How Much to Save for an FHA Home Loan Down Payment
May 12, 2025
How do people typically budget and save for this? Your financial needs and goals will play a big role in how much you decide to set aside for your new home, but here are some options to think about, below.
Saving for an FHA Home Loan Down Payment
To save the minimum FHA down payment in about one year, plan monthly contributions to a savings fund:
- The amount depends on the target home price and your minimum percentage (3.5% or 10%).
- Calculate the monthly savings for 12 months.
- Be sure to calculate how much you can save after lowering outgoing debt as part of your credit improvement plan. Re-calculate your savings plan about six months into the process to see if you can afford to set aside more.
- A $200,000 home needs a $7,000 down payment. Save approximately $583.33 monthly for 12 months ($7,000 / 12).
- A $300,000 home needs a $10,500 down payment. Save approximately $875.00 monthly for 12 months ($10,500 / 12).
- A $400,000 home needs a $14,000 down payment. Save approximately $1,166.67 monthly for 12 months ($14,000 / 12).
- A $200,000 home needs a $20,000 down payment. Save approximately $1,666.67 monthly for 12 months ($20,000 / 12).
- A $300,000 home needs a $30,000 down payment. Save approximately $2,500.00 monthly for 12 months ($30,000 / 12).
- A $400,000 home needs a $40,000 down payment. Save approximately $3,333.33 monthly for 12 months ($40,000 / 12).
These figures cover only the down payment. Funds for closing costs and reserves are also needed, so don’t forget to run those numbers, too.
FHA Loan Articles
August 19, 2026Homebuyers who have enough cash for a down payment still need to consider their full financial picture before choosing between a conventional mortgage and an FHA loan. Having cash on hand changes the math for both options, but savings alone won't make a conventional loan the automatic winner. Credit scores, current debt, and the type of property you want to buy all determine which loan will cost less over time.
August 11, 2026Homeowners with FHA adjustable-rate loans need to track their loans more closely. That is because FHA ARM loans start with introductory interest rates that eventually expire and are subject to change afterwards based on market rates. When interest rates rise, monthly housing payments climb on ARM loans, pushing many homeowners to consider refinancing into a fixed-rate mortgage.
August 10, 2026If you want to buy a home with an FHA mortgage, you must set up an escrow account to cover property taxes, homeowner insurance, and upfront closing expenses. While the FHA loan program has rules for funding these accounts, buyers often do not realize those rules can include approved and unallowed sources for escrow funds. What do you need to know before you set up and fund your escrow account for an FHA mortgage?
August 3, 2026Buying a home in a high-cost area requires understanding how FHA loan limits shape your financing options. Does the house for sale have a price above the local FHA loan limit? You may need to explore your jumbo loan options. There are conventional jumbo loans and FHA versions. Which is right for you? Much depends on your financial needs, plans, and goals for the loan.
July 30, 2026There is a common misconception about FHA loans that only a first-time home buyer can use the program. This is not true; repeat buyers can qualify for an FHA loan, but why does this misconception exist? Partially because state and local programs have first-time buyer requirements for down payment and/or closing cost assistance programs. So while you do not need to be a first-time buyer to get an FHA loan, you may need to meet that definition to qualify for down payment help.
