Saving for a Down Payment
In a study conducted by Builder.com, researchers determined it would take almost 8 years for a first-time home buyer to save for a down payment for their dream home.
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 many years it would take for an average renter to save for a down payment.
According to the study, South Dakota people are able to save for a down payment the quickest – in just under 3.5 years.
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 doable in under 2 years!
Real Estate Bottom Line
Whether you’ve just started to save for a down payment, or have been saving for years, you may be closer to buying your dream home than you think! I am happy to help you evaluate your ability to buy today.