Down Payment & Closing Costs
Calculate the total cash you need to buy a home — down payment plus closing costs at 2–5% of the loan. Compare 0% VA, 3.5% FHA, 10%, and 20% down scenarios and see the real check you'd write at closing.
How much cash do you actually need to buy this house? It's the down payment plus closing costs — and closing costs (lender fees, title, taxes, prepaid escrow) run 2–5% of the loan on top, which is the part that surprises first-time buyers.
Home price
The purchase price you're budgeting for. The U.S. median sale price is around $420,000, but this is entirely local — use listings in your target neighborhood.
Down payment
What percent of the price you'll pay upfront. This is a choice, not a fixed rule: VA loans allow 0% down, conventional loans start at 3%, FHA at 3.5% (with a 580+ credit score), and 20% is the threshold where conventional loans drop PMI. Bigger down = bigger check today but a smaller loan, lower monthly payment, and slightly lower closing costs.
Total cash needed at closing
$47,200–$58,000
$40,000 down (10%) + $7,200–$18,000 closing costs
Under 20% down: budget for PMI in the monthly payment
A conventional loan below 20% down adds private mortgage insurance to your monthly payment (FHA loans carry their own MIP; VA loans have none). That's a monthly cost, not cash at closing — it's not in this total — but it belongs in your affordability math, and on a conventional loan it drops off once you reach 20% equity.
Three ways to shrink the check
Seller credits — in a balanced market you can negotiate the seller paying part of your closing costs (capped by loan type, commonly 3–6%). Lender credits — a slightly higher rate in exchange for lower fees, worth it if you'll refinance or move within a few years. Assistance programs — state and local down-payment assistance is real and widely unclaimed; income limits are higher than people assume. And always compare Loan Estimates from 2–3 lenders — the fee spread between them is often $2,000+.
Cash to close = down payment + closing costs at 2–5% of the loan (per Fannie Mae), which includes lender fees, title insurance, appraisal, government taxes, and prepaid property taxes and insurance. Your exact figure comes on your lender's Loan Estimate; state transfer taxes swing it most. Excludes earnest money (credited back at closing), moving costs, and any lender-required reserves.
💡About this calculator▼
Ask most first-time buyers what they're saving for and they'll name the down payment. Ask a closing attorney what surprises buyers at the table and they'll name everything else: the lender fees, title insurance, appraisal, government recording taxes, and months of prepaid property taxes and homeowners insurance that together make up closing costs — typically 2% to 5% of your loan amount, paid on top of the down payment. On a $400,000 home with 10% down, that's $7,200 to $18,000 of cash beyond the $40,000 you saved — real money that determines whether you can actually close.
This calculator answers the question that matters at the finish line: how big is the total check? Enter the home price and your down payment percentage, and it shows the down payment, the closing cost range on the resulting loan, and the total cash needed at closing.
The down payment itself is a choice with more room than most buyers realize. VA loans allow 0% down for eligible veterans and service members. Conventional loans start at 3%, FHA at 3.5% (with a 580+ credit score). 10% is a common middle path, and 20% is the threshold where conventional loans shed private mortgage insurance. The preset buttons let you flip between these scenarios and watch the total move — and the trade-offs run in both directions: a bigger down payment means a bigger check today but a smaller loan, a lower monthly payment, and (since closing costs scale with the loan) slightly lower fees too. Notice what the 0%-down scenario reveals: even with no down payment at all, you still need thousands in cash, because closing costs never go to zero. That's the number this page exists to put in your budget.
One addition, two parts — with the percentages applied the way lenders actually apply them.
Down payment = home price × your chosen percentage: • 0% (VA, eligible borrowers) · 3% (conventional minimum) · 3.5% (FHA, 580+ credit) · 10% · 20% (no PMI on conventional)
+ Closing costs = 2% to 5% of the loan amount (per Fannie Mae) — not the price. The loan is what's left after your down payment, so a bigger down payment slightly shrinks the closing costs too. What's inside that 2–5% (per the CFPB): lender/origination fees, appraisal, title insurance, government taxes and recording fees, and prepaid expenses — property taxes, homeowners insurance, and interest until your first payment.
= Total cash to close.
Example — $400,000 home, 10% down: $40,000 down + ($360,000 loan × 2–5% = $7,200–$18,000) = $47,200–$58,000 total.
Same home, 0% down (VA): $0 down + ($400,000 × 2–5%) = $8,000–$20,000 — never zero. Same home, 20% down: $80,000 + $6,400–$16,000 = $86,400–$96,000 — biggest check, no PMI.
📐How it's calculated▼
Cash to close = (price × down%) + (price − down payment) × 2–5%.
The closing percentage applies to the loan, not the price — exactly as Fannie Mae states it ("2% to 5% of the value of your mortgage").
