If you’re saving for a home, you’ve probably wondered when you’ll finally have enough. For a typical two-income household, putting down 20% plus closing costs takes about 6.5 years, according to a Veterans United analysis of the 50 largest U.S. metro areas.
That’s a long time to stay on track, especially when housing costs, everyday bills and rising home prices keep getting in the way. The good news is that 20% isn’t your only option. A smaller down payment can shorten the wait, and some loans require little to nothing down.
Below, you’ll see how long saving takes in different cities, why the wait keeps growing and how to choose a down payment that fits your budget.
Down payment savings timelines by city
Veterans
United’s study of the 50 largest metro areas found that some cities take about six years to save for 20% down plus closing costs, while others take more than a decade. That’s because home prices and incomes vary so much. The study uses a typical two-income household, so saving on one income will likely take longer.
Here’s how the five easiest and five toughest metros stack up:
Most affordable
- Pittsburgh (about 5.6 years)
- Cleveland (5.9 years)
- St. Louis (6.5 years)
- Detroit (6.5 years)
- Oklahoma City (6.6 years)
Least affordable
- Miami (14.2 years)
- San Diego (16.5 years)
- San Francisco (17.4 years)
- Los Angeles (17.6 years)
- San Jose (about 21 years)
Take Pittsburgh and San Jose. The median household in San Jose earns about $165,000 a year, roughly twice Pittsburgh’s $77,000. But the median home there costs about $1.9 million, about eight times Pittsburgh’s $237,000.
“Saving for a down payment doesn’t typically happen in a vacuum,” says Chris Birk, the vice president of mortgage insights at Veterans United. That means the timelines above can stretch even longer if rent, bills or surprise expenses eat into your savings.
Veterans often have a shortcut. About three-quarters of VA buyers nationwide buy with no down payment, Birk points out. “When it can take six or seven years to save for a traditional 20% down payment, low- and no-down-payment loan options can make an enormous difference,” he explains.
Why saving takes longer than it used to
Paychecks haven’t kept pace with home prices. In a separate analysis of 229 U.S. metro areas, Veterans United found that the average home value rose about 80% between 2015 and 2025, from roughly $183,000 to $330,000. Typical household income grew only about 65% in that time, from roughly $55,800 to $91,900.
Here’s how that gap raised the savings goal for a typical two-income household:
- In 2015, saving for 20% down plus closing costs took about 3.5 years and about $44,800.
- In 2025, the same goal took about 6.5 years and about $80,900.
So what pushed prices up?
Supply is one answer. Builders haven’t built enough homes to meet demand. Freddie Mac estimates the country was about 3.7 million homes short in late 2024, though other estimates differ.
Mortgage rates are another. When they hit record lows in early 2021, buyers rushed in and bid prices higher. “The biggest change is the growing disconnect between home prices and what people can realistically save,” says Birk.
Do you really need 20% down?
Not necessarily, though 20% down does have perks. On a conventional loan, it usually lets you skip private mortgage insurance (PMI), a monthly fee that protects the lender if you can’t repay the loan. You also start with more equity (the part of your home’s value you own). Birk says a sizable down payment can unlock a better interest rate, lower your monthly payment and cut the interest you pay over time.
The trade-off is cash. “Money you put into a down payment is money you no longer have for emergencies, home repairs, moving costs or other financial opportunities,” he explains. Some VA buyers could put down 20% but invest that money elsewhere. Waiting years to save can also cost you, since home prices can keep rising.
If you’d rather put down less, you have options — here are the minimums for four common loans:
- Conventional loans: Some Fannie Mae and Freddie Mac programs let qualified buyers put down as little as 3% ($12,000 on a $400,000 home).
- FHA loans: Backed by the Federal Housing Administration, these let you put down 3.5% ($14,000) with a credit score of 580 or higher.
- VA loans: Eligible service members, veterans and surviving spouses can put down $0.
