Determine exactly how much cash you need to bring to the closing table, and calculate how many months it will take to reach your savings goal.
The biggest myth in real estate is that you must have a 20% down payment to buy a house. In 2026, the National Association of Realtors reports that the median down payment for first-time buyers is actually around 8%. Our calculator helps you map out your savings timeline whether you are aiming for 3%, 10%, or the full 20%.
Depending on your credit profile and military status, you might qualify for programs requiring drastically less cash upfront:
If you put down less than 20% on a conventional loan, your lender will charge you Private Mortgage Insurance (PMI). This fee protects the lender in case you default on the loan. It typically costs between 0.3% and 1.5% of the original loan amount per year.
However, many financial advisors argue that it is better to pay PMI and buy a home sooner with a 5% down payment, rather than waiting 5 extra years to save 20% while home prices and rents continue to rise. Use our Mortgage Payment Calculator to see exactly how much PMI will cost you each month.
Your down payment is not the only cash you need on closing day. You must also pay "Closing Costs"-the massive bundle of fees for appraisals, taxes, title insurance, and lender underwriting.
Closing costs typically run between 2% to 5% of the home's purchase price. This means if you are buying a $400,000 home with a 5% down payment ($20,000), you realistically need to have $32,000 to $40,000 in your bank account to actually close the deal. Check our Closing Costs Calculator for a state-specific breakdown.
Yes. Both FHA and Conventional loans allow you to use cash gifts from family members to cover 100% of your down payment. However, the giver must sign a formal "Gift Letter" assuring the lender that the money is not secretly a loan that needs to be paid back.
If you have a Conventional loan, your PMI will automatically fall off once your loan balance reaches 78% of the home's original purchase price. You can also request it be removed manually at 80%. (Note: FHA MIP works differently and often cannot be removed without refinancing).
See how long it will take to save for your dream home.
Still need to save:
$75,000
Remember closing costs (2-5% of home price) and emergency reserves, typically 3-6 months expenses.