Down Payment – How Long Does It Take to Save?

down payment saving

Down Payment Time Frame to Save

In a recent study, researchers concluded it would take “nearly eight years” for a first-time home buyer to save enough for a down payment on their dream home.

According to the study, residents in South Dakota are able to save for a down payment in the shortest amount of time – just under 3.5 years. The Colorado average is 7.88 years. Below is a map created using each state’s median income and housing prices:

10%-down-payment

What if you only needed to save 3% or 3.5%?

What if you were able to take advantage of one of the Freddie Mac or Fannie Mae 3% down programs? Or you used a FHA loan with a 3.5% down payment? Suddenly saving for a down payment no longer seems so formidable.  Its possible to save for a down payment in under two years in many states as shown in the map below.

3%-down-payment

What if you could qualify for down payment assistance?

What if you didn’t have to have any money for a down payment?  For qualified buyers, there are several down payment assistance programs that require little or no down payment.

Bottom Line

Don’t let the thought of saving for a down payment quash your hopes of buying a home.  You may be closer to your dream home than you think! Let’s talk and evaluate your ability to buy a home.

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