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. 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? | Simplifying The Market

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? | Simplifying The Market

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. Let’s connect to explore the down payment options available in our area and how they support your plans.

Share:

Facebook
Pinterest
Email
Print
Mark Hughes

Mark Hughes

Mark Hughes is the President and curator of Bungalows and Cottages LLC, Blog, and Networks. Mark's mission is to bring the design, history, and lifestyle of smaller comfortable iconic American bungalows and cottages to everyone. Mark is a real estate broker and former industry executive who once ranked in the top 1% of agents worldwide for sales and went on to lead two of the largest real estate companies in the Western US. Small house. Big Life.

Leave a Comment

Your email address will not be published.

Scroll to Top

Get The Newsletter

By subscribing you are agreeing to our Terms and Conditions & Privacy Policy

Anne Jensen

Anne covers the Los Angeles Market for Bungalows and Cottages along the south city side and LA’s southern coastal areas.

Contact Anne:
Call Center 941-275-2630
or Send A Note...

By sending you are agreeing to our Terms and Conditions & Privacy Policy

Jen Berbas

Jen covers the Austin Texas Market for Bungalows and Cottages from Downtown, to Old West Austin, Chestnut, Travis Heights, Rosedale, and all around town.

Contact Jen:
Call Center 941-275-2630
or Send A Note...

By sending you are agreeing to our Terms and Conditions & Privacy Policy

Expert Agent Connect

Connect with your local B&C expert to find, understand, and secure your next dream home. We’re here!

Or Call our Call Center at 941-275-2630

*By proceeding, you consent to receive communication at the
number you provided, and email, from bungalowsandcottages.com and
real estate professionals and their network of service providers about
your inquiry and other home-related matters. Msg/data rates may
apply. This consent applies even if you are on a do not call list and is not
a condition of any purchase.

Dakota Feroleto

Dakota covers the Southern California Desert Region for Bungalows and Cottages which includes Palm Springs, Rancho Mirage, Palm Desert, Indian Wells, and La Quinta.

Contact Dakota:
Call Center 941-275-2630
or Send A Note...

By sending you are agreeing to our Terms and Conditions & Privacy Policy

Ken Riel

Ken covers the Charlotte North Carolina Market for Bungalows and Cottages which includes Plaza Midwood, Elizabeth, Chantilly, Wesley Heights, Dilworth, NoDa, and Wilmore.

Contact Ken:
Call Center 941-275-2630
or Send A Note:

By sending you are agreeing to our Terms and Conditions & Privacy Policy

Karen Barks

Karen covers the Portland Oregon Market for Bungalows and Cottages from Beaverton and West Portland to the North and Northeast neighborhoods.

Contact Karen:
Call Center 941-275-2630
or Send A Note...

By sending you are agreeing to our Terms and Conditions & Privacy Policy

Chris Zoller

Chris covers the Tamp Florida Market for Bungalows and Cottages from Hyde Park, to Ybor, Seminole Heights, Historic Kenwood, and all around town.

Contact Chris:
Call Center 941-275-2630
or Send A Note:

By sending you are agreeing to our Terms and Conditions & Privacy Policy

Mark Hughes Bungalows and Cottages

Mark Hughes

Mark covers the Los Angeles Market for Bungalows Cottages. Mark also serves as the liaison to the B&C Expert Partner Agent Network.  He loves Bungalows and Cottages!

Contact Mark: Call Center
941-275-2630
or Send A Note...

By sending you are agreeing to our Terms and Conditions & Privacy Policy

Shannon Praetorius

Shannon covers the Seattle Market for Bungalows Cottages. Connect with Shannon here to find your best B&C Market guidance.

Contact Shannon: Call Center
941-275-2630
or Send A Note...

By sending you are agreeing to our Terms and Conditions & Privacy Policy

Peggy Graef

Peggy covers the Orlando Florida Market for Bungalows and Cottages from Colonialtown, and College Park to Winterpark, and Thornton, and all around town.

Contact Peggy:
Call Center 941-275-2630
or Send A Note...

By sending you are agreeing to our Terms and Conditions & Privacy Policy

Will Flannigan

Will covers the East Los Angeles Market for Bungalows Cottages. 

Contact Will:
941-275-2630
or Send A Note...

By sending you are agreeing to our Terms and Conditions & Privacy Policy

Mike Dobbs

Mike covers the West Side Los Angeles Market for Bungalows and Cottages.

Contact Mike: Call Center
941-275-2630
or Send A Note...

By sending you are agreeing to our Terms and Conditions & Privacy Policy

Amanda Rose

GA Lic#243859

Amanda covers the Atlanta Market for Bungalows & Cottages. 

Contact Amanda: Call Center
941-275-2630
or Send A Note...

By sending you are agreeing to our Terms and Conditions & Privacy Policy

Thomson Meeks

Lic#321092

Thomson covers the Asheville Market for Bungalows Cottages.

Contact Thomson: Call Center
941-275-2630
or Send A Note...

By sending you are agreeing to our Terms and Conditions & Privacy Policy

Submit Your BnB

Fill in your BnB details and we’ll review it for addition to our growing map of Bungalow and Cottages BnB’s.

*By sending you are agreeing to our Terms and Conditions & Privacy Policy.

Agent Lead and Referral Network

Realtors® Fill in your details to join our growing exclusive B&C Lead and Referral Network and we’ll get back to right away.

*By sending you are agreeing to our Terms and Conditions & Privacy Policy.