Quick Answer
Most first-time buyers need more cash than just a down payment. Plan for three buckets: your down payment, your closing costs, and a cash reserve. On a typical Las Vegas Valley purchase, that often means saving roughly 5% to 8% of the purchase price on top of whatever the seller agrees to cover, though loan programs and down payment assistance can lower what you bring to the table.
When people ask how much money they need to buy a home, most are thinking about the down payment. That is only part of the answer. The real number is a combination of your down payment, your closing costs, your earnest money deposit, and a cash reserve. Here is how first-time buyers can figure out what they actually need, without guessing.
The Three Buckets of Homebuying Cash
Almost every home purchase comes down to three buckets of money: the down payment, the closing costs, and the cash you keep on hand after closing. Each one matters, and skipping any of them is where first-time buyers get caught off guard.
1. The Down Payment
Your down payment is the portion of the purchase price you pay out of pocket, with the mortgage covering the rest. The minimum depends on the loan program you use.
For 2026, the baseline conforming loan limit for a single-family home is $832,750, which sets the ceiling for most conventional loans. The FHA floor is $541,287, and the FHA ceiling in high-cost areas is $1,249,125. Minimum down payments by program:
- Conventional loans: as low as 3% down for many qualified buyers
- FHA loans: 3.5% down
- VA loans: 0% down for eligible veterans and service members
- USDA loans: 0% down in eligible rural areas
On a $400,000 home, a 3% down payment is $12,000, and a 3.5% down payment is $14,000. A 20% down payment is $80,000, but it is not required. Many first-time buyers put down far less and pay private mortgage insurance until they build equity.
2. Closing Costs and Prepaids
Closing costs are the fees you pay to complete the transaction, and they are separate from your down payment. In Nevada, buyers commonly pay about 2% to 5% of the purchase price in closing costs. On a $400,000 home, that is roughly $8,000 to $20,000, though seller credits and negotiated terms can reduce what you pay out of pocket.
Closing costs include lender fees, the appraisal, title insurance, escrow and recording fees, and prepaids such as property taxes and homeowners insurance deposited into your escrow account. Every item is listed on your Loan Estimate early in the process and again on your Closing Disclosure before you sign.
The closing-cost estimator on this site and the true monthly payment calculator can help you see how these costs affect your budget before you commit.
3. Earnest Money and Cash Reserves
Earnest money is a deposit you make when your offer is accepted to show the seller you are serious. It is not an extra cost: it is credited toward your down payment and reduces the cash you owe at closing. In a competitive Las Vegas market, earnest money is often 1% to 3% of the purchase price.
You should also keep a cash reserve after closing. Moving costs, furniture, appliances, utility deposits, and the first few months of maintenance add up quickly. Lenders also look at your remaining cash when they review your application.
How to Figure Out Your Real Number
Start with the purchase price you are targeting, then work through each bucket. The mortgage calculator shows your estimated principal and interest, and the affordability calculator helps you see what price range fits your monthly budget before you add taxes, insurance, and HOA fees.
A good rule of thumb for first-time buyers is to plan for roughly 5% to 8% of the purchase price in cash for the down payment plus closing costs, then add a cushion for earnest money and reserves. Your exact number depends on your loan program, the sale price, what the seller agrees to cover, and whether you qualify for down payment assistance.
Down Payment Assistance Can Lower the Number
You do not have to save the entire amount on your own. Nevada offers several programs that can reduce what first-time buyers bring to the table:
- Home Is Possible (HIP) through the Nevada Housing Division provides up to 4% to 5% of the loan amount as a grant or forgivable second mortgage for down payment and closing costs, typically forgiven after three years if you stay in the home.
- Home First through the Nevada Housing Division offers up to $15,000 in down payment assistance.
- Home At Last through the Nevada Rural Housing Authority offers down payment and closing cost assistance and does not require first-time buyer status.
- Clark County HOME offers a 0% interest deferred loan for eligible first-time buyers purchasing within Clark County.
Program requirements, income limits, and funding availability change, so confirm current terms with the Nevada Housing Division or a participating lender. This site does not determine eligibility or underwrite loans.
Start With Preapproval, Not a Price
Before you worry about the exact dollar amount, get preapproved with a lender. Preapproval tells you what you can borrow, shows sellers you are a serious buyer, and gives you a realistic starting point for the savings plan above. Financing questions are best directed to the site's financing and preapproval resources, where a licensed Loan Originator can review your specific situation.
The Bottom Line
You need more than a down payment to buy a home, but you also do not need as much as many buyers assume. Break the purchase into down payment, closing costs, and reserves, use the calculators to estimate each piece, and check whether down payment assistance fits your situation. With a clear number and a preapproval in hand, you can shop with confidence.
If you are ready to start, order a free Property DNA report for any home you are serious about to review ownership history, tax records, and comparable sales before you make an offer.