Example — $350,000 home, FHA-style 3.5% down:
→ Down payment: $350,000 × 3.5% = $12,250 → Loan: $337,750 → closing costs: × 2–5% = $6,755–$16,888 → Cash to close: $19,005–$29,138 — the down payment is barely 40% of the real number at the top of the range.
Example — $400,000 home, 20% down:
→ $80,000 down + $320,000 loan × 2–5% ($6,400–$16,000) = $86,400–$96,000.
📎Sources:Fannie Mae — Closing Costs Calculator: closing costs "usually range from 2% to 5% of the value of your mortgage," paid in addition to the down payment,CFPB — What are closing costs?: the components — appraisal, title insurance, government taxes, and prepaid property taxes, insurance, and interest,VA.gov — Purchase Loan: no down payment required as long as the sales price doesn't exceed the home's appraised value
🔍Finding your inputs▼
Home price: The purchase price you're budgeting for — not the listing price of a dream house, but the realistic number in your target neighborhood. The U.S. median sale price hovers around $420,000, but that average conceals enormous local spread; pull actual recent sales where you're looking. If you're between price points, run both — cash to close scales almost linearly with price.
Down payment: The percentage of the price you pay upfront, and a genuine decision rather than a fixed rule. The floors by loan type: 0% for VA loans (eligible veterans, service members, and some surviving spouses — the VA's own rule is no down payment as long as the price doesn't exceed the appraised value); 3% for conventional loans through Fannie/Freddie's 97-LTV first-time-buyer programs; 3.5% for FHA with a credit score of 580 or above (10% for scores 500–579). Above the floors, more down buys you: a smaller loan and monthly payment, slightly smaller closing costs (they scale with the loan), better rate offers, and — at 20% on a conventional loan — no private mortgage insurance at all. The presets cover the landmark percentages; type any other number for a custom scenario. One framing that helps: below 20%, PMI is the price of buying sooner, and it's a monthly cost (typically 0.5–1.5% of the loan per year) that drops off a conventional loan at 20% equity — waiting years to save the full 20% isn't automatically the better deal if prices or rents are rising.
⚠️Special situations▼
I'm doing 0% down (VA) — why do I still need thousands at closing?
Because the down payment and closing costs are two different bills, and the VA benefit only eliminates one of them. The VA's zero-down rule means you don't have to bring equity to the table — but the loan still has to be originated, the title still has to be insured, the county still records the deed, the appraisal still gets done, and your escrow account still gets pre-funded with months of property taxes and insurance. Those closing costs run 2–5% of the loan, and at 0% down your loan is the entire purchase price, so the closing-cost dollars are actually at their maximum: $8,000–$20,000 on a $400,000 home. There's also a VA-specific item: the funding fee, a one-time charge of roughly 1.25–3.3% of the loan for most borrowers (waived entirely for veterans with service-connected disabilities), which can be paid at closing or — as most borrowers choose — rolled into the loan. The good news is the VA program is unusually generous about covering the rest: sellers can pay all of your ordinary closing costs plus up to 4% of the price in concessions, VA loans carry no monthly mortgage insurance at all, and the VA limits certain fees lenders can charge you. Practical playbook for a low-cash VA purchase: negotiate seller-paid closing costs in the offer (very achievable in balanced or buyer-leaning markets), roll the funding fee into the loan, and shop lenders on their fees — the spread matters even more when closing costs are your entire cash requirement. Zero-down doesn't mean zero-cash, but a well-negotiated VA purchase can get the actual check surprisingly close to it.
The seller offered to pay closing costs — how does that change my number?
Seller credits (formally 'seller concessions') directly reduce the cash you bring, dollar for dollar, up to caps set by the loan type — so a meaningful credit can wipe out most of the closing-cost half of this calculator's total. The caps: conventional loans allow 3% of the price with less than 10% down, 6% with 10–25% down, and 9% above that; FHA allows 6% regardless of down payment; VA allows all ordinary closing costs plus up to 4% in other concessions. Two things to understand about how credits really work. First, the credit can only cover actual costs — closing costs, prepaids, points, sometimes the funding fee — not go into your pocket; if the credit exceeds your costs, the excess is simply lost, so size the ask to your Loan Estimate. Second, and more important: a seller credit isn't free money, it's negotiating currency. In a competitive market, an offer asking for 3% in credits competes like an offer 3% lower in price — because to the seller, it is. The strategic use case is cash-constrained buyers: asking $410,000 with a $10,000 closing credit instead of $400,000 flat costs the seller the same, but moves $10,000 of your burden from cash-at-closing into the mortgage (you finance the slightly higher price over 30 years). For a buyer with plenty of cash, the lower price is mathematically better; for a buyer scraping to close, the credit is often what makes the purchase possible at all. Where credits are easiest to get: new construction (builders love credits tied to using their preferred lender — compare that lender's Loan Estimate against outside quotes anyway), homes sitting on the market, and any buyer's-market conditions. Just re-run this calculator with the credited amount subtracted from the closing range to see your true cash need.
