PRO MORTGAGE FUNDING · HOMEBUYER PLANNING
Cash to Close Calculator: Compare FHA and Conventional Loans
Either loan can require less cash up front. The difference comes down to the down payment you’re planning, the costs of buying the home, how you pay any upfront mortgage insurance, and which credits you can use.
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What should you budget before you shop?
- Money toward the purchase. Start with the down payment you’re planning. Once you’ve paid an earnest-money deposit, count it toward what you’ve already put in. It can reduce what you still owe on closing day.
- Costs to close. Budget for lender, appraisal, title, and settlement charges, plus prepaid expenses and initial escrow. Start with rough local figures for taxes and insurance, then update them for the property you choose.
Cash to Close Calculator
Enter one target home price, then a down payment percentage and loan and settlement costs for each option. The calculator shows each down payment in dollars. Optional dollar amounts left blank count as zero. Start with no credits unless you have a specific credit you want to model.
STEP 2
Your planning comparison
Enter your figures to compare.
| Planning result | FHA | Conventional |
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Green marks the lower displayed amount in each row. The combined monthly estimate includes principal, interest, and the monthly mortgage insurance shown above. FHA uses the automatic estimate unless you enter an override. Conventional uses the amount you enter. If left blank, Conventional PMI is excluded. Budget separately for property taxes, homeowners insurance, and any HOA dues. What’s included in a total monthly payment?
The automatic FHA estimate applies the annual premium rate to the base loan amount and divides by 12. It assumes the purchase price is the value used for the loan. The actual premium uses scheduled balances and can change over time. HUD monthly FHA premium calculation
Confirm eligibility, available credits, and actual loan costs with your loan officer as you get closer to buying.
Want help comparing your numbers?
Talk through your estimate and what could change for the home you’re considering.
What credits can help cover closing costs?
Lender credits through premium pricing. A lender may offer a credit toward eligible closing costs in exchange for a higher interest rate. That can reduce the cash you bring to closing and increase your monthly principal and interest. If you’re comparing a scenario with a lender credit, enter the rate that goes with the credit so you can see both sides of the trade-off. CFPB guide to lender credits
Seller concessions. As part of your purchase offer, you can ask the seller to contribute toward eligible closing costs. If the seller agrees, the usable amount depends on your purchase agreement, the loan program’s limits, and the costs it can cover. Budget for your required down payment separately. CFPB Loan Estimate explainer
What to enter in the calculator. Enter closing costs before credits. In each column, enter the combined dollar amount of credits you expect to be able to use toward eligible costs for that option. If you’re still shopping and don’t have a specific credit to model, leave the field blank. Confirm the usable amount with your loan officer as the purchase comes together.
Compare what you’ll pay after closing, too
Financing the upfront FHA premium can leave you with more cash at closing while increasing what you borrow. FHA generally also has ongoing mortgage insurance. A conventional loan may require private mortgage insurance, or PMI. When you’re further along and have formal Loan Estimates, compare the total monthly payment and borrowing costs alongside the cash due at closing.
CFPB guide to mortgage insurance · How to compare Loan Estimates
Cash to Close Questions
What’s the difference between cash to close and closing costs?
Closing costs are the fees and expenses associated with completing your home purchase and mortgage. Cash to close is the total amount you still need to bring to closing. It generally includes your down payment and closing costs, adjusted for deposits already paid, eligible credits, and other transaction adjustments. Use this calculator to estimate your budget, then confirm the final amount on your Closing Disclosure.
Which usually takes more cash to close, FHA or Conventional?
Either can require less cash. Compare the down payment, closing costs, and usable credits for the same property. How you pay the upfront FHA mortgage insurance premium can also change the result. Explore FHA loans or explore Conventional loans.
Can I use this calculator before I’ve picked a home?
Yes. Start with your target purchase price and rough cost estimates. If you’re unsure about closing costs, try a lower and higher budget to see how much the result could change.
Why can one loan require less cash at closing but have a higher monthly payment?
Financing FHA’s upfront premium reduces cash due at closing and increases the loan balance. A lender credit can also reduce cash due in exchange for a higher interest rate. Compare cash to close and monthly costs side by side.
How close will this estimate be to what I actually bring to closing?
It depends on how close your inputs are to the costs for the property you buy. Fees, taxes, insurance, deposits, and credits can change as the purchase comes together. Once available, use your Loan Estimate to refine your budget and your Closing Disclosure to confirm the amount due.
Talk through your budget with PMF
If you’re shopping in Michigan, Florida, or California, start with your target price and what you’ve saved so far. A PMF loan officer can help you identify which costs to plan for as you narrow down your options.
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