cash-to-closedown-paymentpreparationfirst-time-buyer
How Much Cash Do You Need to Close?
January 5, 2026How Much Cash Do You Need to Close?
Your "cash to close" is the total amount you need to bring to the closing table.
Cash to Close Formula
Cash to Close = Down Payment + Closing Costs - Credits
Breaking It Down
Down Payment
| Loan Type | Minimum Down |
|---|---|
| Conventional | 3% - 20% |
| FHA | 3.5% |
| VA | 0% |
| USDA | 0% |
Credits That Reduce Cash Needed
- Seller Concessions: Credits from seller
- Lender Credits: Trade higher rate for closing help
- Earnest Money: Already deposited, applied at closing
Example Calculation
For a $500,000 home with 20% down:
- Down Payment: $100,000
- Closing Costs (~3%): $12,000
- Less Seller Credit: -$5,000
- Cash to Close: $107,000
Calculate Yours
Use our Cash to Close Calculator for a personalized estimate.
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