Most first-time buyers budget for the down payment and forget about closing costs, which typically add another 2–5% of the purchase price. This calculator shows you the complete picture: every upfront dollar you need, your total monthly payment, and the true cost of homeownership in your first year.

Home & Loan Details

Upfront Costs (Cash Needed at Closing)

Down Payment
Origination Fee
~0.75% of loan
Appraisal
flat estimate
Title Insurance
~0.7% of price
Home Inspection
flat estimate
Prepaid Interest (15 days)
at closing
Escrow Setup (3 mo tax + ins)
prepaid reserves
Transfer / Recording Tax
state-based estimate
Moving Costs
estimate
Initial Repair Reserve (1%)
of home price
Total Cash Needed
recommended at closing
Closing Costs Only (excl. down)
non-down-payment costs

Monthly Payment (PITI)

Principal & Interest
per month
Property Tax (escrow)
per month
Insurance (escrow)
per month
PMI
if <20% down
HOA
per month
Total Monthly PITI
per month

First Year True Cost

Closing Costs + Down Payment
year one upfront
12 Months of Payments
year one ongoing
Total First Year Cost
all-in year one

What First-Time Buyers Often Miss

The down payment is just one piece of the cash required to close on a home. Here's what else you need to budget for:

PMI and How to Avoid It

If your down payment is less than 20%, you'll pay PMI — typically 0.5–1.5% of the loan annually. On a $270,000 loan at 0.75%, that's $2,025/year or about $169/month. PMI can be removed once you reach 20% equity. Strategies to avoid PMI include saving a 20% down payment, using a piggyback loan (80/10/10 structure), or taking an FHA loan (which has its own MIP fees).

First-Time Buyer Programs

Many states and local governments offer down payment assistance grants, low-interest second mortgages, and reduced PMI programs for first-time buyers. The FHA loan program allows as little as 3.5% down. USDA loans allow 0% down in eligible rural areas. VA loans offer 0% down for qualifying veterans. Check your state's housing finance agency for local programs that could significantly reduce your cash needed at closing.

Frequently Asked Questions

How much money do I need to buy a house for the first time?

Plan for your down payment (3–20%) plus 2–5% of the purchase price for closing costs, plus moving costs, plus a repair/emergency reserve. For a $300,000 home with 10% down, you should have roughly $45,000–$55,000 available — not just the $30,000 down payment.

What are closing costs for a first-time buyer?

Closing costs typically run 2–5% of the loan amount and include lender fees (origination, underwriting), third-party fees (appraisal, title insurance, attorney), prepaid items (insurance, taxes into escrow), and government fees (recording, transfer tax). Some costs are negotiable or seller-paid in a buyer's market.

Can the seller pay my closing costs?

Yes — seller concessions are common, especially in slower markets. Sellers can typically contribute 3–6% of the purchase price toward buyer closing costs depending on loan type. This is often negotiated as part of the purchase offer. In competitive markets, asking for seller concessions may weaken your offer.

What credit score do I need to buy a house?

Conventional loans typically require a minimum 620 credit score. FHA loans accept scores as low as 580 (with 3.5% down) or 500 (with 10% down). Scores of 740+ generally qualify for the best interest rates, which can save tens of thousands over the life of a 30-year loan.

How long does the homebuying process take?

From accepted offer to closing, the typical timeline is 30–60 days. Steps include mortgage application, appraisal, title search, inspection, underwriting, and closing. Getting pre-approved before shopping can speed up the process significantly.

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