Saving for a Home? It Could Take Homebuyers 21 Years
October 13, 2026
Columbia, MO. - Depending on where buyers live, they could spend anywhere from about six years to more than two decades saving for a 20% down payment, according to a new Veterans United Home Loans analysis of the nation’s largest metro areas.
The report found that it can take a typical two-income household an average of 6.5 years to save a 20% down payment, nearly double the 3.48 years it took a decade ago in 2015.
The timeline to save for a 20% downpayment ranges by market, from about 5.6 years in Pittsburgh, the most affordable major metro, to roughly 21 years in San Jose, the least affordable. In both cities, and the metros in between, buyers using a VA or USDA loan, which require no down payment, could close in a fraction of that time.
“Home prices have climbed steadily for years, raising the bar on how much cash buyers think they may need before making an offer,” said Chris Birk, vice president of mortgage insight at Veterans United Home Loans. “For buyers who know their options, the upfront hurdle can be much lower than many realize. VA and USDA loans require no down payment at all, while FHA and conventional loans can require as little as 3.5% or 3% down, respectively. For a lot of buyers, that’s the difference between years of saving and getting into a home sooner.”
The gap between loan types grows alongside home prices. On a median priced home in Pittsburgh, the comparison between closing costs and a full 20% down payment is about $46,000. In San Jose, it is more than $372,000.
"In the most expensive markets, the loan type is not just a convenience," Birk said. "It can be the difference between buying this year and not buying for a decade."
The findings show how metro areas and home prices can shape the upfront savings hurdle for buyers in today’s market. It also highlights the impact of low and no-down-payment options, including VA, USDA, FHA, and conventional loans, especially in high-cost markets.
10 most affordable major metros:
Metro | Median Home Price | Median Income | Home-Price-to-Income Ratio | Closing Only | 3% Down | 20% Down |
|---|---|---|---|---|---|---|
Pittsburgh, PA | $237,400 | $77,214 | 3.07 | 0.7 years | 1.5 years | 5.6 years |
Cleveland, OH | $236,900 | $72,532 | 3.27 | 0.8 years | 1.6 years | 5.9 years |
St. Louis, MO | $294,800 | $81,679 | 3.61 | 0.9 years | 1.7 years | 6.5 years |
Detroit, MI | $276,700 | $76,403 | 3.62 | 0.9 years | 1.7 years | 6.5 years |
Oklahoma City, OK | $265,000 | $72,930 | 3.63 | 0.9 years | 1.7 years | 6.6 years |
Cincinnati, OH | $314,900 | $81,489 | 3.86 | 0.9 years | 1.8 years | 7.0 years |
Dallas, TX | $366,600 | $92,733 | 3.95 | 1.0 years | 1.9 years | 7.1 years |
Louisville, KY | $294,700 | $74,305 | 3.97 | 1.0 years | 1.9 years | 7.2 years |
Atlanta, GA | $372,000 | $92,344 | 4.03 | 1.0 years | 1.9 years | 7.3 years |
Minneapolis, MN | $394,900 | $97,928 | 4.03 | 1.0 years | 1.9 years | 7.3 years |
Closing cost estimates assume 3% of the loan amount. Because 0% down payment scenarios finance the full purchase price in this model, closing costs are based on the full home price. For 20% down scenarios, closing costs are based on the remaining 80% loan amount, with the down payment added separately.
To view the full report and methodology, visit: https://www.veteransunited.com/education/20-percen...
About Veterans United Home Loans
Veterans United Home Loans, a full-service national direct lender based in Columbia, Missouri, closed more than $26 billion in loans in fiscal 2025 and was the nation’s No. 1 VA purchase lender, according to Department of Veterans Affairs Lender Statistics. The company's mission is to help Veterans and service members take advantage of the home loan benefits earned by their service.
VeteransUnited.com | 1-800-884-5560 | 550 Veterans United Drive, Columbia, MO 65201 | Veterans United Home Loans NMLS # 1907 (www.nmlsconsumeraccess.org). Private lender. Not endorsed or sponsored by the Dept. of Veterans Affairs or any government agency. Licensed in all 50 states. Military advisors are paid employees of Veterans United. For State Licensing information, please visit www.veteransunited.com/licenses. Equal Housing Opportunity.
Veterans United Facts
- $26.8 billion
in loans financed in 2025 - Defense Employer Support Freedom Award Recipient
by the Secretary of Defense - More than 5,000 employees
with 24 branches nationwide
- More than $155 million
raised for nonprofit charitable arm, Veterans United Foundation since 2011 - Ranked in Fortune 100 Best Companies to Work For
every year since 2016, with a high of 14th (2022)
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Chris BirkChris is the nation’s leading expert on VA Loan benefits. He authored The Book on VA Loans in 2011, and maintains the VA Loans Insider blog. His analysis and articles have appeared at a host of sites and publications, including the Washington Post, The New York Times, the Wall Street Journal, ABC News, USA Today, the Houston Chronicle and more. Members of the media may request a free copy of The Book on VA Loans to learn more about the VA loan program.
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