Down Payment – How Long Does It Take to Save?

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:

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.

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.