Should I pay points at closing to lower my rate, and does that change my cash to close?
Discount points are prepaid interest — typically 1% of the loan per point, each point buying roughly 0.25% off your rate — and yes, they're paid at closing, so buying points raises your cash-to-close above this calculator's estimate (they live inside the 2–5% band when modest, on top of it when aggressive). Whether they're worth it is a break-even calculation with a clear structure: divide the upfront cost by the monthly savings to get months-to-break-even, then compare that against how long you'll realistically keep this loan — not just the house, the loan. Example: on a $360,000 loan, one point costs $3,600 and might cut the payment by roughly $60/month → break-even around 60 months. Keep the loan five-plus years and points paid off; refinance or sell sooner and you burned the cash. The honest considerations that push against points for most buyers right now: if there's any meaningful chance you'll refinance (rates fall, credit improves, you tap equity), the point money evaporates at the refi; if paying points would drain your post-closing reserves, the safety margin is worth more than the rate; and if you're choosing between a bigger down payment and points, the bigger down payment is usually the better use of the same dollars for buyers below 20% (it also shrinks PMI). When points do make sense: you're confident this is a decade-plus loan, you have surplus cash after reserves, and — this matters — you've already exhausted the cheaper ways to a better rate, namely shopping 2–3 lenders and improving the credit tier. Also know the reverse trade exists: lender credits (negative points) accept a slightly higher rate in exchange for reduced closing costs — exactly the right move for a cash-tight buyer who expects to refinance within a few years. Model both directions on real Loan Estimates before deciding; the same lender will quote you the menu.
I keep hearing about down payment assistance programs — are they real, and who qualifies?
They're real, they're numerous — over 2,000 programs nationally, run by state housing finance agencies, counties, cities, and nonprofits — and they're chronically under-used, largely because buyers assume they won't qualify. The assumption is usually wrong: income limits commonly run to 80–120% of area median income (in high-cost metros that can mean six-figure household incomes qualify), and while most programs target first-time buyers, the standard federal definition of 'first-time' is generous — anyone who hasn't owned a primary residence in the past three years, which covers plenty of people who owned before a divorce, relocation, or years of renting. What the programs actually provide, in rough order of prevalence: deferred-payment second loans (no payments, forgiven after 5–15 years of occupancy or repaid when you sell/refinance), forgivable grants, low-interest second mortgages that cover the down payment and sometimes closing costs, and mortgage credit certificates (a federal income-tax credit for part of your interest). Typical amounts run $5,000–$25,000, and most programs pair with standard FHA, VA, or conventional 97-LTV first mortgages — meaning DPA can stack a 3–3.5%-down program down to near-zero effective cash. The trade-offs to check before celebrating: occupancy requirements (the forgiveness clock resets or the balance comes due if you move out early), sometimes a modestly higher first-mortgage rate on program loans, homebuyer-education course requirements (a few hours, often online), purchase-price caps, and slower closings (an extra approval layer — build 1–2 weeks of buffer into your contract). Where to look: your state housing finance agency's website is the front door (every state has one), your city and county housing departments layer local money on top, and any loan officer who regularly works with first-time buyers can run the match — a lender who's never heard of your state's DPA program is a signal to find another lender. For a cash-constrained buyer, an afternoon of DPA research is routinely worth $10,000-plus against this calculator's bottom line.
❓Common questions▼
How much money do I need to buy a house?
The cash you need at closing is the down payment plus closing costs — and for most buyers the honest total runs 5% to 25% of the purchase price depending on the loan program you choose. Working through a $400,000 home: closing costs run 2% to 5% of the loan amount (per Fannie Mae) and cover lender fees, the appraisal, title insurance, government recording and transfer taxes, and prepaid items — months of property taxes and homeowners insurance loaded into your escrow account upfront. On top of the down payment, that's real money: with 10% down ($40,000), the closing costs on the $360,000 loan add $7,200–$18,000, for a total of $47,200–$58,000. With FHA's 3.5% minimum down, the same house needs roughly $22,000–$34,000 total. With a VA loan's 0% down, you still need $8,000–$20,000 — closing costs never go to zero. And with 20% down, you're writing an $86,000–$96,000 check, but you skip PMI and get the strongest offer position. Beyond closing day, prudent budgeting also holds back moving costs, immediate repairs, and reserves — some lenders require showing 2–6 months of mortgage payments still in the bank after closing. If those totals look daunting, three levers routinely shrink them: seller credits toward closing costs (standard in balanced markets, capped at 3–9% by loan type), lender credits (a slightly higher rate for lower fees today), and state or local down-payment-assistance programs, which are far more accessible than most buyers assume. Enter your target price and down payment in the calculator above for your exact breakdown.
