In a study conducted by Builder.com, researchers determined that it would only take 2-1/2 years for a first-time buyer to save enough for a down payment on their Virginia 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 3% & 10% down payment, they were able to establish how long (in years) it would take for an average resident to save.
What if you only needed to a save 3% down payment?
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 attainable in under two years in many states as shown in the map below.
According to the study, residents in South Dakota are able to save for a 10% down payment the quickest in just under 3.5 years. Below is a map created using the data for each state:
Whether you have just started to save for a down payment, or have been for years, you may be closer to your dream home than you think! Thinking about buying a home, contact The Mayer Team, were here to provide you with the knowledge you need to make educated decisions. We’ll guide you through this emotional process which will be one of the biggest financial decisions of your lifetime. We can help you evaluate your ability to buy and connect you with trusted lending professionals who will help in forming a plan to put you into you new home. So whether your thinking about buying today or sometime in the future, we would love to talk to you.