Skip To Content

How Much Time Do You Need To Save for a Down Payment?

How Much Time Do You Need To Save for a Down Payment? | Simplifying The Market One of the biggest hurdles homebuyers face is saving for a down payment. As you’re budgeting and planning for your home purchase, you’ll want to understand how much you’ll need to put down and how long it will take you to get there. The process may actually move faster than you think. Using data from the U.S. Department of Housing and Urban Development (HUD) and Apartment List, we can estimate how long it might take someone earning the median income and paying the median rent to save up for a down payment on a median-priced home. Since saving for a down payment can be a great time to practice budgeting for housing costs, this estimate also uses the concept that a household should not pay more than 28% of their total income on monthly housing expenses. According to the data, the national average for the time it would take to save for a 10% down payment is right around two and a half years (2.53). Residents in Iowa can save for a down payment the fastest, doing so in just over one year (1.31). The map below illustrates this time (in years) for each state:How Much Time Do You Need To Save for a Down Payment? | Simplifying The Market

What if you only need to save 3%?

What if you’re able to take advantage of one of the 3% down payment programs available? It’s a common misconception that you need a 20% down payment to buy a home, but there are actually more affordable options and down payment assistance programs available, especially for first-time buyers. The reality is, saving for a 3% down payment may not take several years. In fact, it could take less than a year in most states, as shown in the map below:How Much Time Do You Need To Save for a Down Payment? | Simplifying The Market

Bottom Line

Wherever you are in the process of saving for a down payment, you may be closer to your dream home than you think. Let’s connect to explore the down payment options available in our area and how they support your plans.

If you have any questions about the buying or selling process, OUR TEAM CAN HELP! Call or text me today!!!!

Read Our Client Reviews: CLICK HERE

ADDITIONAL RESOURCES

  • Buyer Resources
    • Search For Homes: CLICK HERE
    • Virtual Home Buying Program: CLICK HERE
    • FREE Home Buyer Webinar: CLICK HERE (Mistakes to Avoid When Buying a Home!)
    • Download our FREE Home Search Mobile App: CLICK HERE
    • Ask about our credit repair program!
  • Seller Resources
  • FREE Instant Access To Your Home Value: CLICK HERE
  • FREE E-Book “Protecting Your Equity”: CLICK HERE (Learn the secrets to selling your home for MORE MONEY in LESS Time)
  • Home Sale Concierge Program: CLICK HERE
This image has an empty alt attribute; its file name is o-01.png
Comments are closed.