Buying a home? Here's what you really need to know about the money you’ll need at Closing.

Buying a home is one of the most exciting—and financially important—decisions you’ll ever make. Whether you’re a first-time buyer or looking to refresh your knowledge, it’s essential to understand three key terms:

• Down Payment

• Closing Costs

• Seller Assist

Let’s break it all down, so you know exactly what to expect—and how to plan for it.

✅ What Is Closing?

Closing Day is when the deal becomes official—you sign the paperwork, the title transfers, and you get the keys to your new home.

At closing, you’re required to pay two things:

1. Your Down Payment

2. Your Closing Costs

Combined, this is called your Total Cash to Close—the full amount you need to bring with you to complete the transaction.

💰 Down Payment Requirements by Loan Type

How much do you need to put down? It depends on the loan program you choose:

• Conventional Loan – Minimum 3%, or more if you prefer

• FHA Loan – 3.5% down

• USDA Loan – 0% down (rural areas, income restrictions apply)

• VA Loan – 0% down (available to eligible veterans & active-duty military)

📋 What’s Included in Closing Costs?

Closing costs typically range from 6% to 10% of your loan amount. These may include:

• Property taxes (prorated)

• Homeowners insurance (first year paid upfront)

• Title insurance & endorsements

• Appraisal & credit report

• Doc prep, notary, courier, and admin fees

• Recording fees

• Buyer broker fee (if applicable)

These vary depending on your lender, location, and the property itself.

🤝 What is Seller Assist?

Seller Assist (also called seller concessions) lets the seller contribute a portion of the sale proceeds to help pay your closing costs. While this can lower your out-of-pocket expenses, it’s important to understand:

💡 Seller Assist is not a gift—you're financing it through your mortgage. The seller accepts a lower net sale price in exchange for helping cover your costs.

Loan program limits apply:

• Conventional Loans – Up to 3%–6%

• FHA, USDA, PHFA – Up to 6%

• VA Loans – Up to 10%, based on a specific formula

🏡 Are Grants Available?

Yes! There are grant programs available to help with down payments and closing costs, especially for first-time or income-eligible buyers. These can significantly reduce what you need to bring to the table—and in many cases, the money does not need to be repaid.

🎯 Final Thoughts

Planning for a home purchase starts with understanding the full picture of your upfront costs. With the right loan, Seller Assist, and potential grant programs, your dream of homeownership could be closer than you think.

Questions about how this works in your area? Let’s talk. I’m happy to guide you through every step of the process.

Jeffrey Boden

jboden@TPRSold.com

814-242-7499 call or text