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How Fast Can You Save for a Down Payment?

Tuesday, April 25, 2017   /   by Lynn Goodale

How Fast Can You Save for a Down Payment?

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 would it take you 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 a 2-bedroom apartment 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 Iowa can save for a down payment the quickest in just under 2 years (1.99). Below is a map created using the data for each state:

YRS needed to 10 percent down.jpg



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 attainable in a year or two in many states as shown in the map below.

YRS needed to 3 percent down.jpg

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 we can help you evaluate your ability to buy today. Call Austin and Lynn at 602.799.7099 and start packing! 

Click here to start searching for homes immediately in Arizona!


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Goodale Realty Team at JK Realty
Austin & Lynn Goodale
1760 E. Pecos Rd #501
Gilbert, AZ 85295
602-799-7099
480-734-8781
Steven Cooper & Mike Barnhart
Mike: 480.551.7646 | Steven: 480.720.4857
1528 E. Williams Field Rd.
Bldg. C #201
Gilbert, AZ 85295

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