How Long Does It Take to Save for a House?
Do you know how long it will take to save for a home? What about how much money will you need to buy a house? As you can imagine, these questions are surrounded by both myth and fact.
If you are trying to save for a down payment on a house right now, and you live in Florida, Texas, Tennessee, Alabama, today’s topic will help explain and compare current available USDA home loan programs.
Over a decade to save for a down payment?
A recent article by Marketwatch.com indicates that it would take on average 12.5 years in order to save up for a 20% down payment. Yes, that is over a decade!
Thankfully, affordable mortgage programs do exist, but as I talk to more and more potential homebuyers, many are just not aware of the available options.
Affordable Mortgage Program Comparison
If you are buying a primary residence, the following programs are available:
- USDA Rural Housing Loans:
USDA Loans offer 100% financing (No Down Payment) and the ability to finance closing costs into the loan when the appraised value is higher than the sales price. This is only eligible for designated rural areas and household income limits will apply.
- VA Loans:
VA Loans allow for 100% financing (No Down Payment) and are restricted to eligible service members. VA Loans can provide for qualifying flexibility with previous short sales, foreclosure, and/or bankruptcy.
- FHA Loans:
FHA Loans have a minimum down payment requirement of only 3.5% and allow for credit qualifying flexibility.
Common traits for all of these programs are:
- Full Income and Asset verification
- Sufficient equity and minimum credit qualifying conditions are required
- Primary residences only
- Credit qualifying flexibility
- Gift Funds are allowed
So while it could take over a decade to save for a house, thankfully there are some great flexible loans that could mean that you, or your client’s, dream of owning your own home is closer than you think!
It doesn’t have to take over 12 years to save for a home. The Metroplex Mortgage team are experts in the USDA, VA and FHA programs. Call or email us to discuss your situation today, or take advantage of our free second opinion service!