Short answer: To buy a home at Houston's median price of $330,000, most buyers need about $18,000 to $28,000 in cash at closing with an FHA loan. That covers a 3.5% down payment plus closing costs. With a 20% down payment, it's about $73,000 or more. Down payment assistance and seller-paid closing costs can lower the cash you need by thousands of dollars.

Below is a breakdown of every cost to plan for, with real numbers for the Houston area.

1. The down payment

You don't need 20% down to buy a home. That's one of the biggest myths in real estate. Here's what a down payment looks like on a $330,000 home (the Greater Houston median single-family price in August 2026, per HAR):

Loan type	Minimum down	On a $330,000 home
VA (eligible veterans)	0%	$0
USDA (eligible rural areas)	0%	$0
Conventional (first-time buyers)	3%	$9,900
FHA	3.5%	$11,550
Conventional	5%	$16,500
Conventional (no PMI)	20%	$66,000

Putting less than 20% down usually means paying mortgage insurance each month. For many buyers, that trade-off is worth it to get into a home sooner.

2. Closing costs

Closing costs typically run about 2% to 5% of the purchase price. On a $330,000 home, that's roughly $6,600 to $16,500. They include:

• Lender fees (origination, underwriting, credit report)
• Appraisal
• Title insurance and escrow fees
• Prepaid property taxes and homeowners insurance to set up your escrow account
• Prepaid interest

Good news: In today's Houston market, many sellers and builders are willing to pay part or all of a buyer's closing costs. FHA loans allow sellers to contribute up to 6% of the price toward your costs. Your agent can negotiate this into your offer.

3. Money you need before closing

Some costs come up while you're under contract, before closing day:

• Earnest money: Often around 1% of the price in the Houston area, about $3,300 on a $330K home. It's credited back to you at closing.
• Option fee: In Texas, buyers usually pay a small fee, often a few hundred dollars, for an option period. That's a window where you can back out for any reason, usually to complete inspections.
• Home inspection: Typically a few hundred dollars. More if you add a sewer scope, foundation or pool inspection.

4. Your monthly payment in Houston

Your down payment is only part of it. In Houston, property taxes and insurance make up a big share of the monthly payment.

• Property taxes: In Harris County, effective rates often land around 1.8% to 2% or more of the home's value each year, depending on your school district, MUD and city. Texas has no state income tax, so property taxes are higher than in most states. The good news: once you live in the home, you can file for a homestead exemption. School districts now exempt $140,000 of a homestead's value.
• Homeowners insurance: Houston-area premiums commonly run about $5,700 to $6,600 per year, more than double the national average. Flood insurance is separate.

Example: A $330,000 home with 3.5% down on an FHA loan at 7.28% (the Freddie Mac average on Oct. 1, 2026):

• Principal and interest: about $2,180
• Property taxes (2%, before homestead exemption): about $550
• Homeowners insurance: about $475
• FHA mortgage insurance: about $145
• Estimated total: about $3,350 per month

Your numbers will be different depending on the home, the area and your loan. A lender can give you an exact estimate.

5. Down payment assistance in Houston and Texas

If saving for a down payment is the hardest part, look into assistance programs. Houston-area buyers may qualify for:

• City of Houston Homebuyer Assistance Program (HAP): Help with down payment and closing costs for income-eligible buyers purchasing inside Houston city limits.
• TDHCA My First Texas Home: A state program offering a mortgage plus down payment assistance, mainly for first-time buyers.
• TSAHC programs: Texas State Affordable Housing Corporation programs, including Homes for Texas Heroes for teachers, police, firefighters, veterans and other qualifying professions.

Each program has its own income limits, price limits and rules, and they change often. Ask your lender which ones you qualify for before you start shopping.

6. Keep a cushion after you move in

Don't spend every dollar to get to closing. Plan for moving costs, utility deposits, basic furniture and an emergency fund. Some lenders also want to see a few months of mortgage payments left in savings after closing.

Quick summary: how much you need

• Low end (FHA + seller pays closing costs or assistance): about $12,000–$15,000
• Typical FHA buyer: about $18,000–$28,000
• 20% down, no mortgage insurance: about $73,000–$83,000

Plus earnest money and inspection costs up front, and savings for after you move in.

Find homes in your budget

Once you know your number, the fun part starts. Search homes for sale in Houston, Pearland, Pasadena, Sugar Land and nearby cities and filter by your price range. Have questions about what you can afford? Call or text My City Homes Realty at 713-996-9755.

Figures are estimates for illustration, based on HAR's August 2026 market report, Freddie Mac's October 1, 2026 rate survey and published Houston-area tax and insurance averages. Your costs will vary. Talk with a licensed lender for a personalized quote.