How Much Money Should I Save Before Buying a House? - Orchard

Before purchasing a house, experts generally recommend saving between . This target is designed to cover your down payment, closing costs, and a necessary safety buffer for immediate repairs and reserves. The Three Main Savings Buckets

: While 20% is the traditional "gold standard" to avoid Private Mortgage Insurance (PMI) , first-time buyers often put down as little as 3% on conventional loans or 3.5% with FHA loans .

: Lenders often require proof of "reserves"—cash available to cover mortgage payments in an emergency. This safety net also handles immediate post-move needs like repairs, furniture, or utility deposits. Strategic Savings Rules

: These upfront fees cover loan origination, appraisals, inspections, and title insurance. For a $400,000 home, expect to pay between $8,000 and $20,000 at closing.

Financial experts often point to these benchmarks to ensure you aren't "house poor" after the purchase:

Your total savings goal is typically split into three primary categories: