How much do you need to buy a home?
The cash you need at closing is more than the down payment. It also includes closing costs, which are often 2% to 5% of the loan. The calculator adds both, subtracts what you have saved and estimates how long it will take to save the rest with monthly deposits.
Minimum down payments
- Conventional loans – as little as 3% for some first-time buyer programs.
- FHA loans – 3.5% with a credit score of 580 or higher.
- VA and USDA loans – often 0% for eligible borrowers.
- 20% down – lets you avoid private mortgage insurance (PMI) on a conventional loan and lowers your payment.
Many states and cities offer down payment assistance grants or low-cost loans for first-time buyers.
Frequently asked questions
When does PMI go away?
On a conventional loan you can ask to cancel PMI once you reach 20% equity based on the original value, and it must end automatically at 22% equity if you are current on payments.
Can family help with my down payment?
Yes. Most loan programs accept gift money from relatives with a signed gift letter showing it does not need to be repaid.
Is it better to put 20% down?
Not always. A smaller down payment gets you into a home sooner and keeps cash for emergencies, but costs more each month.