: 1 in 344

Major City Nearby: Boston

1. Ridgefield, Connecticut

This pretty colonial town nestled in the foothills of the Berkshire Mountains was founded over 300 years ago and today ranks as America’s safest city. Visitors come for its historic Main Street. Families stay for its strong schools and, of course, its excellent safety rating.

Population: 25,011

Total Crime Rate (per 1,000 residents): 1.9

Chance of Being a Victim: 1 in 510

Major City Nearby: Bridgeport

The Takeaway

It’s a safe bet that house hunters will find many of these 50 safest cities in the U.S. appealing. There’s a lot to like about these towns in addition to their low crime rates, including great schools, high-quality housing stock, and natural wonders.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

What is the No. 1 safest town?

Safety can be tricky to gauge, but Ridgefield, Connecticut, was recently named America’s safest town by NeighborhoodScout.

What is America’s happiest city?

Happiness is highly subjective. However, a 2025 WalletHub analysis that looked at 25 key happiness indicators found that Fremont, California, ranked highest.

What U.S. city has the highest quality of life?

Quality of life can mean different things to different people, but overall, Brookline, Massachusetts, ranked highest in a 2025-2026 evaluation by U.S. News & World Report. The publication’s annual Quality of Life index looks at factors like quality of education, average commute time, health care availability and quality, and others to rank U.S. cities.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

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