Here's Exactly How Much Cash You Need to Buy a House

The Down Payment: What the Rules Actually Require

FHA loans require 3.5% down if your credit score is 580 or higher, and 10% down if it falls between 500 and 579, according to HUD's Single Family Housing Policy Handbook 4000.1. VA and USDA loans let qualified buyers put down 0%, no down payment at all, per VA.gov. Conventional loans start as low as 3% down through first-time-buyer programs. On a $400,000 house, the FHA minimum is $14,000 down.

Most buyers aren't putting down the minimum anymore. NAR's 2025 Profile of Home Buyers and Sellers found the median down payment across all buyers hit 19%, with first-time buyers landing at a 10% median and repeat buyers at 23%. That 10% first-time-buyer figure is the highest it's been since 1989. On that same $400,000 house, a 10% down payment is $40,000. A 23% down payment is $92,000, cash most people don't have sitting in a checking account, which is why proceeds from an existing home sale are such a common source for repeat buyers' down payments.

Closing Costs and Reserves: The Two Numbers That Catch Buyers Off Guard

Closing costs run 2% to 5% of your loan amount, according to Freddie Mac. On the FHA minimum path, 3.5% down on a $400,000 house, the loan is $386,000, and 2% to 5% of that is $7,720 to $19,300 in lender fees, title insurance, appraisal costs, and prepaid escrow for taxes and insurance. Add that to the $14,000 down payment and total upfront cash for the FHA path runs $21,720 to $33,300, before a single reserve dollar.

On the 10%-down path, the numbers move. A 10% down payment on that same $400,000 house is $40,000, leaving a $360,000 loan. Closing costs on that loan run $7,200 to $18,000. Combined with the down payment, total upfront cash lands between $47,200 and $58,000.

Either path, reserves come next. Most conventional lenders want 2 to 6 months of your full mortgage payment, principal, interest, taxes, and insurance combined, sitting untouched in your account after closing. It's money you don't spend, but you have to prove it's there before the lender signs off.

If You're Selling to Buy: Compare Your Two Offers Before Planning Your Next Purchase

If you're searching how much money you need to buy a house, you may be planning to sell your current house first. That sale funds your down payment, and until a traditional listing actually closes, your proceeds can remain uncertain for 30 to 45 days or more, sometimes longer if the buyer's financing falls through or an appraisal comes in low.

With Cash Flow Deals, you choose between the Fast Cash Offer, where we buy your house as-is and close, and the Premium Cash Offer, where a pre-approved FHA or conventional buyer we already have, ready to go, pays more and buys directly from you. Cash Flow Deals is a Florida real estate investor; Silver Door Realty is our licensed Florida brokerage partner.

The process runs in three steps. Step 1: we review your house and show you both offers so you can choose. The number is agreed before any work starts, and it changes only if you agree. The one exception: if something structural surfaces that was not visible or disclosed before we signed — foundation issues, hidden moisture, old wiring, cast-iron drain failure — we re-cost it and bring the number back to you. You decide. You can walk away. We disclose what we know at offer time so this almost never happens. Step 2: with the Fast Cash Offer, you sell as-is without making repairs. With the Premium Cash Offer, you give us permission to bring a buyer in our place, and that buyer signs a new contract directly with you. Your home may be listed through Silver Door Realty, with a licensed agent and scheduled showings. We cover repair costs, and we figure out a way, so nothing comes out of your pocket. Only what the buyer's lender requires gets fixed, with those costs settled from the sale proceeds out of our share. Step 3: you close on a date you help pick, with the existing close-in-45-days-or-less option, and use your proceeds toward the down payment and closing costs on your next house. On Premium, title transfers directly from you to your buyer, their lender funds the purchase, and we are paid as a separate line item on the closing statement. If the buyer's loan falls through, that is our problem, not yours, and you can still take the Fast Cash Offer at its own number or continue with the Premium Cash Offer if financing is resolved.

NAR's 2025 Profile of Home Buyers and Sellers puts the repeat-buyer median down payment at 23% of the purchase price, or $92,000 on a $400,000 house. Comparing your sale proceeds early helps you plan for that purchase instead of waiting until a 30-to-45-day listing runs its course to learn what's left.