How much cash do you need to buy a house?
You need a down payment, closing costs, and a cushion of reserves. Here is the real range, and the levers, including a rebate, that lower the cash you bring to closing.
The short answer
To buy a house you generally need three things in cash: your down payment, your closing costs, and a cushion of reserves. On a $400,000 home with 5% down, that adds up to roughly $47,000 to $55,000 all in. But the down payment is far more flexible than most people think, so the real number can be much lower.
The down payment
There is no universal 20% rule. Conventional loans can go as low as 3% down, FHA loans start at 3.5%, and VA and USDA loans can require nothing down. Putting 20% down lets you skip private mortgage insurance, but plenty of buyers put down far less. Across all buyers the median is around 15%; first-time buyers typically put down closer to 8% to 10%.
Closing costs
On top of the down payment, budget 2% to 5% of the price for closing costs: lender fees, appraisal, title insurance, escrow, and prepaid taxes and insurance. For the full breakdown, see our guide to buyer closing costs.
Reserves
Lenders often like to see a few months of mortgage payments left in the bank after closing, and it is smart to have them regardless. Plan for three to six months of housing costs as a cushion.
How to need less cash
Several levers lower the cash you bring to the table: choose a low-down-payment loan, ask the seller for a closing-cost concession, look into down-payment-assistance programs, and, in states where it is allowed, take a buyer rebate that can be applied toward your closing costs. Each one shrinks the check you write at closing.
See how much a rebate is worth in your state →
Frequently asked questions
How much cash do you need to buy a house?
Generally your down payment plus closing costs of 2% to 5%, plus a few months of reserves. On a $400,000 home with 5% down that is roughly $47,000 to $55,000, though low-down-payment loans reduce it.
What is the minimum down payment on a house?
Conventional loans can go as low as 3%, FHA is 3.5%, and VA and USDA loans can require nothing down. Putting 20% down lets you avoid private mortgage insurance.
How can I reduce the cash I need at closing?
Use a low-down-payment loan, ask the seller for a closing-cost concession, look into down-payment assistance, and, where allowed, take a buyer rebate that can be applied toward closing costs.
← All research & guidesFigures are typical 2026 ranges and vary by loan type, lender, and location. This is general information, not financial advice; confirm your numbers with your lender.