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. Here, Team Nest Builder shares how long it takes on average to save for a down payment in each state.
Using data from HUD, Census and Apartment List, KeepingCurrentMatters.com determined how long it would take, nationwide, for a first-time buyer to save enough money for a down payment on their dream home. 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, KeepingCurrentMatter.com established how long (in years) it would take for an average resident to save enough money to buy a home of their own. Below is a map that was created using the data for each state:
But what if you were able to take advantage of one of Freddie Mac’s or Fannie Mae’s 3%-down programs? Suddenly, saving for a down payment no longer takes 2 to 5 years, but becomes possible in less than a year in most states, including New Jersey, as shown on the map below.
Whether you have just begun to save for a down payment or have been saving for years, you may be closer to your dream home than you think! Call Team Nest Builder’s Lynn Garafola at 973-222-3777 to start buying a New Jersey home TODAY! Start searching for your New Jersey home now at TeamNestBuilder.com. Want more info? Click HERE to download a FREE 2019 Spring Home Buyer Guide!