How Much Do You Actually Need Saved to Buy a Home in Arizona?
One of the biggest myths we hear from buyers in Arizona is:
“I’ll wait until I have 20% saved.”
And while that sounds responsible… it’s not always necessary.
The truth? The amount you need saved depends on your loan type, goals and price point, not a one size fits all number.
Let’s break it down.
1. Down Payment: It’s Often Less Than You Think
Contrary to popular belief, 20% down is not required.
Here are common loan options in Arizona:
Conventional Loan
• As little as 3–5% down for qualified buyers
FHA Loan
• 3.5% down
VA Loan
• 0% down for eligible veterans and active military
On a $400,000 home in the Northwest Valley, that could mean:
• 3% down = $12,000
• 3.5% down = $14,000
• 5% down = $20,000
That’s very different from $80,000 (which would be 20%).
2. Closing Costs
In Arizona, buyers typically pay between 2–4% of the purchase price in closing costs.
On that same $400,000 home, that could range from:
• $8,000 – $16,000
The good news?
Seller concessions are still common in many parts of today’s market which means sellers may contribute toward your closing costs. These are things your agent can negotiate when putting in an offer.
3. Earnest Money Deposit
This is the deposit you submit with your offer to show you’re serious.
Typically 1–2% of the purchase price.
For a $400,000 home: $4,000 – $8,000.
Important: This isn’t an extra cost! It goes toward your down payment or closing costs.
4. Moving & Cushion
We always recommend buyers keep:
• A small emergency fund
• Moving expenses
• Utility setup funds
You don’t want to drain your savings completely on day one.
So… What’s the Realistic Total?
For many Arizona buyers purchasing around $400,000 with 3–5% down:
💰 Rough estimate: $20,000–$35,000 saved
Less if you qualify for down payment assistance.
More if you choose a larger down payment.
Every situation is different but it’s often far more achievable than most people think.
The Bigger Question
Instead of asking, “Do I have 20% saved?”
A better question might be:
“Am I closer than I realize?”
We walk buyers through this every day here in the Northwest Valley. Sometimes people are ready now. Sometimes they’re 6 months away. Sometimes 12.
The first step isn’t buying.
It’s getting clarity.
If you’re curious what your real number looks like, let’s have a conversation. No pressure. Just a plan.
— Home Now Team
Serving the Northwest Valley & surrounding Arizona communities