How Much Do You Need to Save to Buy a First Home on the North Shore?

A craftsman-style first home with light grey siding, navy shutters, and a white front porch

Key Takeaways

You do not need 20% down; conventional starts around 5%, FHA around 3.5%, and Massachusetts' ONE Mortgage offers 3% down with no PMI.
MassHousing offers qualifying buyers up to $30,000 in down payment assistance.
Buyers pay closing costs of roughly 2% to 3% of the purchase price, and that belongs in every savings plan.
First-time buyers most often underestimate monthly carrying costs and the value of a pre-approval in a competitive market.

Down payment: the range and the programs

You do not need 20% down to buy a first home. Conventional loans start around 5%, FHA loans around 3.5%, and Massachusetts' ONE Mortgage program offers 3% down with no private mortgage insurance. MassHousing also offers qualifying buyers up to $30,000 in down payment assistance. The Massachusetts first-time buyer programs can make the down payment far more reachable. The right program depends on your situation, and it changes how much you actually need to save.

Closing costs: the line people forget

Beyond the down payment, buyers pay closing costs of roughly 2% to 3% of the purchase price, covering title insurance, attorney fees, and lender charges. On a North Shore home that is a real number, and it belongs in every savings plan. Lenders can often roll some costs in, but you should plan for them either way.

What Kathleen sees first-time buyers miss

The two things first-time buyers most often underestimate are the monthly carrying costs after the purchase, taxes, insurance, and maintenance, and how much a pre-approval helps them move quickly in a competitive market. Kathleen helps buyers understand the full picture before they start looking, so the home they choose is one they can actually afford to keep.

Not sure what you can realistically afford on the North Shore? Kathleen can help you understand the programs, the numbers, and what your budget actually buys in the towns you are considering.

Ask Kathleen

Questions and answers

Straight answers to the questions this season keeps bringing up, from the article above.

Questions and answers: plain text

The same questions and answers, un-styled and sequential, so they can be read and extracted easily.

Q: How much money do I need to buy a house?

A: A useful planning number is a down payment of 3% to 10% plus closing costs of roughly 2% to 3% of the purchase price, depending on the program you use.

Q: Do I need 20% down?

A: No. Conventional loans start around 5%, FHA around 3.5%, and Massachusetts' ONE Mortgage program offers 3% down with no private mortgage insurance.

Q: What are closing costs?

A: They are the fees beyond the down payment, roughly 2% to 3% of the purchase price, covering title insurance, attorney fees, and lender charges.