Saving for a down payment may seem very daunting when you are first attempting the process of buying a home. One of the biggest challenges future homeowners struggle with is saving for a down payment. Once you start budgeting and planning your finances for purchasing a home, you will need to determine the amount necessary to put down and the length of time that you will need. After this process begins, it moves much more quickly than you might anticipate. Let Seven Gables Real Estate help guide you through the process of buying a home!
Utilizing data from the U.S. Department of Housing and Urban Development (HUD) and Apartment List, you 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. Budgeting for housing costs, it is estimated that a household should not pay more than 28% of their total monthly income on housing expenses. Based on the national average, the data shows that it would take 2.53 years to save for a 10% down payment.
A common misconception about home buying is that you will need a 20% down payment, but there are actually more affordable alternatives and down payment assistance programs available. If you are a first time home buyer, these programs could prove to be especially beneficial as you enter the process. Typically, saving for a 3% down payment may not take several years, it could just take less than a year, depending on what state you are purchasing in.
You should not let saving for a down payment on a home be a challenging, you will overcome this hurdle! You are probably much closer than you think. Connect with a Seven Gables Advisor today to explore your options!