# How Much Money Do You Need to Buy a House? (2026) By Opendoor Editorial Team | 2026-04-29 The honest answer: more than most first-time buyers expect. The down payment gets all the attention, but it's only one of several upfront costs. Here's a complete breakdown of what you actually need to have ready before and at closing. ## The Full List of Upfront Costs | Cost | Typical Amount | Notes | | --- | --- | --- | | Down payment | 3%–20% of purchase price | VA/USDA loans: $0 | | Closing costs | 2%–5% of loan amount | Includes origination, title, prepaid taxes/insurance | | Earnest money deposit | 1%–3% of purchase price | Applied to closing costs at settlement | | Home inspection | $300–$600 | Out of pocket, not rolled into loan | | Appraisal fee | $500–$800 | Paid upfront or at closing, lender-dependent | | Moving costs | $1,000–$5,000+ | Local vs. long-distance varies widely | | Immediate repairs or updates | Varies | Budget 1%–2% of home value in year 1 | ## What You Need at Closing: Real Numbers Here's how the math works at different price points: ### $250,000 Home | Scenario | Down Payment | Closing Costs | Total Cash Needed | | --- | --- | --- | --- | | FHA loan (3.5% down) | $8,750 | $6,250–$12,500 | $15,000–$21,250 | | Conventional (5% down) | $12,500 | $6,250–$12,500 | $18,750–$25,000 | | Conventional (10% down) | $25,000 | $6,250–$12,500 | $31,250–$37,500 | | Conventional (20% down) | $50,000 | $6,250–$12,500 | $56,250–$62,500 | ### $400,000 Home | Scenario | Down Payment | Closing Costs | Total Cash Needed | | --- | --- | --- | --- | | FHA loan (3.5% down) | $14,000 | $8,000–$20,000 | $22,000–$34,000 | | Conventional (5% down) | $20,000 | $8,000–$20,000 | $28,000–$40,000 | | Conventional (10% down) | $40,000 | $8,000–$20,000 | $48,000–$60,000 | | Conventional (20% down) | $80,000 | $8,000–$20,000 | $88,000–$100,000 | ### $600,000 Home | Scenario | Down Payment | Closing Costs | Total Cash Needed | | --- | --- | --- | --- | | Conventional (5% down) | $30,000 | $12,000–$30,000 | $42,000–$60,000 | | Conventional (10% down) | $60,000 | $12,000–$30,000 | $72,000–$90,000 | | Conventional (20% down) | $120,000 | $12,000–$30,000 | $132,000–$150,000 | *Note: Earnest money (1%–3%) is typically paid upfront but credited back at closing toward these totals.* ## What Goes Into Closing Costs? Closing costs are not one fee — they're a bundle of charges from your lender, title company, attorney (in some states), and government: **Lender fees:** - Origination fee: 0.5%–1% of loan - Underwriting fee: $500–$1,000 - Discount points (optional): 1 point = 1% of loan, buys down your interest rate **Third-party fees:** - Title search and insurance: $500–$2,000 - Attorney fee (required in some states): $500–$1,500 - Home inspection: $300–$600 - Appraisal: $500–$800 - Survey (some transactions): $300–$700 **Prepaid items:** - Homeowners insurance (typically 12 months paid upfront): $1,000–$3,000 - Property tax escrow (2–3 months prepaid): Varies by location - Prepaid interest (days from closing to first payment): Based on your rate **Government fees:** - Transfer taxes: Vary widely by state and county (0%–2%+) - Recording fees: $50–$250 ## How to Reduce What You Pay at Closing **Seller concessions:** In buyer-friendly markets, you can negotiate for the seller to cover some or all of your closing costs. A seller credit of 2%–3% is not uncommon when markets are softer. **Lender credits:** You can accept a slightly higher interest rate in exchange for lender credits that offset closing costs. You pay less now but more over time. **Down payment assistance:** Many state and local programs help qualifying buyers cover their down payment and sometimes closing costs. [Read our guide to buying with no money down](/articles/how-to-buy-a-house-with-no-money-down) for details. **Shop multiple lenders:** Origination fees and lender