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The real estate landscape can be tough for first-time homeowners with no equity. Many people struggle to meet the demands of everyday bills and still find space in the budget to put something away for a family home. Let's take a look at how long you could spend saving for a down home. Then, we'll look at an alternative loan program that can help you get into your dream home faster.
To get a competitive rate on your home, it's important to put down as high a down payment as you can, with 20% often considered ideal. However, the nationwide average to save 20% to put down on a median-priced home is now 14 years on a median income, according to Unison’s Home Affordability Report. Floridians could wait up to 36 years to save 20% down, meaning the average-earning Millennial would be in their 40s before realizing their dream of homeownership. Let's see how those numbers shakedown using another source and dropping the down payment goal to 10%.
According to a recent study by Builder.com, Florida comes in second in a list of states where consumers spend a decade or more saving for a 10% down payment. Meanwhile, the average home cost in the state is $283,800, with a median income of just $47,463. That's compared to an average of 8 years nationwide.
The good news is that there are alternatives to waiting half a lifetime to buy your first home.
100% financing refers to mortgages that include 100% of the sales price. It allows you to finance the entire purchase price, so you don't need a down payment. New and repeat home buyers may be eligible for these mortgages.
At We Florida Financial, our members choose a hybrid adjustable rate mortgage (10/1 or 5/5) to finance a home purchase. You don't need a down payment, which lets you save for the closing costs and leaves more money in your pocket.
A Mortgage Loan Officer from We Florida Financial can help you apply today. Contact an MLO online or visit your local branch. Learn more about our program here.