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What is the minimum down payment and closing cost?

What is the minimum down payment and closing cost? Will my real estate agent tell me how much money I need for the house?

Asked by Brandon | Beaver, UT| 02-05-2024| 926 views|Buying|Updated 2 years ago

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Lance CliffordReal Estate Agent1 month ago
Novice4 Answers

Brandon, yes—your agent should help you understand the costs and plan for them. Your lender will confirm which loan programs you qualify for and provide the written financing estimates. The minimum down payment depends on the loan: - **Conventional:** Some programs allow as little as 3% down. - **FHA:** As little as 3.5% down for qualified buyers. - **VA or USDA:** No down payment may be required if you and the property qualify. Since you’re looking in Beaver, I’d ask about USDA eligibility. It depends on the property’s address, household income, and other requirements. Closing costs are separate from the down payment. A rough starting budget is **2%–5% of the purchase price**, although your actual costs can vary. On a $300,000 house, that’s roughly $6,000–$15,000 in addition to your down payment, before any credits or assistance. Ask your lender for an estimate of your **total cash needed to buy**, including lender and title fees, prepaid insurance, and tax escrows. Have your agent explain the earnest-money deposit and inspection expenses too, since some money is needed before closing. Your deposit is generally credited toward the purchase, so it shouldn’t be counted twice. Your agent can also help negotiate seller contributions toward allowable closing costs. Before making an offer, make sure you understand both the upfront cash requirement and the full monthly payment.

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Zoltan PeresztegiReal Estate Agent2 months ago

Brandon, your agent is not the person who tells you how much cash you need. Your lender is, and there is a specific federal form for it: the Loan Estimate, a standardized three page document your lender must deliver or mail within three business days of your application. That answers the second half of your question, and it is the more useful half. You trigger that three day clock the moment a lender has six pieces of information from you: your name, your income, your Social Security number, the property address, an estimated value of the property, and the loan amount you want. Hand a lender those six things and the Loan Estimate is no longer optional. Because the form is standardized, you can put two or three lenders' Loan Estimates side by side and compare line by line. Here is how to read one. Page 1 gives you loan terms, projected monthly payment, estimated closing costs and estimated cash to close. That last figure is the number you asked about. Page 2 itemizes everything. Section A is the lender's own origination charges. Section B is services you cannot shop for. Section C is services you can shop for, and your lender has to hand you a written list of providers for those. Sections E through G are government fees, prepaids and your escrow deposit. Page 3 is where most people stop reading and where the comparison actually happens: the "In 5 Years" totals, the APR, and the total interest percentage. Two loans with the same rate can land very differently there. Then there is fee tolerance, the consumer protection nobody mentions. Fees split into three buckets. Zero tolerance items, like the lender's origination charges and transfer taxes, cannot increase at all. A ten percent cumulative bucket covers recording fees and the shoppable services if you choose a provider from the lender's written list, and if that group comes in more than ten percent over the estimate, the lender owes you the difference. A third group has no limit, including prepaid interest, your homeowners insurance premium and escrow deposits, because those are genuinely outside the lender's control. At the end you get a Closing Disclosure at least three business days before you sign. Put it next to your original Loan Estimate and compare. That window exists so you have time to catch changes. The others here covered 3.5 percent FHA on the down payment. Two additions for you. Conventional goes to 3 percent down for a qualified first time buyer, and mortgage insurance on a conventional loan is cancellable while FHA mortgage insurance generally is not if you put down less than 10 percent. And Beaver is exactly the kind of small town where USDA's zero down loan often applies. Check your target address on USDA's eligibility map before you assume you need a down payment. On closing costs, buyers commonly land around 2 to 5 percent of the price, but do not budget off a rule of thumb when a lender is legally required to hand you real numbers. Utah helps here: it charges no state real estate transfer tax, a line item that costs real money in other states. What your agent contributes is local custom, meaning who traditionally pays what in your market, and negotiating a seller credit toward those costs. I am a real estate professional, not a lender, so trust the Loan Estimate for dollars. One 2026 note since you asked in early 2024: the CFPB amended the tolerance reset rules and opened a request for information on the TRID rule in July 2026, so ask your loan officer for the current version. I am Zoltan Peresztegi and I work in Los Angeles and the South Bay of California, so I am not your Beaver County agent. Happy to connect you with a strong southern Utah agent if that helps. Zoltan

