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How Much Do You *Really* Need to Buy a Home?

How Much Do You Really Need to Buy a Home?

Up-Front + At-Closing Calculator & County Tables (2025)

We show how a buyer can qualify and close with much less than 20% down — often with the seller covering a large portion of closing costs, and in some cases leaving the buyer with less than 1% of purchase price cash at closing.

What is EMD (Earnest Money Deposit)?

EMD is a good-faith deposit the buyer places with the title company or escrow agent when the contract is signed. It shows the seller you are serious and is typically applied to closing costs or down payment at closing if the deal completes. Common practice: 1% of purchase price or a minimum of $1,000 (varies by market and contract). If contingencies are not met, the EMD is usually refundable per the contract.

Retainer notice: LPS Retainer Fees are non-refundable and are due up-front when you engage LPS for services. Retainer selection is included in the up-front totals shown after you calculate. Retainer terms (credit or application toward services) will be included in your written engagement agreement.
Max Home Price: $0
Down Payment: $0
Seller Concessions: $0
Closing Costs (est.): $0
CASH AT CLOSING: $0
Inspection: $450
Appraisal: $550
EMD (earnest money deposit): $0
LPS Retainer (selected): $1,500
UP-FRONT CASH: $0
TOTAL CASH TO OWN: $0

Pro Tip:

Note: The LPS Retainer is included in the up-front totals. Retainer options:

  • Basic — $1,500 (non-refundable): Market analysis, up to 8 showings, standard reporting.
  • Full Concierge — $2,500 (non-refundable): Unlimited showings, private tours, negotiation support, due-diligence coordination.

Disclaimer: These are estimates for planning only. Interest rate assumed 6.5%. EMD commonly ~1% of price (minimum $1,000) — markets vary. Seller concessions are applied per lender rules. Consult a lender and LPS for final terms and exact figures.

Home Buying FAQ: Everything You Need to Know

Click any question to expand. All answers based on 2025 Broward County, FL rules.

What is PITI and why does it matter? +

PITI = Principal + Interest + Taxes + Insurance (plus MIP for FHA). It’s your real monthly housing cost — not just the mortgage.

  • Principal + Interest: Loan repayment
  • Taxes: ~1.25% of home value in Broward
  • Insurance: $100–$200/mo
  • MIP (FHA only): 0.55% annual

Example: $676K home → ~$4,500 PITI = same as renting, but you build equity.

How much do I really need to save to buy a home? +

Less than you think. With FHA + max seller concessions:

Rent BudgetHome PriceCash at ClosingUp-FrontTotal
$3,500$575K$4,100$4,100$8,200
$4,500$676K$4,800$4,800$9,600

VA buyers: $0 down + ~$4K total cash.

Can the realtor give me money toward closing? +

No — it’s illegal. Realtors are “interested parties” under HUD rules. Any contribution counts toward the seller’s concession limit (6% FHA, 5% conventional, 4% VA). Realtor max = $0 extra.

What are “seller concessions” and how much can I get? +

Seller concessions = money the seller pays toward your costs (closing, prepaids, rate buydown).

  • FHA: Up to 6% of price ($40,560 on $676K)
  • Conventional: Up to 5% with 5% down
  • VA: Up to 4% + funding fee

Negotiate in the contract — it’s free money!

What are up-front costs before closing? +

Paid before closing — non-refundable unless deal fails:

  • Home Inspection: $450
  • Appraisal: $550
  • Earnest Money Deposit (EMD): 1% of price (~$6,760 on $676K) — refundable if contingencies fail

Total Up-Front: ~$1,700–$7,500

What’s the FHA loan limit in Broward County? +

$654,350 loan → $676,000 purchase price (with 3.5% down).

Higher budgets? Use conventional (up to $806K loan) or VA (no limit).

Can I use gift money or down payment assistance (DPA)? +

Yes!

  • Gift from family/employer: 100% of down — needs gift letter
  • Florida HFA DPA: Up to 5% of price (forgivable)
  • Local programs: Broward County offers grants for first-time buyers

Stack with seller concessions → $0 personal cash down.

How much income do I need? +

Lenders use 45% DTI (debt-to-income). No other debt:

  • $4,500 PITI → $120,000/year ($10K/month)
  • $5,500 PITI → $147,000/year

Have car/student loans? Add ~$300–$500 per $10K debt.

Can I buy if I have bad credit? +

FHA is most forgiving:

  • 580+ score → 3.5% down
  • 500–579 → 10% down

Conventional needs 620+. VA has no minimum (lender overlay ~620).

What if I want a home over $676K? +

Use these options:

  • Conventional: Up to $806K loan → $850K home
  • VA: No limit → $1.4M+ possible
  • Jumbo: 10–20% down
  • Seller Carryback: Finance the gap with seller
Is the earnest money deposit refundable? +

Yes — if contingencies fail:

  • Failed inspection
  • Appraisal too low
  • Can’t get financing

Put contingencies in the contract!

Do I need reserves (savings after closing)? +

FHA: 1–2 months PITI in bank
Conventional: 0–6 months (depends on credit)
VA: Usually none

2025 Broward County estimates. Always verify with a licensed lender. Rules subject to change.

Find Out What You Can Really Buy — Right Now

Fill out this quick form with your income and debt info. In under 2 minutes, you’ll know:

  • Exact home price you qualify for
  • If you’re eligible for Down Payment Assistance
  • Total cash needed (with seller help)
See What I Qualify For