How Quickly Can You Save Your Down Payment

Dated: April 29 2019

Views: 99

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 HUD, Census 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.


#relocation #boise #boiseidaho #boisehomes #firsttimehomebuyers #homeownership #buildingwealth #blakeonboise #alisonblakegroup

Latest Blog Posts

What You Should Do Before Interest Rates Rise

What You Should Do Before Interest Rates RiseIn today’s real estate market, mortgage interest rates are near record lows. If you’ve been in your current home for several years and haven’t

Read More

Remote Work Has Changed Our Home Needs Is It Time For Your Home To Change Too

Remote Work Has Changed Our Home Needs. Is It Time for Your Home To Change, Too?Over the past year, many homeowners realized what they need in a home is changing, especially with the rise in remote

Read More

Todays Real Estate Market Explained Through 4 Key Trends

Today’s Real Estate Market Explained Through 4 Key TrendsAs we move into the second half of the year, one thing is clear: the current real estate market is one for the record books. The exact mix

Read More

Pop Quiz Can You Define These Key Terms In Todays Housing Market INFOGRAPHIC

Pop Quiz: Can You Define These Key Terms in Today’s Housing Market? [INFOGRAPHIC]Some Highlights The language of buying and selling a home may sound scary at first, but knowing how key terms

Read More