Cassidy McWherterReal Estate Agent4 months ago

The minimum down payment depends on the loan program you're using. Some buyers qualify for as little as 0% down, while others may need 3%, 3.5%, 5%, or more depending on the loan type and financial situation. Closing costs are separate from your down payment and typically include lender fees, title fees, prepaid taxes, homeowners insurance, and other transaction-related expenses. As a general rule, many buyers should budget approximately 2%–5% of the purchase price for closing costs, although that can vary significantly. One of the most common misconceptions I hear is that buyers need 20% down. In reality, many first-time buyers purchase homes with far less. If you'd like, I can help you estimate what your actual cash-to-close would look like based on the price range you're considering. Sometimes the numbers are much different than buyers expect—in a good way.

Keith Jean PierreReal Estate Agent5 months ago

Brandon, this is completely dependent on what you qualify for as it can range from 0% to 20% down minimum. I would highly suggest speaking with a mortgage professional to get an idea of what is expected. Good luck! Keith Jean-Pierre Managing Principal The Dapper Agents Operations In: NY, NJ, FL & CA

Jordan SmithReal Estate Agent7 months ago
Novice5 Answers

Here is a simple breakdown of the most common options: Conventional Loan As low as 3% down (first time buyer programs) More commonly 5% to 20% If under 20%, you will have PMI FHA Loan 3.5% down More flexible on credit Requires mortgage insurance VA Loan (if eligible) 0% down No monthly mortgage insurance Strong option for Hill AFB buyers USDA Loan (rural areas) 0% down Location and income restrictions apply Closing Costs (What to Expect) Typically: 2% to 5% of the purchase price On a $400,000 home: Roughly $8,000 to $20,000 This includes: Lender fees Title and escrow Prepaid taxes and insurance Appraisal and inspections 💡 Important: In many Utah deals, we negotiate seller concessions to cover part or even all of this. Will Your Agent Tell You How Much You Need? Short answer: Yes but with a team approach. Here is how it actually works: Your Lender Gives you exact numbers Breaks down monthly payment Calculates cash to close Your Agent (me, ideally 😉) Helps you strategize how to reduce that number Negotiates: Seller paid closing costs Price reductions Rate buydowns What You Should Expect as a Buyer Before you start shopping seriously, you should know: Estimated down payment Estimated closing costs Monthly payment range Cash to close (total out of pocket) Real Talk (This Is Where Most People Are Surprised) A lot of buyers think: “I need 20% down” That is not true anymore. Many buyers in Utah are getting in with: 3% to 5% down PLUS getting seller concessions to help with closing costs Simple Example $450,000 home with 3% down: Down payment: ~$13,500 Closing costs: ~$10,000 Seller concessions: -$10,000 👉 Total out of pocket: ~$13,500

Jordana Jared ProctorReal Estate Agent7 months ago
Semi-Pro46 Answers

It depends on the loan, but here’s the rough picture. Some programs go as low as 3% down (and VA/USDA can be 0% if you qualify). FHA is usually 3.5%. Conventional loans are often 3–5% minimum. Your agent can give a ballpark, but your lender is the one who’ll break it down clearly once you’re pre-approved.

Christina MotonReal Estate Agent1 year ago
Novice1 Answer

Your best bet will be to speak with a lender! They are the ones who are truly able to answer those questions! It can be tricky to navigate the home buying process. Make sure you have a great team who are there to educate you and have full transparancy through the transaction!

Jamie MerwinReal Estate Agent2 years ago
Rising Star20 Answers

You will want to speak to a mortgage specialist to see what you are pre-qualified for based on income, credit score & debt. You will then receive your answers. Best of luck!

Bruce AllenReal Estate Agent2 years ago
Novice1 Answer

FHA is 3.5% with approved credit, lower credit it can be 5%. Conventional is 5% and VA is 0%.

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