How Much Money Do You Need to Buy a House in Delaware County, PA?

One of the biggest misconceptions I hear from first-time buyers is that the amount of money you need to buy a house is basically your down payment.

It isn't.

If you're planning to buy a home in Delaware County, your actual upfront budget can include your down payment, closing costs, deposit, inspections, appraisal-related costs when applicable, prepaid taxes and insurance, and money you want left over after settlement.

The good news is that you may not need anywhere close to 20% down.

The better question is:

That's the number I want first-time buyers thinking about.

You Don't Necessarily Need 20% Down

Putting 20% down is one way to buy a home. It is not a universal requirement.

Depending on your mortgage program and qualifications, there are financing options with substantially smaller down payments. Some qualified conventional borrowers, for example, may have options beginning around 3% down.

That distinction matters.

On a $350,000 home:

• 3% is $10,500
• 5% is $17,500
• 10% is $35,000
• 20% is $70,000

Those are dramatically different starting points.

Your mortgage lender—not your Realtor—should determine which financing options you actually qualify for and explain the costs and tradeoffs of each.

From my side of the transaction, I want buyers to understand something simpler:

Don't automatically assume homeownership is years away because you haven't saved 20%.

Find out what your real numbers look like first.

Your Down Payment Is Only Part of the Money You Need

This is where first-time buyers can get caught off guard.

Say you've saved enough for a 3% or 5% down payment. That's a great start, but it doesn't necessarily mean you've saved everything you'll need.

There are other costs involved in purchasing a home.

1. Down payment

This is the portion of the purchase price you're paying rather than financing.

Your required amount depends on your loan program and financial situation.

2. Closing costs

Closing costs are separate from the down payment.

They can include lender charges, title-related expenses, government and recording charges, appraisal fees, prepaid expenses and other costs associated with obtaining the mortgage and transferring the property.

As a broad planning range, Freddie Mac and the Consumer Financial Protection Bureau say closing costs typically run around 2% to 5% of the purchase price, excluding the down payment.

That's a planning range—not a quote.

Your actual costs can be higher or lower depending on your loan, lender, property, taxes, insurance, timing and other details.

3. Your deposit

When an offer is accepted, the agreement may require a deposit.

This is important:

Don't automatically count the deposit as an entirely separate cost on top of everything else.

Money you've already deposited can generally be credited as part of the transaction when your final cash-to-close amount is calculated.

It does, however, affect timing.

You may need access to some of your money shortly after going under contract rather than waiting until settlement.

4. Inspections and due diligence

If you elect inspections or other due diligence, those services can create additional out-of-pocket expenses during the transaction.

The exact inspections you choose depend on the property, your agreement and your comfort level.

I don't like buyers planning their budget so tightly that paying for appropriate due diligence suddenly becomes a problem.

5. Prepaid expenses and escrow

Some of the money due at closing may not feel like a traditional "fee."

Depending on your mortgage, you may have upfront amounts associated with homeowners insurance, property taxes, prepaid interest or establishing an escrow account.

This is one reason two similarly priced homes can require different amounts of money at closing.

What Could This Look Like on a $350,000 Delaware County Home?

Let's use a deliberately simple example.

Suppose you're considering a $350,000 home.

A 3% down payment would be:

$10,500

A 5% down payment would be:

$17,500

Using the broad 2%–5% closing-cost planning range, closing costs on a $350,000 purchase could roughly represent:

$7,000–$17,500

That does not mean every buyer of a $350,000 home should expect to bring the down payment plus exactly that amount to settlement.

Credits, assistance programs, deposits already paid, lender structure, taxes, insurance and the specifics of the transaction can all change the final number.

That's exactly why I don't like giving a first-time buyer one magic percentage and saying, "This is what you need."

There are too many moving parts.

Why Location Inside Delaware County Matters

A $400,000 house is not automatically financially equivalent to every other $400,000 house.

Property taxes can differ from one property and municipality to another. Insurance costs can differ. An HOA or condo fee can change the monthly expense. The condition of the home can change what you're comfortable keeping in reserves after settlement.