- USDA loans: Backed by the U.S. Department of Agriculture, these loans let eligible buyers in qualifying rural and suburban areas put down $0.
Birk adds that you don’t have to choose all or nothing. On a VA purchase loan, putting down 5% or 10% can lower the VA funding fee, a one-time fee most VA borrowers pay.
Closing costs and other upfront cash you’ll still need
Even with $0 down, you’ll still pay closing costs, the fees due when you finalize your loan and home purchase. A general rule of thumb is about 3% to 5% of the home’s purchase price, according to Birk. On a $400,000 home, that’s roughly $12,000 to $20,000.
Additional costs to buying a home usually include:
- Lender fees: These cover processing and loan approval and include an origination fee (what the lender charges to create your loan).
- Title costs: A title search and title insurance protect against ownership disputes.
- Prepaid items: Lenders often collect a year of homeowners insurance and some property taxes upfront.
- Other services: You also pay for an appraisal and a home inspection.
You may not have to cover all of these costs yourself.
Seller concessions (money the seller agrees to put toward your costs) can help. “With VA loans, sellers can pay all a buyer’s mortgage-related closing costs and up to 4% in concessions, which can cover things like prepaid taxes and insurance and even paying off debts,” Birk explains. “But home sellers aren’t obligated to pay a dime on a buyer’s behalf.” It’s a negotiation.
Lender credits are another way to lower the cash you bring to closing. The lender covers part of your closing costs, and you pay a higher interest rate in return. That trade-off can cost you more over time, so Birk suggests comparing rates, costs and terms from several lenders.
How to choose the right down payment for you
To choose the right down payment for your situation, evaluate these factors:
1. Eligibility
Start with the loans you qualify for, since each program sets its own minimum. A lower credit score can raise that minimum on some loans, so check yours before you set a savings target.
Down payment assistance (grants and loans from state and local programs) may also cover part of your upfront cash. Many of these programs, though, favor low- to moderate-income first-time buyers.
2. Location
Your ZIP code matters more than you might think. In most of the U.S., a loan above $832,750 counts as a jumbo loan, meaning it’s too big for standard limits. Lenders typically want 10% to 20% down on those. In high-cost areas, the limit runs higher.
3. Long-term plans
Think about where you’ll be in 11 years. If you expect to still own the home, putting at least 10% down on an FHA loan ends your mortgage insurance by then. If you put down less, it sticks around for the life of the loan. If you suspect you’ll move in a few years, keeping cash on hand may serve you better.
Whatever amount you pick, leave yourself a cushion after closing.
The bottom line
Before setting a savings goal, consult a trusted lender about which loan(s) fit you. Birk says many buyers assume they need 20% down, see an intimidating number and put homeownership on hold. Ask for a realistic estimate of your down payment, closing costs and monthly payment. Then build your savings plan around those numbers. “You might discover you’re closer to buying than you thought,” he adds.
Frequently asked questions
Is it smart to put money down on a VA loan?
Yes, it can be smart to put money down on a VA loan, but you don’t have to. A down payment of 5% or more lowers your one-time VA funding fee, while $0 down keeps cash free for repairs and emergencies.
What is the fastest way to save for a down payment?
The fastest way to save for a down payment is to choose a loan that requires less money down and increase your savings. FHA loans start at 3.5% down, and VA and USDA loans can start at $0. Set up monthly transfers to a high-yield savings account (one that pays higher interest).
How do most people save for a down payment?
Most save for a down payment by setting aside their own money, according to the National Association of Realtors (NAR). In NAR’s 2025 survey, 59% of first-time buyers used personal savings, and 22% got a gift or loan from relatives or friends.
Is $10,000 enough for a down payment?
Yes, it can be enough, depending on the home’s price and your loan. $10,000 covers 3% down on a home up to about $333,000, 3.5% down up to about $285,000 or 5% down up to $200,000. Closing costs are extra.
This article originally appeared on USA TODAY: It takes 6.5 years to save 20% for a home. You may not need to
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