Saving for Your Down Payment

Dated: 05/05/2019

Views: 160

How Quickly Can You Save Your Down Payment?

How Quickly Can You Save Your Down Payment? | MyKCM

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 to save for a down payment in each state.

Using data from HUDCensus and Apartment List, 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 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.

According to the data, residents in Kansas can save for a down payment the quickest, doing so in just over 1 year (1.12). Below is a map that was created using the data for each state:

How Quickly Can You Save Your Down Payment? | MyKCM

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 2 to 5 years, but becomes possible in less than a year in most states, as shown on the map below.

How Quickly Can You Save Your Down Payment? | MyKCM

Bottom Line

Whether you have just begun 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 get together to help you evaluate your ability to buy today.

Latest Blog Posts

Forbearance Numbers Are Lower than Expected

Forbearance Numbers Are Lower than ExpectedOriginally, some housing industry analysts were concerned that the mortgage forbearance program (which allows families to delay payments to a later date)

Read More

A Real Estate Pro Is More Helpful Now than Ever [INFOGRAPHIC]

A Real Estate Pro Is More Helpful Now than Ever [INFOGRAPHIC]Some HighlightsA recent study shared by NAR notes that both buyers and sellers think an agent is more helpful than ever during

Read More

Thinking of Selling Your House? Now May be the Right Time

Thinking of Selling Your House? Now May be the Right TimeInventory is arguably the biggest challenge for buyers in today’s housing market. There are simply more buyers actively looking for

Read More

Does Your Home Have What Buyers Are Looking For?

Does Your Home Have What Buyers Are Looking For?There’s great opportunity for today’s homeowners to sell their houses and make a move, yet due to the impact of the ongoing health crisis,

Read More