Published on 04/30/18 by Muriel Palmgren

The down payment for a home is a stumbling block for many people who want to buy a home.  Have you ever wondered how long it would take to save enough for a down payment? 

Here is an article that has calculated just that.  They are using the average home price in different cities and assuming you want to put down 20% of the purchase price as a down payment.  While 20% is the amount that you might want to put down, most borrowers can put down a little as 3% to 5%.  (Some loans, such as VA or Rural Development Loans, require no down payment.)  Thus, the number of years needed for a 5% down payment could be 1/4 of the time needed for 20% down.  That means that you would need to save for about a year and a half for a 3% down payment. 

New Orleans ranked number 14 out of 50 cities.  It takes twice as long to save a 20% down payment as the lowest ranked cities because our average home price is higher than many areas.

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