What are closing costs and why are they 2–5% of the loan?
Closing costs are everything it takes to manufacture and record the mortgage plus the upfront funding of the accounts that run alongside it — Fannie Mae's guidance puts them at 2% to 5% of the value of your mortgage, paid in addition to your down payment. Itemized, the money goes to four places. Lender charges: origination or underwriting fees for making the loan, plus any discount points you choose to buy the rate down. Third-party services: the appraisal (the lender's evidence the house is worth the loan), the title search and title insurance (protecting against ownership disputes and liens — the lender's policy is required, the owner's policy is optional and wise), the survey in some states, and attorney or settlement-agent fees. Government charges: recording fees and — the big variable — state and local transfer taxes, which range from essentially nothing in some states to more than 2% of the price in others; this is the single biggest reason the honest range is 2–5% rather than a tight number. Prepaid expenses (per the CFPB: property taxes, homeowners insurance, and interest until your first payment is due): your first year of homeowners insurance, several months of property taxes to seed the escrow account, and per-diem interest covering the gap between closing day and your first payment cycle — not fees at all, but your own future obligations collected early, which is why even a 'no-fee' loan needs cash at the table. Why it scales with the loan: most lender charges and title premiums price off the loan amount. You'll see every line itemized on the Loan Estimate (within three business days of applying) and finalized on the Closing Disclosure (three days before closing) — and because lender fees vary widely for identical loans, comparing two or three Loan Estimates is the most reliable way to land at the 2% end instead of the 5% end.
Is it better to put 20% down or buy sooner with less down?
Twenty percent down is a threshold, not a rule — and for many buyers, waiting years to reach it costs more than the PMI it avoids. What 20% genuinely buys you on a conventional loan: no private mortgage insurance (a monthly charge of roughly 0.5–1.5% of the loan per year below 20%), somewhat better rate offers, a smaller loan and payment, and an offer sellers read as strong. Those are real benefits. The honest counter-math: PMI is temporary — on a conventional loan it can be removed once you reach 20% equity (and drops automatically at 22%), which arrives through both payments and appreciation — while the years spent saving toward 20% have their own price: the rent paid meanwhile, and the risk that home prices rise faster than the savings account grows. A buyer who purchases at 5–10% down and pays $150–$250/month of PMI for four or five years often comes out far ahead of one who waited five years to save the full 20% into a market where the same house now costs $60,000 more. When less-down-sooner tends to win: rising or stable markets, buyers with strong income but thin savings, and anyone whose rent approximates the mortgage payment anyway. When 20% deserves the wait: if the smaller payment is what makes the budget sustainable, if your market is flat or falling, if you can reach 20% within a year or so anyway, or if the alternative is draining every dollar of reserves to close (a fully-spent buyer is one furnace failure from trouble; keep a cushion regardless of the percentage). Note the middle paths, too: 10% down roughly halves PMI versus 5%, FHA's own MIP rules differ (it generally sticks for the loan's life at minimum down payment, making refinancing into a conventional loan the eventual exit), and VA loans skip mortgage insurance entirely at 0% down. Run the calculator's presets side by side and weigh the check you can write today against the payment you'll carry monthly — it's a genuine trade, not a moral test.
What is earnest money, and is it part of my down payment?
Earnest money is your good-faith deposit made when a seller accepts your offer — typically 1% to 3% of the purchase price, held in escrow by the title company or brokerage, never handed to the seller directly — and here's the key budgeting fact: it's not an additional cost on top of this calculator's total. At closing, your earnest money is credited toward what you owe, effectively becoming the first installment of your down payment and closing costs. The timing is what matters for cash flow: you write the earnest check within days of offer acceptance — weeks before closing — so on a $400,000 purchase, $4,000–$12,000 of your cash-to-close leaves your account early. Budget for the sequence, not just the total. What earnest money is actually for: it compensates the seller if you walk away without a contractual reason, which is why your contract's contingencies are what protect it. The standard three — inspection (you can exit over inspection findings within the contingency window), financing (you can exit if the loan falls through), and appraisal (you can exit or renegotiate if the house appraises below the price) — each let you leave with your earnest money refunded, provided you act within their deadlines. Where buyers lose earnest money: waiving contingencies to make an offer competitive (a real and common risk in hot markets — waiving inspection converts your deposit into a bet on the house's condition), missing deadlines, or simply changing their minds after contingencies expire. Practical notes: bigger earnest deposits make offers read stronger at no true cost (the money was going to closing anyway — as long as your contingencies are intact); confirm the escrow holder is a neutral party; wire-transfer fraud is a genuine threat in this exact transaction, so verify wiring instructions by phone with a number you find independently, never one from an email. Then, when reading this calculator's result, remember: total cash needed stays the same — earnest money just pays part of it early.
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