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
June 30, 2026FHA loans offer low down payment options and more forgiving credit requirements for borrowers who may not qualify for a conventional mortgage or need to save more money out of pocket at the front end of the mortgage. But even with more forgiving credit requirements, some borrowers are tempted to omit certain debt information from their home loan applications. What does it mean to conceal a debt or financial situation from your loan officer?
June 30, 2026Some borrowers start working on their credit scores but get impatient with the process because they can't predict when their efforts will change their FICO scores. How long does it take for your FICO scores to update when you pay off a loan, reduce your credit card balances, or take other steps to make yourself a better credit risk? The short answer is that credit reporting procedures are not standardized, and it may take more time than you realize to get those positive credit actions added to your credit report.
June 29, 2026Mortgage interest rates are "moving targets" shaped by national economic trends and the borrower's specific financial profile. What is your FHA loan interest rate? Much depends on the financial data you bring to the table. Lenders set interest rates daily based on a snapshot of market conditions, but the rate ultimately offered also reflects risk, equity, and the lending institution's internal operational costs.
June 28, 2026An FHA appraisal differs from a conventional appraisal. While the goal of a conventional appraisal centers on market value, the FHA appraisal also focuses on the buyer's safety and soundness. FHA lenders select the appraiser, not the home buyer.
June 24, 2026FHA loan closing costs vary by property price and geographic location, rather than by a single nationwide flat fee. Total settlement charges combine percentage-based fees, local government taxes, and marketplace service costs. If you are new to buying a home, you'll want to get familiar with the closing cost issues discussed here to avoid budgetary surprises later on.
