How can the average American afford a down payment on house?

[Standing on business]

Just judging by the median income vs home prices by each state, I don't see how someone with normal income can save up for a down payment while struggling to pay their normal expenses and overpriced rent.

20% is impossible for most, but even 3.5% of let's say $250k is still more than the average person is able to save.

 

[Dushane Hill]

Get your cake up

 

[50CentStan]

3.5% is doable if u save money breh. Now what is the average person job is another question. If average is McDonald's clerk then it's difficult . If average is a school teacher....then 2 school teachers should be able to save on their salary

 

[Tiffrock]

It depends on that market - also owner financing options or first time home owner programs

 

[goatmane]

Two couple income. Save your money for 2 years. FHA.... Don't live in New York or LA. It's not as hard as it looks

 

[Wild self]

It was designed not to, cause the cost of living is going up because people are living in overcrowded places like NY, DC, LA and land is scarce. It was all created for people to be permanent slaves to greedy landlords who doubled the rent prices since 2008.

 

[BaldingSoHard]

Budget.
Don't eat out 5x a week.
Don't buy new clothes if you dont need them.
Don't lease expensive cars.
Live within your means.

 

[Mordith]

GI Bill....

 

[eastside313]

250k is not a average home price.

 

[calixprynce]

uhhh cop a condo

and stack that bread....how many people just got like 4K+ from income tax?

 

[Freedman]

Qualified borrowers can make down payments as low as 3 percent with private mortgage insurance,

Just have to be qualified

 

[Standing on business]

uhhh cop a condo

and stack that bread....how many people just got like 4K+ from income tax?

Condo prices aren't really favorable right now plus you're paying more for less room. The only people who got $4k+ back from income tax are low income people with kids.

 

[Heafcliffe]

-Discipline (delayed gratification as its finest)
-Plenty of programs for vets, teachers, first-time homebuyers, gov't (State & Federal) employees

 

[R.E.N. Spells Ren]

It was designed not to, cause the cost of living is going up because people are living in overcrowded places like NY, DC, LA and land is scarce. It was all created for people to be permanent slaves to greedy landlords who doubled the rent prices since 2008.

I don't think it was designed to...the prices of homes skyrocketed throwing things way out of whack. Ironically, home prices increased so much in large part because clever financing made more expensive homes affordable to more people.

 

[calixprynce]

Condo prices aren't really favorable right now plus you're paying more for less room. The only people who got $4k+ back from income tax are low income people with kids.

depends on the situation . Why would a single breh buy a 250K house when he can buy a 50-70k condo?

And yes, low income ppl with kids just got like 4-10 racks back on taxes...if they can do it , richer people should be able to do it. excuses