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

By
Real Estate Agent with Donahue Real Estate Co.

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

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

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? | MyKCM

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? | MyKCM

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.

Posted by

Joseph D.  Federico, Donahue Real Estate Co. Dedham, MA - Serving my clients in Dedham, Westwood, Norwood, Canton, Milton, Sharon, Walpole, Jamaica Plain, Roslindale, West Roxbury, and West Bridgewater.

Joseph D. Federico

Donahue Real Estate Co. 

15 Bryant St., Dedham MA

"Neighbors Helping Neighbors"

www.Joefed.com

joe@donahuere.com

 

 

 

 

 

Comments (4)

Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

Great information, thanks for sharing Joseph!

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). 

Apr 19, 2021 04:08 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Joseph. Interesting numbers for sure. Thanks for sharing. Enjoy your day.

Apr 19, 2021 04:19 AM
Bill Salvatore - YVP Blog
Arizona Elite Properties - Chandler, AZ
Realtor - Valley of the Sun / golfArizona@cox.net

Joseph,

Great information.  What a vast diff with Ca. 18+ years vs texas 2+.  Make it a great Monday and start of the week.  Thanks for the post.  Bill Salvatore 

Apr 19, 2021 05:19 AM
Norma J. Elkins
Elite Realty Group - Morristown, TN
Realtor - Elkins Home Selling Team

Great information for new buyer's for sure.  Thanks for sharing and have a wonderful day!

Apr 19, 2021 06:02 AM

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