That's why buyers comparing places like Havertown, Springfield, Media, Ridley Park or other parts of Delaware County shouldn't look at purchase price alone.

I would rather have you compare the whole picture:

Purchase price + monthly payment + cash needed + property condition + money left after closing.

That's much more useful than simply asking, "What's the highest price I'm approved for?"

Can First-Time Buyer Assistance Reduce the Amount You Need?

Potentially.

Pennsylvania Housing Finance Agency programs can provide down-payment and/or closing-cost assistance to qualified buyers.

For example, PHFA's current Keystone Forgivable in Ten Years program, commonly called K-FIT, can provide eligible borrowers with assistance equal to 5% of the lesser of the purchase price or appraised value, with the second mortgage forgiven gradually over ten years.

PHFA also has specific eligibility requirements, and not every buyer or property will qualify.

There are other assistance structures as well.

This is an area where I strongly recommend talking with a participating lender rather than assuming you qualify—or assuming you don't.

Assistance should be evaluated as part of your financing plan, not treated as free money that every first-time buyer automatically receives.

And some programs aren't limited exclusively to first-time buyers.

Could the Seller Help With Closing Costs?

Sometimes.

Depending on the property, financing, offer structure and negotiating environment, a buyer may be able to negotiate a seller credit toward eligible closing costs.

But a seller credit isn't guaranteed.

It can also affect how competitive an offer looks to the seller.

This is where the real estate side and lending side need to work together.

Your lender determines what your financing permits. Your Realtor can help you decide whether requesting a credit makes sense strategically for that particular property and negotiation.

I would never build your entire buying plan around the assumption that every seller will pay your closing costs.

The Number I Care About After Closing

There's another number that doesn't get enough attention:

How much money will you still have after you get the keys?

Buying a house and draining every dollar from your accounts are not the same goal.

Homes need things.

Maybe it's a repair six weeks later. Maybe you need furniture. Maybe an appliance decides it has had enough. Maybe nothing happens at all.

I still want buyers thinking about reserves.

The Consumer Financial Protection Bureau similarly recommends considering money for moving, repairs, furnishings and an emergency cushion rather than treating every available dollar as money for closing.

Being able to technically complete the purchase doesn't automatically make a particular budget comfortable.

So How Much Should You Save Before Buying?

There isn't one responsible number I can give every Delaware County first-time buyer.

Instead, figure out these five numbers:

1. Your estimated down payment.
2. Your estimated closing costs.
3. Your likely out-of-pocket transaction expenses.
4. The money you'll need available at the appropriate stages of the transaction.
5. The amount you want left in savings after settlement.

Then have a lender turn those estimates into numbers based on your actual financing scenario.

You may discover you need more than you expected.

You may also discover you're much closer than you thought.

Both are useful answers.

What Should You Do If You're Not Sure You're Ready?

Start before you're ready to tour houses.

Seriously.

You don't need to call me and announce that you're buying a house next Saturday.

If you're six months away, a year away or simply wondering whether buying in Delaware County is realistic, that's enough to start putting a plan together.

The first conversation can be about your timeline, what you're hoping to buy, where you're considering living and what you still need to figure out.

Then the right lender can handle the financing questions that belong with them.

I'd much rather help you understand the process early than have you fall in love with a house first and try to figure everything out afterward.

You Don't Need to Have Everything Figured Out

If you're thinking about buying your first home in Delaware County, don't let a random down-payment percentage on the internet decide whether you think you're ready.

Figure out your numbers.

I'm Tom Fior, a Realtor with Coldwell Banker Realty and The Steven Eckell Team. I help first-time home buyers throughout Delaware County and Philadelphia understand the process, evaluate homes and make decisions without turning the experience into a sales pitch.

If you're wondering whether you're three months away or two years away, that's a perfectly reasonable place to start.

If you want the full picture before you start touring homes, here is my first-time home buyer guidance for Philadelphia and Delaware County — how the process works, what happens at each step and which questions belong with a licensed mortgage professional.

Your next move can start with a conversation.