In a recent study conducted by Builder.com, researchers determined that nationwide it would take “nearly eight years” for a first-time buyer to save enough for a down payment on their dream home.
Depending on where you live, median rents, incomes and home prices all vary. By determining the percentage a renter spends on housing in each state and the amount needed for a 10% down payment, they were able to establish how long (in years) it would take for an average resident to save.
According to the study, residents in South Dakota are able to save for a down payment the quickest in just under 3.5 years. Here in Tennessee the number came in at a bit over 8.5 years. Below is a map 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 the Freddie Mac or Fannie Mae 3% down programs, or even a low down payment conventional loan? There are even some loans available in certain areas around the Knoxville area that require $0 down payment! Suddenly saving for a down payment no longer takes 5 or 10 years, but becomes attainable in under two years or less in many states as shown in the map below.
Bottom Line
Whether you have just started to save for a down payment, or have been for years, you may be closer to your dream home than you think! Call me, Troy Stavros with Gables & Gates, REALTORS, and I can help you evaluate your ability to buy today.