💰 How Much Do I Need for a Down Payment & Closing Costs?

Cassie Callahan
12 minutes ago
3 min read

One of the most common questions I get from buyers—especially first-timers and military families relocating to Fort Liberty (formerly Fort Bragg)—is: “How much money do I actually need to buy a house?”

Let’s break it down clearly and realistically, so you know what to expect and how to plan.

🏡 1. Understanding the Down Payment

Your down payment is the portion of the home’s price that you pay upfront at closing. The rest is covered by your mortgage loan.

How much you’ll need depends on the loan program you use:

Loan Type	Minimum Down Payment	Who It’s For
VA Loan	0%	Active duty, veterans, and eligible military spouses
USDA Loan	0%	Rural and some suburban buyers (yes, parts of Hoke, Harnett, and Sampson Counties qualify!)
FHA Loan	3.5%	First-time buyers and those with moderate credit
Conventional Loan	3–5%+	Buyers with good credit and solid income history

💡 Example: If you’re buying a $300,000 home with a 3.5% down payment, you’d need $10,500 for the down payment.

🏁 2. Don’t Forget About Closing Costs

Closing costs are the fees and expenses that come with finalizing your home purchase. These typically range from 2%–4% of the purchase price, depending on location, loan type, and whether the seller offers any concessions.

Common closing costs include:

Lender fees
Title insurance
Appraisal and inspection fees
Attorney fees (North Carolina requires a closing attorney)
Taxes and prepaid items (like homeowners insurance and property taxes)

💡 Example: On that same $300,000 home, expect $6,000–$12,000 in closing costs.

🪙 3. How Much Cash You’ll Actually Need

If you’re using a VA or USDA loan, your upfront costs can be minimal—especially if:

The seller contributes toward closing costs
You roll the VA funding fee into your loan
You receive down payment assistance or lender credits

For FHA or Conventional loans, most buyers in the Fort Liberty area need roughly $8,000–$15,000 total (down payment + closing costs), depending on the price point.

⚡ Cassie’s Tip: Fast-Track Your Loan Approval

Most loans take 30–45 days to close—but I partner with a preferred lender who can close in as little as 15 days. This speed can make your offer stand out in competitive markets and help military families transition quickly without extra stress.

If you’d like a list of trusted local lenders who can explain your exact numbers and options, reach out and I’ll connect you directly.

🧠 Frequently Asked Questions

1. Can I use gift funds for my down payment? Yes! Most loan programs allow all or part of your down payment to come from a family gift—just make sure it’s properly documented with your lender.

2. Can sellers pay my closing costs? Often, yes. It depends on your loan type and negotiation strategy. In today’s market, we can often get some or all of your closing costs covered.

3. What about down payment assistance programs? North Carolina offers several programs for first-time buyers and qualifying military families. I can connect you with lenders who specialize in these.

4. Do I have to pay my agent to buy a home? Nope! As a buyer, my commission is typically covered by the seller—so you get professional guidance at no out-of-pocket cost.

5. When should I get pre-approved? Before you start touring homes. Pre-approval helps you understand your budget and makes your offer stronger when you find “the one.”