charges vary significantly. Getting 3 Loan Estimates lets you compare total closing costs side-by-side. ## How Much Should You Have in Reserves? Beyond the closing costs, lenders want to see that you have reserves — savings left over after closing. Most lenders require at least 2 months of mortgage payments in savings after you close. More reserves can strengthen your application. **What to budget for year 1 beyond your mortgage:** - Property taxes: 1%–2% of home value/year (if not already escrowed) - Homeowners insurance: $1,000–$3,000/year - HOA fees (if applicable): $100–$500+/month - Maintenance/repairs: Budget 1%–2% of home value/year ($3,000–$8,000 on a $400k home) ## What Income Do You Need? Your income isn't a direct line to "how much you need" — but it determines how much house you can afford. Most lenders follow the 28/36 rule: - No more than **28% of gross monthly income** on housing (PITI: principal, interest, taxes, insurance) - No more than **36% of gross monthly income** on total debt (housing + car + student loans, etc.) **Example:** On a $6,000/month gross income, you can afford roughly $1,680/month in housing costs (28% rule). At 6.5% interest on a 30-year mortgage, that supports a loan of approximately $265,000. For a detailed affordability calculation by income bracket, read: [How Much Mortgage Can I Afford?](/articles/how-much-mortgage-can-i-afford) ## Frequently Asked Questions ### How much money do you need to buy a house for the first time? For a $300,000 home with an FHA loan (3.5% down), you need approximately $15,000–$25,000 total — covering the $10,500 down payment plus closing costs. With down payment assistance, some first-time buyers need as little as $5,000–$10,000 in savings. ### Can you buy a house with $10,000? In many affordable markets, yes — especially with FHA loans, VA loans, USDA loans, or down payment assistance programs that cover the down payment. On a $200,000 home, $10,000 covers a 3.5% FHA down payment ($7,000) with some left for closing costs and inspection fees. ### What's the minimum down payment to buy a house? The minimum is 0% with VA or USDA loans, 3% with Fannie Mae HomeReady or Freddie Mac Home Possible, and 3.5% with FHA. Conventional loans typically start at 5% without income limits. ### Do I need 20% down to buy a house? No. 20% down avoids private mortgage insurance (PMI) on conventional loans, which saves money long-term, but it's not required. Most first-time buyers put down 3%–10%. ### Is it better to have a bigger down payment? Usually yes — it reduces your monthly payment, eliminates PMI sooner, and gives you equity cushion. But there's a trade-off: putting 20% down on a $400,000 home ($80,000) leaves you with less cash for reserves, repairs, and emergencies. Balance is key. ### How long does it take to save for a house? Depends on your income and target price. On a median US salary (~$60,000/year), saving 10% ($6,000/year) toward a $400k house at 5% down ($20,000 + closing costs ≈ $35,000 total) takes approximately 6 years. Cutting expenses, bonuses, or two-income households can compress this significantly. ## The Bottom Line On a median-priced US home ($400,000), plan to have: - **Minimum:** $22,000–$34,000 (FHA, 3.5% down + closing costs) - **Typical:** $28,000–$50,000 (5%–10% down + closing costs) - **Comfortable 20% down:** $88,000–$100,000 Plus a 6-month emergency fund and 2+ months of mortgage payments in reserves after closing. For the full step-by-step buying process, see: [How to Buy a House](/articles/how-to-buy-a-house). If you're working with limited savings, read: [How to Buy a House with No Money Down](/articles/how-to-buy-a-house-with-no-money-down). --- *Originally published at [https://www.opendoor.com/articles/how-much-money-do-you-need-to-buy-a-house](https://www.opendoor.com/articles/how-much-money-do-you-need-to-buy-a-house)*