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.
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