You can likely buy your first home years sooner than you think. Choosing a starter home and putting down less than 20% can shrink a nearly 15-year timeline to about 7 years, according to Zillow. Both are decisions you control.
For many first-time buyers across St. Johns County, from St. Augustine to Palencia, owning a home can feel like it’s always a few years away. Saving takes time, rent keeps going out the door, and the goal seems to move further off each year. The good news is that the standard timeline you’ve probably heard assumes a mid-priced home and a 20% down payment. Change those two things and the math looks very different. Here is how it works.
How Long Buying Really Takes
First, a quick definition. “Breaking even” is the point where owning a home has cost you about the same as renting would have over the same period. After that point, owning starts to cost less than renting.
Zillow senior economist Kara Ng encourages buyers to think about how long they’d need to stay before owning beats renting, not just when they can afford to buy. That is a smart way to look at it, so let’s run the numbers.
According to Zillow, the typical buyer:
- Needs about 8.5 years to save a 20% down payment
- Needs roughly 6.2 more years to break even against renting
- Is looking at just under 15 years in total
That estimate assumes two things: a mid-priced home and a 20% down payment. It also varies by market, because prices and rents differ from one place to the next. If you change either assumption, your timeline gets shorter. If you change both, it can shrink a lot.
A Starter Home Can Cut Your Wait in Half
A starter home generally means a home in the lower third of local prices. In our area, that might be a condo, a townhome, or a single-family home that’s a little smaller or older than others nearby.
A lower price means a smaller down payment to save for, and a smaller monthly cost to carry. That adds up quickly. Zillow found that nationwide, a starter home takes about 7.2 years to save for and come out ahead of renting. That is half the time of the mid-priced scenario.That is half the time of the mid-priced scenario (see the graph below).
Here is how that breaks down:
- About 4.6 years to save for the down payment
- About 2.6 years to reach the break-even point
A starter home won’t solve every affordability challenge, but it can take years off the wait. If you’ve already been saving for a while, it may put the finish line much closer than you expected.
You Usually Don’t Need 20% Down
Many first-time buyers assume they need 20% down before they can even start looking. In most cases, you don’t. The National Association of Realtors reports that the median down payment for first-time buyers is 10% (see the graph below).
The minimums can go even lower, depending on the loan:
- Conventional loans: As little as 3% down for some buyers
- FHA loans: As little as 3.5% down
- VA loans: No down payment for eligible veterans and service members
- USDA loans: No down payment for buyers in certain eligible rural areas
There is also help with upfront costs. Down Payment Resource tracks 2,746 assistance programs nationwide, and some can be combined. Combining more than one eligible source of funding is called “layering,” and it can reduce what you need to bring to the closing table. Programs vary by location and eligibility, so it’s worth asking a local professional what is available for the area where you want to buy.
Put these pieces together (a lower price point, a smaller down payment, and help covering it) and the years you thought you needed start to come down.
Frequently Asked Questions
How long does it take to save for a first home?
Zillow estimates it takes about 8.5 years to save 20% for a mid-priced home. Buying a starter home and putting down less can bring that much closer to 4 to 5 years.
Do I really need 20% down to buy a house?
No. The median first-time buyer puts down 10%, and some loans allow 3% or 3.5% down. Eligible veterans and some rural buyers may be able to put down nothing at all.
What is a starter home, and is it worth it?
A starter home is typically a more affordable property in the lower third of local prices, like a condo, townhome, or smaller single-family home. For many buyers, it is the fastest way to start building equity instead of paying rent.
Bottom Line
Your first home may not be as far off as it feels. When the numbers make sense for you, buying a starter home and putting down less than 20% can get you there years sooner. A local agent can show you which starter homes in St. Johns County could fit your budget.
If you are considering buying or selling in Northeast Florida, contact Danielle Fraser, P.A.
Call or text 904-907-4559 , email danielle@