Let’s talk trends & timing for down payments.
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.
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:
What if you only needed to save 3%?
What if you were able to take advantage of one of Freddie Macs or Fannie Maes 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.
One other post you may enjoy, Using Your Tax Refund to Jump Start Your Down Payment Savings.
Whether you have just started to save for a down payment, or have been saving for years, you maybe closer to your dream home than you think.
What about Seattle?
Your best bet is to get pre-qualified if real estate is a goal during the next year. Get the numbers and see what needs to happen, as well as what can happen.
And talk with your trusted Metropolist broker about the specifics in navigating our competitive market as well as sharing about your real estate goals.