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

Crystal 

Walker

Content Writer

Updated 10/27/26

On a $350,000 home, most buyers should plan on roughly $40,000 to $47,000 in cash by closing day. That's the down payment, closing costs, prepaid items, moving expenses, and a small cushion for the first few months. Your number could land higher or lower depending on your loan, your state, and the home itself.

The down payment gets all the attention, but it's usually the smallest surprise. The bigger shock tends to come from everything stacked around it. This guide walks through where the rest of the money goes so you can plan around a real number.

If you'd rather run your own figures, the Financing & Affordability hub has a calculator and a pre-approval checklist.

How Much Do You Actually Need for a Down Payment?

It depends on the loan, and it's lower than most people assume.

A conventional loan can start at 3% to 5% down. On a $350,000 home, that's $10,500 to $17,500. Putting down 20% ($70,000) avoids private mortgage insurance, but plenty of buyers skip that target on purpose and keep more cash in the bank.

FHA loans start at 3.5% down, which is $12,250 on the same home. They're a common route for buyers with thinner savings or a credit score that's still recovering. VA and USDA loans can go as low as zero down if you qualify.

Down payment assistance is worth a look before you set your savings goal, since it can change the target. This rundown of first-time homebuyer programs covers what's out there. And if you're still building the fund, these down payment saving strategies are a good place to start.

A lot of buyers assume less than 20% down means they made a mistake. Not necessarily. You'll pay mortgage insurance, but you may also get into a home years sooner and keep an emergency fund intact. Whether that trade works depends on your market and your numbers.

What Are Closing Costs, and How Much Should You Plan For?

Closing costs run about 2% to 5% of the purchase price. On a $350,000 home, that's $7,000 to $17,500, and it's the line item buyers most often forget to save for.

They cover the lender's fees, the appraisal, title search and title insurance, the inspection, and in some states an attorney. Your lender will also collect a few months of property taxes and homeowners insurance up front to start your escrow account.

Within three business days of applying, your lender has to send you a Loan Estimate. Read it closely. It shows your actual closing costs instead of a national average. This beginner's guide to closing costs breaks down each fee.

In some markets, you can ask the seller to cover part of these costs. Sometimes that works and sometimes it sinks the offer, so it's a conversation to have with your agent before you write the contract.

What Will Your Monthly Payment Look Like?

Your mortgage payment has four parts: principal, interest, property taxes, and homeowners insurance. Lenders call it PITI.

Take that same $350,000 home with 5% down, a 30-year fixed loan, and a rate around 6.5% to 7%. Principal and interest alone come to roughly $2,100 to $2,250 a month. Add $300 to $700 for property taxes and $100 to $200 for insurance, and you're at $2,500 to $3,150 a month. Taxes swing the most, because they depend heavily on where you buy.

If you put down less than 20% on a conventional loan, add private mortgage insurance (PMI). It usually costs 0.3% to 1.5% of the loan per year, so around $83 to $415 a month on this example. It doesn't last forever. You can ask to drop it once you reach 20% equity, and lenders generally have to remove it automatically at 22%.

What Costs Show Up After You Move In?

This is where first-year owners get caught. Rent never asked you to replace a water heater.

• Repairs and upkeep: a common guideline is 1% to 3% of the home's value each year, so $3,500 to $10,500 on this home. Older houses sit at the high end.
• HOA dues: anywhere from $100 to $500 or more a month, and they count toward what you can afford.
• Utilities: often $200 to $400 a month, and bigger or older homes cost more to heat and cool.
• Moving and setup: movers, a few pieces of furniture, curtains, a lawn mower. It adds up to $3,000 to $8,000 faster than most people expect.

What Should You Have Saved Before You Buy?

Here's how the numbers stack up on a $350,000 home. Treat it as a planning range, not a quote.

A buyer who qualifies for assistance or negotiates seller credits could land well under that. A buyer in a high-tax county or buying an older home could land over it.

How Do You Know What You Can Afford?

Qualifying for a loan and being comfortable with the payment are two separate questions. A lender checks whether you're a safe bet to repay. It doesn't know about your daycare bill, your commute, or how much breathing room you want each month. This piece on why lender approval doesn't mean affordability goes deeper on the gap.

Your credit score also feeds into every number above, since it sets your rate. If you have a few months before you apply, this 30 to 90 day credit plan is worth a look. 

Common Questions

Do I Need 20% Down to Buy a House?

No. Conventional loans start at 3% to 5% down, FHA at 3.5%, and VA and USDA can be zero down for eligible buyers. Less than 20% down on a conventional loan means paying mortgage insurance.

How Much Are Closing Costs?

Typically 2% to 5% of the purchase price, which is $7,000 to $17,500 on a $350,000 home.

What Does PITI Stand For?

Principal, interest, taxes, and insurance. Those four pieces make up a standard monthly mortgage payment.

How Much Should I Budget for Maintenance?

A common rule of thumb is 1% to 3% of the home's value per year.

Where to Go From Here

Once you have a rough number, the next question is how to get there and what to do in the meantime. If you want the full sequence from financial prep through closing day, the first-time buyer guides and checklists lay it out step by step.

When you're ready to talk to someone who knows your market, PrimeStreet can match you with an agent based on your timeline, budget, and the kind of home you want.

_{This article is for educational purposes only and isn't financial or legal advice. Costs and rules vary by lender, location, and personal situation, so talk with a mortgage professional about your own numbers.}