Brecht Properties Blog Saving for a Down Payment; Faster than You Think

Many people sideline themselves with real estate because they don't think they can come up with a down payment. The following article should, if you are one of these people, give you hope:You Can Save for a Down Payment Faster Than You Thinkby The KCM Crew on April 11, 2016 In a 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 of income 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. 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? Suddenly saving for a down payment no longer takes 5 or 10 years, but becomes attainable in under two years in many states as shown in the map below.Bottom LineWhether 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! Meet with a local real estate professional who can help you evaluate your ability to buy today.The above article is interesting, but in some states such as Idaho, there are programs that effectively are 0% down loans. Call us if you need the names of some good loan officers, who can tell you what you might qualify for in a loan. As always, call us if we can help you with your real estate needs. You can also help us if you can refer to us a friend or colleague who may be getting ready to sell or buy real estate. We need listings, because all of ours are selling.