Save For A Down Payment Faster Than You Think

Dated: 04/10/2018

Views: 27

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 the United States Census Bureau and Zillow, 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 Ohio can save for a down payment the quickest in just under 3 years (2.44). Below is a map that was created using the data for each state:


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 5 or 10 years, but becomes possible in a year or two in many states as shown on the map below.


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! Meet with a local real estate professional who can help you evaluate your ability to buy today.

Want to Advertise on this Site?

Latest Blog Posts

Interest Rates Are Rising Why Are You Waiting To Buy

The Cost Of Waiting: Interest Rates Edition [INFOGRAPHIC] 3.5KSHARES 3.3K 147 0 41 0 Some Highlights: Interest rates are projected to increase steadily heading

Read More

Pre Approval For Home Loan

Getting Pre-Approved Should Always Be Your First Step 4.3KSHARES 4.1K 139 0 36 0 In many markets across the country, the number of buyers searching for their dream

Read More

Homeownership Is The American Dream

NOT Owning Your Home Can Cost You A Lot Of Money! 4.7KSHARES 4.5K 182 0 109 0 Owning a home has great financial benefits, yet many continue to rent! Today, let’s

Read More

Why Do Mortgage Rates Change

Mortgage rates fluctuate based on the market’s perception of the economy.Stocks are considered riskier investments, and therefore have an expected higher rate of return to compensate for that

Read More