Key takeaways

• 10% down is broadly accepted as a down payment on conventional loans; PMI typically applies under 20%

• Using a 10%-of‑discretionary‑income approach, Iowa ranks fastest to a 10% down payment; California, Montana, and New York are among the slowest

• Realtor.com’s 2026 forecast calls for slightly lower payment pressure as rates average ~6.3%, inventory rises ~8.9%, and price growth moderates to ~2.2%

• Saving 20% generally takes about twice as long as 10%, all else equal

States with moderate home prices and solid incomes such as in some of the Midwest see the quickest paths to saving a down payment for a house; high‑cost coastal markets take far longer. 2026 could bring a touch more inventory and slightly better payment math, but the fastest states remain the ones where incomes, prices, and living costs are better aligned.

A 10% target is a practical path into homeownership that many lenders support on conventional loans, typically with private mortgage insurance (PMI) until equity reaches 20%. That smaller target can make the difference between saving for years versus saving for a decade or more in higher‑cost markets. And it aligns with how households actually budget: After taxes and essentials, only a slice of income is truly available for saving.

By setting aside 10% of “fractional” or discretionary income (what’s left after taxes and essentials), some states are faster than others for those saving for a 10% down payment on a home. The common thread in the fastest states isn’t flashy paychecks; it’s the combination of manageable home values and costs that leave enough room to save. On the flip side, states with steep prices and heavier living costs stretch timelines dramatically.

Read more: The homebuying process: A step-by-step guide

The dream of home ownership

More than half (52%) of Americans equate owning a home to financial success, according to Empower research, and they hope to purchase a house by age 38. This comes at a time when the typical age of first-time buyers has climbed to a record 40 years, according to the National Association of Realtors.¹

Why 10% down works — and when 20% still matters

A 10% down payment reduces the loan size and payment without requiring the multi‑year runway that a full 20% can demand in expensive states. Conventional conforming loans commonly allow 10% down with PMI, which usually falls off once the loan‑to‑value ratio hits 80% per investor guidelines. Many mainstream programs permit even lower minimums (3%–5% for eligible first‑time or income‑qualified borrowers), and VA‑backed loans can require no down payment for qualified buyers.² Twenty percent still has advantages — no PMI, stronger pricing, and wider eligibility for some jumbos, condos, or co‑ops — but the trade‑off is time: Targeting 20% typically doubles the savings horizon if monthly contributions are unchanged.

What the 2026 backdrop may change

The 2026 housing outlook points to small tailwinds. Realtor.com expects mortgage rates to average about 6.3% next year, existing‑home sales to edge up to roughly 4.13 million, active inventory to climb nearly 9%, and price growth to cool to about 2.2%.³ That mix pulls the typical payment share of income down to ~29.3%, just under the common 30% affordability marker.

Rates in the mid-6% range don’t reorder the state leaderboard, but can shorten timelines where local supply actually materializes. For renters, any stabilization in rents alongside improved for‑sale options helps discretionary income go further.

Fastest states to a 10% down payment

A Consumer Affairs analysis lists these states as having the shortest paths under the 10%‑of‑discretionary‑income savings rule of thumb.⁴ The dollar amounts are 10% of each state’s median home sale price.

• Iowa — 8.7 years; 10% down ≈ $24,740

• Ohio — 9.9 years; 10% down ≈ $26,170

• Texas — 10.3 years; 10% down ≈ $33,940

• Maryland — 10.3 years; 10% down ≈ $43,930

• North Dakota — 10.6 years; 10% down ≈ $29,820

Coming in fifth through tenth are Kansas, Oklahoma, Illinois, Alaska, and Indiana.

Slowest states to a 10% down payment

States with the longest timelines reflect high home values and heavier living costs relative to incomes:⁵

• California — 25.1 years; 10% down ≈ $83,240

• Montana — 24.4 years; 10% down ≈ $54,850

• New York — 23.1 years; 10% down ≈ $57,300

• Hawaii — 21.0 years; 10% down ≈ $74,440

• Wyoming — 20.3 years; 10% down ≈ $44,830

Other slow‑lane states include Rhode Island, Massachusetts, Oregon, Maine, and Colorado.

How the time span was computed

These lists reveal how nearly the same down payment, as with Maryland and Wyoming, can take significantly different lengths of time to save. That’s because it’s based on median household income, that varies state to state, and what’s left after taxes and essentials.

Maryland’s median income is roughly $102,900, leaving about $42,600 after taxes and core expenses, while Wyoming’s median income is about $75,500, leaving roughly $22,100. Under a “save 10% of what’s left” rule, that translates to about $4,300 a year set aside in Maryland versus about $2,200 in Wyoming. With nearly twice as much going into savings each year, Maryland reaches a similar down‑payment goal in roughly half the time — around 10.3 years compared with Wyoming’s 20.3.

Down payment options

• Conventional conforming loans: 10% down is standard; PMI applies until sufficient equity is reached or can be removed per investor guidelines.

• Low down payment options (3%–5%): Offered through Fannie Mae and Freddie Mac programs for qualified buyers, often with income or first‑time‑buyer criteria.

• Piggyback arrangements (80‑10‑10): An alternative that can avoid monthly PMI, paired with the complexity and cost of a second lien.

• When 20% is common: Jumbo loans, some condos and co‑ops, new‑construction deposits, or highly competitive offer situations. (Program rules vary by lender and market.)