How Much Money Do You Need to Buy a House? The Full Number, Not Just the Down Payment

Crystal 

Walker

Content Writer

For a $350,000 home, a prepared buyer typically needs $40,000 to $48,000 in cash: a modest down payment, closing costs, prepaid taxes and insurance, moving expenses, and a reserve for the first months of ownership. That's the answer most guides bury, so it goes first here. The rest of this article shows where each dollar goes, which loan types shrink the number, and how to tell the difference between what a lender will approve and what you can actually live with.

If you're earlier in the process, start with our home buying hub; if assistance programs might apply to you, our guide to first-time buyer programs covers what's available and how to qualify.

1. The Down Payment: Smaller Than You Think

The down payment is the purchase price portion you pay upfront, and it's set by your loan type, not by tradition. Conventional loans allow as little as 3 to 5 percent down for many buyers, FHA loans start at 3.5 percent, and VA and USDA loans offer zero-down options for eligible military buyers and qualifying rural or suburban areas respectively. On a $350,000 home, that means the entry point ranges from $0 to $17,500, while the old 20 percent benchmark, $70,000, remains relevant for exactly one reason: it's the line where private mortgage insurance disappears.

Putting less than 20 percent down is not a mistake on its own. Depending on your market, your timeline, and what else that capital could do, a smaller down payment plus PMI can beat waiting years to save the full 20. The trade-off is real, though, and it's covered in section 4.

State and local assistance programs can cut the upfront number further, and buyers routinely leave that money unclaimed simply because nobody told them to ask. It's worth twenty minutes of research before you set your savings target.

2. Closing Costs: The Line Most Budgets Miss

Closing costs are the fees that finalize your loan and transfer ownership, and they typically run 2 to 5 percent of the purchase price: $7,000 to $17,500 on a $350,000 home. The usual contents: the lender's origination fee, the appraisal, title search and title insurance, your home inspection, attorney fees where your state requires them, and two to three months of property taxes and insurance collected upfront.

You won't have to guess at your number. Within three business days of your application, your lender is required to send a Loan Estimate itemizing your specific costs; the CFPB's Loan Estimate explainer shows you how to read it line by line.

One negotiable variable: seller concessions can cover a portion of closing costs, shifting thousands off your cash-to-close. Whether asking is smart or deal-killing depends on your market's temperature, which is exactly the kind of judgment call an experienced local agent earns their keep on.

3. Your Monthly Payment: PITI

After closing, the recurring number takes over. Your payment bundles principal, interest, taxes, and insurance, PITI, and on our example home with 5 percent down and rates in the 6.5 to 7 percent range, it lands roughly here: $2,100 to $2,250 for principal and interest, $300 to $700 for property taxes depending heavily on location, and $100 to $200 for insurance. Call it $2,500 to $3,150 per month, illustrative rather than quoted, since your loan terms and zip code set the real figure.

4. PMI: What It Costs and When It Leaves

Put down less than 20 percent on a conventional loan and the lender requires private mortgage insurance, which protects them, not you. It typically costs 0.3 to 1.5 percent of the loan amount annually, roughly $83 to $415 per month on a $332,500 loan. The part buyers forget: PMI is temporary. You can request removal once you reach 20 percent equity, and lenders must cancel it automatically at 22 percent. Treat it as the rent you pay for buying years earlier than a 20 percent down payment would have allowed, then get rid of it.

5. The Costs That Show Up After the Keys

Four categories catch new owners off guard. Maintenance runs 1 to 3 percent of home value per year as a planning figure, $290 to $875 monthly on our example home, and older homes trend high. HOA dues, where they apply, add $100 to $500 or more per month and belong in your affordability math before you offer, not after. Utilities on a whole house commonly run $200 to $400 monthly, more than most renters are used to. And the move itself, movers, furniture, window coverings, the first wave of small fixes, easily consumes $3,000 to $8,000 in the opening weeks.

6. Approval vs. Affordability: The Gap That Gets Buyers in Trouble

A lender's approval number measures their risk, not your life. It doesn't know about your retirement contributions, your travel habits, or the daycare bill arriving next fall. The comfortable number is usually below the approved number, sometimes well below, and deciding yours before you tour homes protects you from falling in love with the top of your approval.

Two levers move every figure in this article. Your credit score sets your rate, and your rate compounds across thirty years, so if you have 30 to 90 days before applying, our credit action plan is the highest-return prep work available. And pre-approval, covered in our financing and affordability hub, converts all of this from estimates into your actual numbers while signaling to sellers that your offer is real.

What to Have Saved Before You Buy

The full picture for a $350,000 home, assuming 5 percent down:

An illustration, not a quote: loan type, location, and lender requirements all move the total. The pattern holds at any price point, though. Whatever the home costs, the cash you need is meaningfully more than the down payment alone.

Common Questions About the Cash You Need

How much money do you need to buy a $350,000 house?

Plan on roughly $40,000 to $48,000 with 5 percent down: the down payment plus closing costs, prepaids, moving expenses, and a starter reserve. Zero-down VA or USDA loans can cut that substantially, though closing costs and reserves still apply.

Can you buy a house with less than $20,000?

Sometimes. A zero-down VA or USDA loan, seller-paid closing costs, and a down payment assistance program can combine to bring cash-to-close under $10,000 in the right situation. Each piece has eligibility rules, so the path runs through a lender conversation early.

Is it better to put 20 percent down?

It eliminates PMI and lowers the payment, but waiting years to save it has costs too: rising prices, rising rents, and rate risk. For many buyers, a smaller down payment now beats a perfect one later. Run both versions of the math with your own numbers.

From Your Number to a Plan

Knowing your target is the first step; turning it into a savings timeline, a loan strategy, and a search budget matched to your market is where it gets personal, and where the right people make the difference. A good lender turns these estimates into real quotes, and a good buyer's agent keeps your search inside the budget you actually chose rather than the one you were approved for. When you're ready for that second one, find your agent match with a single real conversation: one call, one vetted local agent who fits your situation, no forms and no spam from five competing agents.

_{This article is for educational purposes only and does not constitute financial or legal advice. Costs, rates, and guidelines vary by location, lender, and individual financial profile. Always consult a qualified mortgage professional for guidance specific to your situation.}