Nerdwallet

2020 FHA loan limit — the maximum loan amount the FHA will guarantee — is $575,000 for a single-family property across most of the metro area. Looking at 2019 data from the Denver Metro Association of Realtors, that’s enough to cover the steep average sale price of $515,149 for a single-family home. But buyers there could save substantially by looking at condos, which have an average sale price of $366,937.

You’ll want to budget for condo homeowner association fees as well as property taxes. But generally, opening up your search to include condos should bring you lower-priced options.

Found a fixer-upper? Get FHA 203(k) loan

In markets with older housing stock, passing an FHA appraisal could be a bigger obstacle than cost. Listing photos that make a low-priced house look like a charming fixer-upper can conceal major issues, Corning, New York, real estate agent Jennifer M. Baker noted in an email.

An appraiser’s key objective is ensuring the property is a sound investment for your lender. But an FHA appraisal isn’t just about value. To be eligible for an FHA loan, the home must also meet the FHA’s minimum property requirements by being “safe, sound and secure.”

If you see potential in a house that won’t pass an FHA appraisal, an FHA 203(k) loan could help you afford the needed work. It has similar requirements to a regular FHA home loan, but the costs of renovating the property are rolled into the total mortgage amount, which is based on the “as is” appraisal and an estimate of the home’s value once the renovation is complete. Using a 203(k) might mean living in a rental a little bit longer — costs you can include in your new home loan — or in a construction zone. Either way, you’re turning a house into your home.

Facing stiff competition? Be flexible

There are affordable homes out there, but with many buyers competing for them, it’s a seller’s market.

“When a home goes on the market up to about $250,000, we’ll see an actual race to get to that home,” says Michelle Sloan, broker and owner of Re/ Max Time near Cincinnati. “We’ve seen up to 10 offers within 24 hours of a property being listed.”

Though you can use strategies to make your offer more attractive — like being flexible on the closing date — you may also be able to find more options by changing your home search criteria.

A short commute may be a high priority, Sloan says, but allowing for a little added drive time could get you more potential properties. If you’re wedded to a particular location — for the schools, maybe — try to whittle down your wish list. Maybe three bedrooms will work instead of four.

An experienced buyer’s agent can help you weigh possible trade-offs, supply insight into your local market and encourage you throughout the process.

You may not get the first home you submit an offer for — or even the fifth — but “keep looking,” Sloan recommends. “There is a home out there for everyone!”