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

[Nikki_04]

I have come to terms with the fact that I won't be able to buy a home any time soon. I was planning to buy a home way out where it is cheaper, but even those areas are getting pricey. I hope in a few years to have over 100k saved and then MAYBE I will consider buying a house.

All the houses around me are 600k+ and new homes start at 1mil

The only reason I stay is for my family. My grandmother owns her house and its paid off(its in my parent's name now), but my parent's never owned a home of their own.

 

[Contrefaire]

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.

The people still able to put 20%+ down (outside of the wealthy/high income) are the ones whose parents have "gifted" them cash out of the equity of their own homes or had relatives die and leave them property/assets/insurance.

That being said, 3.5% isn't really that impossible to save, especially as a DINK couple with minimal expenses. And honestly 3.5% on 250k is nothing for two people to save up. That can be done within a few years of diligent saving (depending on how aggressively they're trying to pay off any student loans/debt of course). Even in my city (where a DP is easily double or even triple that) it can be done on a single income and much more easily with two incomes.

Then, there are also many, many programs available to first time home buyers with moderate incomes. They have ones that offer down payment assistance or ones that pay closing costs and there are even lenders that waive things like PMI (which lowers your mortgage), closing and other related fees. It's little things like that, that for some reason aren't really widely known to most, that are allowing a lot of average people to purchase homes, even in this climate.

 

[Elfuego]

Owning houses ain't for everyone.

 

[mag357]

Owning houses ain't for everyone.

Yea... but it should be possible for everybody

 

[Solomon Caine]

These guys complaining about house prices in the US, you should see Australia man, there is a whole generation that can’t afford homes. All because rich mfers from Asia are buyin up all the property and not even living in em or rentin em out.. just driving up the prices and sitting on em... they had an initiative that allowed people that buy a home here to be made citizens and let’s say that opened the flood gates..

 

[WaveCapsByOscorp™]

You actually have to create a viable long term plan if you want to get a house. It’s not like saving for a vacation. A house is a major life purchase (or is suppose to be).

It’s definitely not something you’re suppose to take lightly.

 

[ImGucci]

For my friends, most of them borrowed money or were given money by family and there is nothing wrong with that. For me I don't have enough down payment to buy a house in Brooklyn or Queens unless I buy in the hood. I could buy a house in Long island but I don't want to live there. Realistically i could afford a million dollar mortgage over 30 years at the best rate but it's the goddamn down payment.

Preach nyc breh, I’m in the same boat.
The mortgages don’t even be a lot, it’s the down payment that most people can’t get.

And I would never buy a house with 0 down, the interest rates would horrible. You be a slave to that house forever.

 

[Standing on business]

These guys complaining about house prices in the US, you should see Australia man, there is a whole generation that can’t afford homes. All because rich mfers from Asia are buyin up all the property and not even living in em or rentin em out.. just driving up the prices and sitting on em... they had an initiative that allowed people that buy a home here to be made citizens and let’s say that opened the flood gates..

So they doing Australia the same way they did San Francisco

 

[chineebai]

Preach nyc breh, I’m in the same boat.
The mortgages don’t even be a lot, it’s the down payment that most people can’t get.

And I would never buy a house with 0 down, the interest rates would horrible. You be a slave to that house forever.

Realistically I think the only way is to live in your parents house for like 5 years rent free and stack

 

[PeterLegend]

In Southern California the average is like 450K....I saved up 20% at the moment.

I'm 29 years old for reference, my parents don't own a house so I've been supporting them after I graduated college too.

 

[Solomon Caine]

So they doing Australia the same way they did San Francisco

Also there is an older generation that had it much easier in their day buying multiple properties.. ur looking atleast a mil if you wanna be anywhere near the center of cities.

 

[xoxodede]

Move back home with your parents for about 6-8 months - if you can. That's how I did it.

 

[Benefited]

If you save for like 10/15 years, you can accumulate some decent bread.

take a 400 dollar care note and save that money for 10 years and you got 48k.

That's a 240k crib.

So you gotta ask yourself what is more important? Stuntin in a new care that loses its value as soon as you leave the lot. Or paying off a solid whip and saving that new car bread until you get enough for the downpayment on a decent spot?

Mufukkaz don't think long term and complain. Instant gratification mindsets don't get you long term assets like homes.

Far as Im concerned buying a 250K house when you have to save 10 years just to put down 20% is the same,if not worst than stunting

Definitley more stupid at least.

 

[Rekkapryde]

Far as Im concerned buying a 250K house when you have to save 10 years just to put down 20% is the same,if not worst than stunting

Definitley more stupid at least.

Not even close. One is an asset that can earn you money when you sell, the other is a loss immediately after purchase.

 

[R.E.N. Spells Ren]

NACA


0% down. No closing cost. Amongst the best rates you'll find.

Pretty much the only requirements are that you demonstrate your ability to afford the mortgage payment (they check your credit, but there's no minimum credit score), that you buy a home worth less than the max price they set for the area you want to buy (250k for ATL, 450k for NYC single families....more for multifamily) and you must live in the home you're buying.

They're tedious to work with, but if you really want to get into homeownership, this is a viable route for just about anyone. And if you're going be in one city for a long time (5+ years), you really should be owning instead of renting.