How Much Time Do You Need To Save for a Down Payment?

-

 One of the biggest hurdles homebuyers face is saving for a down payment states Mike Eastwood Author & Chief Executive Officer of West USA Realty of Prescott. As you’re budgeting and planning for your home purchase, you’ll want to understand how much you’ll need to put down and how long it will take you to get there. The process may actually move faster than you think.

Using data from the U.S. Department of Housing and Urban Development (HUD) and Apartment List, we can estimate how long it might take someone earning the median income and paying the median rent to save up for a down payment on a median-priced home. Since saving for a down payment can be a great time to practice budgeting for housing costs, this estimate also uses the concept that a household should not pay more than 28% of their total income on monthly housing expenses.

According to the data, the national average for the time it would take to save for a 10% down payment is right around two and a half years (2.53). Residents in Iowa can save for a down payment the fastest, doing so in just over one year (1.31). The map below illustrates this time (in years) for each state:How Much Time Do You Need To Save for a Down Payment? | Keeping Current Matters

What if you only need to save 3%?

What if you’re able to take advantage of one of the 3% down payment programs available? It’s a common misconception that you need a 20% down payment to buy a home, but there are actually more affordable options and down payment assistance programs available, especially for first-time buyers. The reality is, saving for a 3% down payment may not take several years. In fact, it could take less than a year in most states, as shown in the map below:How Much Time Do You Need To Save for a Down Payment? | Keeping Current Matters

Bottom Line

Wherever you are in the process of saving for a down payment, you may be closer to your dream home than you think. Talk to your local real estate professional to learn more about the down payment options available in your area and how they support your plans.

To learn more about the Prescott, Arizona real estate market contact Mike Eastwood CEO of West USA Realty of Prescott at 928-636-1500 or visit us at www.westusaofprescott.com and Mike will introduce you to one of his professional real estate agents. If you like to search on your own, download the FREE home search app http://app.westusa.com/WUSAT1M   or stop by and visit us at https://goo.gl/maps/4y1zgMPaUTbgwcRL6 #Prescottrealestate #Prescotthomes #Prescottland #Prescottvalleyrealestate #Prescottvalleyhomes #Prescottvalleyland #Chinovalleyrealestate #Chinovalleyhomes #Chinovlaaelland #Arizonarealestate #Arizonahomes  


Comments

Post a Comment

Popular posts from this blog

West USA Realty of Prescott: Strengthening Community Bonds Through Real Estate and Charitable Engagement

-
  Cultivating Community Well-being with West USA Realty of Prescott At West USA Realty of Prescott , we do more than just facilitate real estate transactions. We are committed to enriching the lives of Prescott residents by actively engaging with Pony 4 Precious , a Prescott, Arizona non-profit organization dedicated to children's education and animal welfare, epitomizes our approach to corporate social responsibility. This partnership not only enriches our community but also underscores the role real estate can play in broader societal contexts. The Vision and Impact of West USA Realty of Prescott West USA Realty of Prescott has a storied history of integrity and community involvement. As one of the premier real estate firms in Prescott, Arizona, we are known not just for our professional excellence but also for our deep commitment to giving back to the community. We participate actively in local charities, attend events, and support various initiatives that benefit both people a...
Read more

Diving Deep into Today’s Biggest Buyer Concerns

-
Image
 Mike Eastwood Author-Chief Executive Officer of Bello Sol Inc/West USA Realty of Prescott states.  Last week,   Fannie Mae   released their   Home Purchase Sentiment Index   (HPSI). Though the survey showed 77% of respondents believe it’s a “good time to sell,” it also confirms what many are sensing: an increasing number of Americans believe it’s a “bad time to buy” a home. The percentage of those surveyed saying it’s a “bad time to buy” hit 64%, up from 56% last month and 38% last July. The latest HPSI explains: “Consumers also continued to cite high home prices as the predominant reason for their ongoing and significant divergence in sentiment toward homebuying and home-selling conditions.   While all surveyed segments have expressed greater negativity toward homebuying over the last few months, renters who say they are planning to buy a home in the next few years have demonstrated an even steeper decline in homebuying sentiment than homeowners. It’...
Read more

Unlocking Attainable Homeownership Strategies for Generation Z

-
  In the contemporary, fast-paced world, the aspiration of possessing a domicile stands as a fundamental element of the American Dream. It embodies constancy, self-sufficiency, and a sanctuary to call one's personal sanctuary. However, for Generation Z, affectionately known as "Zoomers," born between 1997 and 2012, the realization of this vision may seem increasingly formidable. In the face of surging mortgage interest rates and soaring residential property values, the voyage toward property ownership can resemble a steep ascent. Nevertheless, the accomplishment of procuring one's inaugural home remains entirely feasible, even within the current real estate milieu. This composition will delve into a spectrum of meticulously tailored approaches intended expressly for Generation Z to transmute the dream of homeownership into a tangible reality. Exploring Avenues of Down Payment Support Given the perpetual escalation in residential property prices, accumulating funds for...
Read more