While the "20% down" rule is the gold standard for avoiding , most first-time buyers pay much less. FHA Loans: Require as little as 3.5% . Conventional Loans: Some programs allow for 3% down. VA or USDA Loans: If you qualify, these can be 0% down.
Example: On a $400,000 home, a 3.5% down payment is . 2. Closing Costs (2% to 5%) how much money should you save to buy a house
Your credit score is just as important as your savings. A higher score lowers your monthly interest rate, which can save you more money over time than a slightly larger down payment would. While the "20% down" rule is the gold
Example: On that same $400,000 home, expect to pay in closing costs. 3. The "Day One" Reserve VA or USDA Loans: If you qualify, these can be 0% down
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Example: Aim for at least tucked away for emergencies. The Realistic Total