How much should I save for a house?

Plan to save 8-23% of the home price: 3-20% for down payment plus 2-5% for closing costs. For a $400,000 home, that's $32,000-$92,000 depending on your down payment choice.

How long does it take to save for a house?

At a 15% savings rate, it takes 3-7 years to save a 20% down payment plus closing costs for most homes. First-time buyers can reduce this to 1-3 years with 3-5% down programs.

How Much to Save for a House (2026): Down Payment & Closing Cost Guide

Calculate exactly how much you need to save for a house and how long it will take based on your income and target home price.

House Savings Calculator: Quick Reference

Home Price	3% Down	5% Down	10% Down	20% Down	+ Closing Costs
$250,000	$7,500	$12,500	$25,000	$50,000	+$7,500-$12,500
$300,000	$9,000	$15,000	$30,000	$60,000	+$9,000-$15,000
$350,000	$10,500	$17,500	$35,000	$70,000	+$10,500-$17,500
$400,000	$12,000	$20,000	$40,000	$80,000	+$12,000-$20,000
$450,000	$13,500	$22,500	$45,000	$90,000	+$13,500-$22,500
$500,000	$15,000	$25,000	$50,000	$100,000	+$15,000-$25,000
$600,000	$18,000	$30,000	$60,000	$120,000	+$18,000-$30,000
$750,000	$22,500	$37,500	$75,000	$150,000	+$22,500-$37,500

Total Savings Needed (Down Payment + Closing Costs)

For a $400,000 home:

Down Payment	Amount	Closing Costs (3%)	Total Needed
3% (FHA/Conv)	$12,000	$12,000	$24,000
5%	$20,000	$12,000	$32,000
10%	$40,000	$12,000	$52,000
20% (No PMI)	$80,000	$12,000	$92,000

Note: Closing costs can sometimes be negotiated with seller or rolled into loan

Down Payment Options Explained

Down Payment	Loan Type	PMI Required	Best For
0%	VA Loan	No	Veterans/active military
0%	USDA Loan	No (guarantee fee instead)	Rural areas
3%	Conventional	Yes (~0.5-1% annually)	First-time buyers, good credit
3.5%	FHA	Yes (MIP for life)	Lower credit scores
5%	Conventional	Yes (~0.3-0.8% annually)	Moderate savings
10%	Conventional	Yes (~0.2-0.5% annually)	Balanced approach
20%+	Any	No	Maximum equity, lowest payment

PMI Cost Impact

Private Mortgage Insurance adds to your monthly payment:

Home Price	Loan at 5% Down	Est. Monthly PMI	Annual Cost
$300,000	$285,000	$140-$240	$1,680-$2,880
$400,000	$380,000	$190-$320	$2,280-$3,840
$500,000	$475,000	$235-$400	$2,820-$4,800

PMI typically drops off when you reach 20% equity.

Closing Costs Breakdown

Cost	Typical Range	On $400K Home
Loan origination fee	0.5-1%	$2,000-$4,000
Appraisal	$300-$600	$450
Home inspection	$300-$500	$400
Title insurance	0.5-1%	$2,000-$4,000
Attorney fees	$500-$1,500	$1,000
Escrow/prepaids	2-3 months PITI	$3,000-$5,000
Recording fees	$100-$300	$200
Total	2-5%	$8,000-$20,000

How Long to Save: Timeline Calculator

Based on Monthly Savings

For a $400,000 home with 10% down ($52,000 total needed):

Monthly Savings	Time to Goal
$500	8.7 years
$750	5.8 years
$1,000	4.3 years
$1,500	2.9 years
$2,000	2.2 years
$2,500	1.7 years
$3,000	1.4 years

Based on Income (15% savings rate)

Household Income	Monthly Savings	Years to 20% on $400K
$50,000	$625	12.3 years
$75,000	$938	8.2 years
$100,000	$1,250	6.1 years
$125,000	$1,563	4.9 years
$150,000	$1,875	4.1 years
$175,000	$2,188	3.5 years
$200,000	$2,500	3.1 years

Savings Strategies to Buy Sooner

Option 1: Lower Down Payment

Strategy	Savings Needed	Tradeoff
3% down vs. 20%	$24K vs $92K	Pay PMI, higher monthly payment
5% down vs. 20%	$32K vs $92K	Pay PMI, higher monthly payment
10% down vs. 20%	$52K vs $92K	Pay PMI, higher monthly payment

Option 2: Down Payment Assistance Programs

Program Type	Benefit
State HFA programs	Grants or 0% loans, $5,000-$25,000
First-time homebuyer grants	$5,000-$15,000
Employer assistance	Some employers offer $5,000-$10,000
IRA withdrawal	Up to $10,000 penalty-free for first home

Option 3: Reduce Target Home Price

Original Target	Reduced Target	Savings at 10% Down
$400,000	$350,000	Save $5,000
$400,000	$325,000	Save $7,500
$400,000	$300,000	Save $10,000

Option 4: Gift Funds

Source	Considerations
Family gift	Document with gift letter; no repayment expected
Gift limit	No limit for down payment (may have gift tax implications for giver above $18K/year)

Where to Keep Your Down Payment Savings

Account Type	Best For	Interest Rate
High-yield savings	0-2 years away	4-5%
Money market	0-2 years away	4-5%
CDs (laddered)	1-3 years away	4-5%
I-Bonds	1-5 years away	Variable (inflation-protected)

Avoid keeping down payment savings in stocks if buying within 3 years—too much volatility risk.

Monthly Savings Plan by Home Price

To buy in 3 years with 10% down + closing costs:

Home Price	Total Needed	Monthly Savings
$250,000	$32,500	$903
$300,000	$39,000	$1,083
$350,000	$45,500	$1,264
$400,000	$52,000	$1,444
$450,000	$58,500	$1,625
$500,000	$65,000	$1,806

Hidden Costs to Budget For

Beyond down payment and closing costs:

Cost	Typical Amount	When Due
Moving expenses	$1,000-$5,000	At closing
Immediate repairs	$500-$5,000	First month
Furniture/appliances	$2,000-$10,000	First 6 months
Emergency fund (3-6 months)	$5,000-$15,000	Before buying
First property tax payment	3-6 months escrow	At closing

Conservative total to have saved: Down payment + Closing costs + $10,000 buffer = Peace of mind

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy