April 11, 2016 by Jeff Lowen
In a study conducted by Builder.com, researchers determined that nationwide, it would take “nearly eight years” for a first-time buyer to save enough for a down payment on their dream home. 8 years??
Depending on where you live, median rents, incomes and home prices all vary. By determining the percentage of income a renter spends on housing in each state, and the amount needed for a 10% down payment, they were able to establish how long (in years) it would take for an average resident to save.
According to the study, residents in South Dakota are able to save for a down payment the quickest in just under 3.5 years. Below is a map created using the data for each state:
But Wait!! What if you only needed to save 3%?
What if you were able to take advantage of one of the Freddie Mac or Fannie Mae 3% down programs? Suddenly saving for a down payment no longer takes 5 or 10 years, but becomes attainable in under two years in many states as shown in the map below.
The moral of the story…
Whether you have just started to save for a down payment, or have been for years, you may be closer to your dream home than you think! Keep in mind that in some areas, FHA loans make up nearly half of all loans at 3.5% down. Many conventional loans only require 5% down, as well!
And, to make it even easier, there are down payment assistance programs that can help you. Reach out if you’d like more info…
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