How Much Money Do I Need to Buy a Home?

The amount of money you need to buy a home depends on several factors: the purchase price, loan type, and closing costs. Traditionally, buyers needed a 20% down payment, but today’s market offers more flexible options. Some conventional loans allow as little as 3% down, while FHA loans can require as little as 3.5%. Veterans and eligible service members may even qualify for zero-down VA loans.

Beyond the down payment, buyers should also budget for closing costs — typically 2–5% of the purchase price — which include lender fees, title insurance, inspections, and property taxes. I also recommend setting aside a small reserve for moving expenses or unexpected repairs. In my experience, being financially prepared — not just for the purchase but for the transition into homeownership — is key to a smooth and stress-free experience.