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 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 you 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 a 2-bedroom apartment 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.
On the right is a map created using the data for each state.
According to the data, residents in Iowa can save for a down payment the quickest in just under 2 years (1.99). 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 attainable in a year or two in many states (as shown in the map to the right).
Tony Clark Realtors believes everyone should feel confident when buying and selling a home. We believe that everyone deserves exceptional service and honest guidance thru the changing real estate market. Since 1976, we are the Owensboro Kentucky market expert. The Tony Clark Team are available and ready to be your trusted real estate adviser.
Tony Clark Realtors | 2934 Frederica Street Owensboro, Kentucky | (270) 683-SOLD
Whether you have just started to save for a down payment, or have been saving for years, you may be closer to your dream home than you think! Let’s schedule a time to meet so we can help you evaluate your ability to buy today. (270) 926-0055