How Much Money Do You Need to Buy a House?

The cash you need to buy a home in San Diego comes down to three main costs: your down payment, closing costs, and cash reserves. Here's how each one works.

Down Payment

Down payments typically range from as little as 3 to 5 percent for conventional loans, 3.5 percent for FHA, and 0 percent for VA loans if you qualify. A larger down payment lowers your monthly payment and can help you avoid mortgage insurance.

Closing Costs

Closing costs for buyers usually run about 2 to 5 percent of the purchase price and cover items like loan fees, escrow, title insurance, and prepaid taxes and insurance.

Cash Reserves

Lenders often like to see a few months of mortgage payments in savings after closing. Reserves also give you a cushion for moving costs and any early repairs.

Down Payment Assistance

California and San Diego County offer down payment assistance programs for eligible buyers, which can significantly reduce the cash you need up front.

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Every situation is different. Reach out and I'll connect you with trusted lenders who can give you an exact number based on your goals and the loan you choose.