How much money do I need to buy a house?

Question 1

Kathleen Militello · Accepted Answer

The honest short answer: you usually need the down payment plus closing costs, which together typically run somewhere in the range of 3% to 10% of the purchase price for many first-time buyers, and no, you do not need 20% down. Twenty percent down avoids private mortgage insurance and can strengthen your offer, but most buyers put down less. Conventional loans go as low as 3% to 5% for many buyers, and FHA and other programs have their own lower minimums. Your lender can give you the exact number for your situation. Do not forget the money beyond the down payment: closing costs, which commonly run 2% to 5% of the price in Massachusetts, plus moving costs, inspections, and a small reserve for your new home's first surprises. The right number comes from a lender running your real numbers, not a rule of thumb. That meeting is free and it turns vague worry into a plan. Massachusetts closing costs include lender and title fees, an appraisal, and attorney costs, and in an attorney state those add a real line item. Knowing them up front keeps the budget honest.

Question 2

How much should I save for a down payment?

Kathleen Militello · Accepted Answer

The honest short answer: you usually need the down payment plus closing costs, which together typically run somewhere in the range of 3% to 10% of the purchase price for many first-time buyers, and no, you do not need 20% down. Twenty percent down avoids private mortgage insurance and can strengthen your offer, but most buyers put down less. Conventional loans go as low as 3% to 5% for many buyers, and FHA and other programs have their own lower minimums. Your lender can give you the exact number for your situation. Do not forget the money beyond the down payment: closing costs, which commonly run 2% to 5% of the price in Massachusetts, plus moving costs, inspections, and a small reserve for your new home's first surprises. The right number comes from a lender running your real numbers, not a rule of thumb. That meeting is free and it turns vague worry into a plan. Massachusetts closing costs include lender and title fees, an appraisal, and attorney costs, and in an attorney state those add a real line item. Knowing them up front keeps the budget honest.

Question 3

Do I really need 20% down to buy a house?

Kathleen Militello · Accepted Answer

The honest short answer: you usually need the down payment plus closing costs, which together typically run somewhere in the range of 3% to 10% of the purchase price for many first-time buyers, and no, you do not need 20% down. Twenty percent down avoids private mortgage insurance and can strengthen your offer, but most buyers put down less. Conventional loans go as low as 3% to 5% for many buyers, and FHA and other programs have their own lower minimums. Your lender can give you the exact number for your situation. Do not forget the money beyond the down payment: closing costs, which commonly run 2% to 5% of the price in Massachusetts, plus moving costs, inspections, and a small reserve for your new home's first surprises. The right number comes from a lender running your real numbers, not a rule of thumb. That meeting is free and it turns vague worry into a plan. Massachusetts closing costs include lender and title fees, an appraisal, and attorney costs, and in an attorney state those add a real line item. Knowing them up front keeps the budget honest.

How much money do I need to buy a house?

Related questions

Ask your own version of this question.

Ready to make a smart move?