Saving for a down payment is often the biggest hurdle for a first-time home-buyer 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? | Keeping Current Matters
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? | Keeping Current Matters
Bottom LineWhether 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.
If you are in the market for buying or selling a home, Ken Couture is the best realtor in Las Vegas to help you. Call us at (702) 476-0060 or fill out the form below.
