How Much Cash Do You Need to Buy a Home in 2026?

Most buyers need roughly 5%-25% of the purchase price in cash: a 3%-20% down payment plus 2%-5% in closing costs, before inspections, moving, and emergency savings. On a $350,000 home, that is about 17,500-87,500, and your exact amount depends on your mortgage program, state, and county.

How Much Money Do You Need Upfront to Buy a Home in 2026?

Homebuying expense ($350,000 home)	Estimated amount
3% down payment	$10,500
5% down payment	$17,500
10% down payment	$35,000
20% down payment	$70,000
Closing costs (2%-5%)	7,000-17,500

With 5% down, expect to bring about 24,500-35,000 to closing, before inspections, appraisals, and moving costs.

What Is Included in the Cash You Need to Buy a Home?

Cash needed = down payment + closing costs + prepaid expenses + initial escrow deposits + inspection and moving costs − credits.

Prepaid expenses are costs paid in advance, such as a first-year homeowners insurance premium and prepaid interest. Initial escrow deposits are a cushion your lender holds to pay future property tax and insurance bills. Your Loan Estimate and Closing Disclosure itemize both. Seller concessions and lender credits reduce what you pay at closing. Inspections and appraisals are often paid before closing, so do not count them twice. Keep emergency savings separate.

How Do Upfront Costs Differ in Texas, Florida, Georgia, and New York?

State	Transaction taxes	Typical buyer cost on a $350,000 home, 5% down
Texas	No general statewide transfer tax; property taxes vary by county	No state transfer tax; escrow depends on local taxes
Florida	Deed stamps $0.70 per $100 (seller customarily); note stamps $0.35 per $100 of loan plus 2-mill intangible tax (buyer customarily)	About $1,829
Georgia	Transfer tax $1 per $1,000 (seller customarily); intangible recording tax $1.50 per $500 of loan, capped at $25,000 (buyer customarily)	About $998
New York	1% statewide mansion tax at $1 million or more (buyer); New York City adds 0.25%-2.9% from $2 million (buyer); mortgage recording tax (buyer; rate varies by county); base transfer tax $2 per $500 (seller)	Mansion tax does not apply under $1 million

Who pays is negotiable. Texas and Florida buyers should also price homeowners insurance carefully in storm-, hail-, and flood-prone areas. New York buyers should add title insurance and attorney fees. Georgia buyers should expect an attorney-led closing.

How Much House Can You Afford Making $70,000 a Year?

As an illustration, a buyer earning $70,000 with no other debt might afford roughly 180,000-255,000, assuming a 7.24% 30-year rate (Freddie Mac weekly average, October 29, 2026; your rate may differ), 5% down, and $450 monthly for taxes and insurance. This is an estimate, not an approval.

Lenders often compare housing costs to gross monthly income of $5,833: 28% is $1,633 and 36% is $2,100. Debts, credit, and program rules change the result. Qualifying for a loan is separate from having the cash to close.

How Can You Reduce the Cash You Need?

Down payment assistance has income, property, and occupancy limits. Seller concessions have program-specific caps. Lender credits may raise your interest rate. Conventional programs such as Fannie Mae HomeReady and Freddie Mac Home Possible allow 3% down for primary-residence buyers with income at or below 80% of area median income.

How Can You Check Your Mortgage Readiness?

Estimate your borrowing power with our 90-second pre-qualification tool [INSERT CTA LINK], which uses a soft credit inquiry [VERIFY BOTH CLAIMS]. Pre-qualification is not a loan approval. NMLS #1743790.