How Quickly Can You Save Your Down Payment

Dated: 05/03/2019

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Don't forget to ask me about my First Time Home Buyer Program...360's 1st HOPP. I could help you keep your savings and buy sooner!!

How Quickly Can You Save Your Down Payment? | Simplifying The Market

How Quickly Can You Save Your Down Payment?

   Down Payments, First Time Home Buyers, For Buyers, For Sellers,Housing Market Updates, Move-Up Buyers

Saving for a down payment is often the biggest hurdle for a first-time homebuyer. Depending on where you live, median income, median rents, and home prices all vary. So, we set out to find out how long it would take to save for a down payment in each state.

Using data from HUD, Census and Apartment List, we determined how long it would take, nationwide, for a first-time buyer to save enough money for a down payment on their dream home. There is a long-standing ‘rule’ that a household should not pay more than 28% of their income on their monthly housing expense.

By determining the percentage of income spent renting in each state, and the amount needed for a 10% down payment, we were able to establish how long (in years) it would take for an average resident to save enough money to buy a home of their own.

According to the data, residents in Kansas can save for a down payment the quickest, doing so in just over 1 year (1.12). Below is a map that was created using the data for each state:

How Quickly Can You Save Your Down Payment? | Simplifying The Market

What if you only needed to save 3%?

What if you were able to take advantage of one of Freddie Mac’s or Fannie Mae’s 3%-down programs? Suddenly, saving for a down payment no longer takes 2 to 5 years, but becomes possible in less than a year in most states, as shown on the map below.

How Quickly Can You Save Your Down Payment? | Simplifying The Market

Bottom Line

Whether you have just begun to save for a down payment or have been saving for years, you may be closer to your dream home than you think! Let’s get together to help you evaluate your ability to buy today.



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Jenifer Vigil

Jenifer Vigil is the Employing broker for 360 Real Estate Inc. Jenifer’s expertise, professionalism, marketing and real estate skills allow her to provide 360′s agents with unsurpassed management ....

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