One of the most challenging aspects of buying a home is saving for a down payment. As you’re working hard to budget and plan for your purchase, you may want to understand how much you’ll need to put down and more specifically, how long it will take you to get there. The process may actually move faster than you think.
We are able to estimate how long it might take someone earning the median income and paying the median rent to save up for a down payment on a median-priced home.
Since saving for a down payment can be a great opportunity to practice budgeting for housing expenses, this estimate also uses the concept that a household should not pay more than 28% of their total income on monthly housing expenses. According to the data, the national average for the time it would take to save for a 10% down payment is right around two and a half years.
What if I take advantage of a 3% down payment program?
It’s a common misconception that you need a 20% down payment to buy a home. You may be surprised to learn that there are actually more affordable options and down payment assistance programs available, especially for first-time buyers.
In reality, saving for a 3% down payment may not take several years. In fact, it could take less than a year in most states.
No matter where you are in the process of saving for a down payment, you could be closer to your dream home than you think!
Let’s connect to explore the down payment options available in your area!