You Can Save for a Down Payment Faster Than You Think!

Saving for a down payment is always the most challenging part of buying a new home.  When you look at the first map below to save a downpayment in Florida would take over 8 years!  But, what if you could put 3.5% down or maybe no downpayment at all?  That would definitely shorten the time to save and allow you to be paying a mortgage for your own home which would probably be lower than you are paying in rent!  In Collier County east of Collier Boulevard (951) you can qualify for USDA financing which allows you to purchase a home with no downpayment.  Or you can qualify anywhere in Collier County for a mortgage with only 3.5% down.  Have you checked with a mortgage broker recently about your ability to qualify for a mortgage?  Give me a call and I will put you in touch with someone on my team who will work very hard to make sure you qualify for a mortgage.  We can get you that perfect home sooner than you think!

Courtesy of Keeping Current Matters 2018

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 the United States Census Bureau and Zillow, 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 Ohio can save for a down payment the quickest in just under 3 years (2.44). Below is a map that was created using the data for each state:

You Can Save for a Down Payment Faster Than You Think! | 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 5 or 10 years, but becomes possible in a year or two in many states as shown on the map below.

You Can Save for a Down Payment Faster Than You Think! | MyKCM

Bottom Line

Whether you have just started 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 meet up so I can help you evaluate your ability to buy today.

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