Are you ready to buy your first home?

 

Saving for a down payment is often the biggest and scariest hurdle for a first time home buyer. Using data from HUD, Census and Apartment List, a study was done to determine how long it would take to save for a down payment in each state. The study used the "rule" that a home shouldn't cost more than 28% of total income. It was calculated by determining the percentage of income spent on rent and the amount needed for a 10% down payment. Below is a map with the data collected. 

 

But what if you only need a 3% down payment?? 

You may have been able to take advantage of the Freddie Mac or Fannie Mae's 3% down payment program. That means instead of 3 to 5 years, you have your down payment in less than a year in most states. 

 

 

Saving for your down payment may take less time then you think! 

What would YOU sacrifice for a new home? 

Here's some fun facts, from a report conducted by Nerd Wallet.

The report uses the differences between Millennial and Gen X'ers, (I linked it above if you want to give it a read) but I'll just list the things they're willing to sacrifice in general. Which ones would YOU give up for your first home? Leave me a comment!!! 

 

  • Forgo a vacation
  • Make coffee at home
  • Delay having children
  • Delay marriage
  • Delay having a honeymoon
  • Get a part-time job

 

 

No matter how you go about it, it really won't take as long as you might think to save that money! 

 

Stop by next week when we talk about closing costs!