You Can Save for a Down Payment Faster Than You Think
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
- home prices
With so much variability I is important 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, it was 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.
A diabolical trend in the rental business leads to increasing rent 3% every year. This rate exceeds the rate of rising wages and barely keep pace with anticipated inflation and when taxes and interest rates are factored in, saving for a down payment can be a challenge. (You do have options)
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.
The down-payment challenge is not new to aspiring home buyers. Solutions range from packing lunch to innovative lending plans. I have a list of over 25 ways to FIND down-payment money. Some of this 'found' money you must pay back and some are grants that need not be paid back while one does not require pay off until the house is sold. Contact me for this LIST of 25 Places to FIND Down-Payment Money.
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 me or your loan professional to help you evaluate your ability to buy your Florida dream home today.
Best of success,
Annette Lawrence, Broker Associate
Palm Harbor, FL
727. 420. 4041