Buyers are told that putting 20% down on a home mortgage is the norm. But a new report from U.S. Mortgage Insurers (USMI) shows that may not be feasible for many aspiring homeowners, says the Washington Post's Michele Lerner.
The report found that it would take an average of 36 years for someone earning the median income in the District to save for a 20 percent down payment on a median-priced house. Only California residents would face a longer period — 37 years — to save for a 20 percent down payment. In the state with the shortest time period to save 20 percent — Indiana — residents would need 12 years. The study found that it would take Maryland residents 18 years to save for a 20 percent down payment and Virginia residents 20 years.
The states with the largest number of buyers purchasing a home with PMI in 2017 were Texas, California, Florida, Illinois and Michigan.
The median down payment for buyers under age 37, a group that typically includes a majority of first-time buyers, was just 7 percent last year, according to the National Association of Realtors.
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