The down payment is only part of what you need at closing. This calculator adds closing costs and a post-move reserve to build the real target, then solves it two ways: how long your current saving rate takes, and what you would need to save monthly to hit a deadline.
| Down payment (20.0%) | $80,000 |
|---|---|
| Closing costs (~3% of loan) | $9,600 |
| Cash reserve (3 months) | $8,400 |
| Total cash needed | $98,000 |
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Less than most people assume. Conventional loans go to 3% down, FHA to 3.5%, and VA and USDA allow 0% for those who qualify. Twenty percent is not a requirement — it is simply the threshold that avoids private mortgage insurance.
The down payment plus closing costs of roughly 2%–5% of the loan, plus a cash reserve for the months after you move in. Budgeting only the down payment is the most common way buyers arrive at closing short.
A high-yield savings account or short-term Treasury product. Money you need within two or three years does not belong in the stock market — a downturn timed against your closing date can cost you the house entirely.
It depends on how fast prices and rents are moving against you. Waiting to reach 20% avoids PMI, but PMI cancels at 78%–80% loan-to-value anyway, while years of rent do not come back. Run both paths before assuming 20% is worth the wait.
Most states and many cities run down-payment-assistance programs offering grants or forgivable second loans, often targeted at first-time buyers and specific income bands. Gift funds from family are also permitted on most loan types with proper documentation.
Sources: CFPB — how much down payment do you need?; HUD — state and local down payment assistance programs; Future value of an annuity — standard compounding formula.
Estimates for educational purposes only — not a loan offer, financial advice, or a commitment to lend. Actual rates, payments, and terms vary by lender and creditworthiness.