One of the most common questions I hear from buyers is: “How much do I actually need?” Not how much you should have, or what’s ideal. What’s the minimum to actually get the keys?
The answer depends on the loan type and the home. Let me break down the numbers for Harrisonburg in 2026.
The Minimum Cash: Down Payment + Closing Costs
Median sales price in Harrisonburg and Rockingham County, 12 months through August 2026: $345,000 (from my September 2026 market report)
Down Payment by Loan Type
| Loan Type | Minimum Down | On $345K Home |
|---|---|---|
| Conventional (common) | 5% | $17,250 |
| Conventional (eligible buyers) | 3% | $10,350 |
| FHA | 3.5% | $12,075 |
| VA (if eligible) | 0% | $0 |
| USDA (if eligible) | 0% | $0 |
The trade-off: a smaller down payment means a bigger loan and a higher monthly payment, and it usually comes with mortgage insurance (PMI on conventional, MIP on FHA, a guarantee fee on USDA) or a funding fee (VA).
Closing Costs: The Fees on Top
Closing costs are the lender charges, title and settlement fees, recording taxes, and prepaid items you pay at closing. They typically run 2% to 5% of the purchase price.
| Cost Category | What It Covers |
|---|---|
| Lender fees | Origination, processing, underwriting |
| Appraisal | Lender-ordered valuation |
| Title search and title insurance | Lender’s policy (required) and owner’s policy (optional, recommended) |
| Homeowners insurance | First year’s premium, often paid at closing |
| Property taxes and escrow | Prorated taxes and your initial escrow deposit |
| Virginia recording taxes | State and local taxes to record the deed and deed of trust |
| Settlement agent fee | The attorney or title company conducting closing |
| HOA fees (if applicable) | Transfer, resale packet, or capital contribution fees |
Your lender’s Loan Estimate shows your actual numbers. At 2% to 5%, closing costs on a $345K home are roughly $6,900 to $17,250.
Cash You Pay Before Closing
These are usually paid before closing and are generally not refundable once the service has been performed, so check each provider’s terms:
- Home inspection
- Radon test (optional)
- Wood-destroying insect inspection (often required for VA loans)
- Well and septic inspections (if the home isn’t on public water and sewer)
Ask for quotes when you schedule; prices depend on the home and the tests you choose.
Worked Example: Real Numbers for Harrisonburg
Scenario: You’re buying a $345,000 home with an FHA loan (3.5% down). The closing cost and inspection figures here are estimates for illustration only.
| Item | Amount |
|---|---|
| Down payment (3.5%) | $12,075 |
| Closing costs (estimate 3%) | $10,350 |
| Inspection and tests (estimate) | $750 |
| Estimated total cash needed | $23,175 |
If the seller agrees to pay 2% toward your closing costs ($6,900), your out-of-pocket drops to $16,275.
What About Seller Concessions?
It can be reasonable to ask the seller to cover part of your closing costs, especially on a home that’s been on the market a while. Loan programs cap how much a seller can contribute:
- Conventional loans: 3%, 6%, or 9% of the lower of price or appraised value for a home you will live in, depending on your down payment (2% for investment property), and never more than your actual closing costs
- FHA loans: up to 6%
- VA loans: up to 4% in concessions, plus normal closing costs
The program limit is just a ceiling. What a seller actually agrees to depends on the home and the market, and a concession request makes your offer less competitive.
Loan Programs That Lower Your Down Payment
If you don’t have $17,250 saved:
VA Loan (for eligible service members, veterans, and some surviving spouses)
- Zero down payment
- No monthly mortgage insurance
- One-time funding fee, typically 1.25% to 3.3% of the loan depending on down payment and prior use (can be financed; some borrowers are exempt)
- Requires a Certificate of Eligibility
USDA Loan (for eligible properties and incomes)
- Zero down payment
- The property must be in a USDA-eligible area. Check the specific address on the USDA eligibility map.
- 1% upfront guarantee fee (can be financed) plus an annual fee
- Household income limits apply
FHA Loan
- 3.5% down ($12,075 on $345K) with a 580+ credit score
- Upfront and annual mortgage insurance (MIP). With less than 10% down, the annual MIP lasts for the life of the loan unless you refinance.
- More flexible credit requirements than many conventional loans
The Hidden Costs: Budget Reserves Too
Lenders may approve you up to your maximum, but I recommend keeping savings in the bank after closing. Here’s why:
- HVAC systems, roofs, and water heaters all wear out eventually, and replacements cost thousands
- Plumbing and electrical surprises happen
- Routine maintenance is an ongoing cost of owning
If you close with zero reserves, the first big repair can push you into debt.
How to Save Fast if You’re Not There Yet
If you’re short of your target, here’s the math:
- $100/month = $1,200/year
- $300/month = $3,600/year
- $500/month = $6,000/year
Steady saving over a year or two, combined with a low-down-payment loan program, gets a lot of buyers to the closing table.
Key Takeaways
- Minimum down: 0% (VA/USDA, if eligible) to 3% to 5% (conventional)
- Closing costs: typically 2% to 5% of the purchase price
- Inspections and tests are paid up front, before closing
- On a $345K home with 5% down: roughly $24,150 to $34,500 including closing costs
- Seller concessions can help, within loan program limits
- Keep reserves after closing
Ready to Calculate Your Number?
If you know roughly what you want to buy, let’s get specific. Call me at (540) 246-9067 and we can walk through your cash needs based on the homes you’re looking at.
Frequently Asked Questions
What's the minimum down payment I can make?
FHA loans allow 3.5% down. VA loans allow 0% for eligible borrowers, and USDA loans allow 0% for eligible properties and incomes. Conventional loans can go as low as 3% for some buyers, and 5% is common. On a $345,000 home, that's $12,075 for FHA, $0 for VA or USDA, or $17,250 for 5% conventional.
Can the seller pay my closing costs?
Yes, if the seller agrees and within your loan program's limits. On conventional loans the limit is 3%, 6%, or 9% for a home you will live in, depending on your down payment (2% for investment property), measured against the lower of price or appraised value, and never more than your actual closing costs; FHA allows up to 6%; VA allows up to 4% in concessions plus normal closing costs. Seller concessions cannot cover your down payment, though gifts, grants, and assistance programs can.
Do I need cash reserves after closing?
Some loan programs require reserves, and even when they don't, I recommend keeping savings after closing for repairs and emergencies. Furnaces fail and water heaters leak. If you're completely tapped out after closing, you're too tight.
What about appraisals and inspections?
The appraisal is ordered by your lender and usually paid by you. The home inspection and add-on tests (radon, wood-destroying insects, well and septic) are paid by you, often before closing. Get quotes when you schedule; prices vary by home size and the tests you choose.
Which loan program requires the least down?
VA loans (zero down for eligible borrowers), USDA loans (zero down for eligible properties and incomes), and FHA loans (3.5% down). Ask your lender which you qualify for.
How do I save faster?
Automate transfers to a dedicated savings account. Cut one recurring expense. Put bonuses and tax refunds toward the goal. Small monthly amounts add up over a year or two.