Educational information; not financial advice or a pre-approval.
The short answer: five buckets of cash
To buy a home in Charlotte, you need to save for five things: the down payment, the payments due with your offer, the inspection and appraisal, closing costs and prepaids, and a cash cushion. How much it all adds up to depends mostly on your loan type and the home's price.
- Down payment: from $0 to 3.5% of the price for many qualified buyers, depending on the loan.
- Due diligence fee and earnest money: due when your offer is accepted.
- Inspection and appraisal: during the due diligence period.
- Closing costs and prepaids: on closing day.
- Reserves: what you keep in the bank after you move in.
For context, Canopy Realtor® Association reports that the median sales price in the Charlotte region was $410,000 in August 2026. The examples below use round, illustrative prices so the math is easy to follow.
Minimum down payment by loan type
For the loans first-time buyers use most, the minimum down payment runs from 0% to 3.5% of the price, as long as you qualify. With a lower credit score or other loan products, it can be more.
- FHA: according to HUD, your down payment can be as low as 3.5% of the purchase price. Mortgagee Letter 2010-29 sets the tiers: a score of 580 or higher qualifies for maximum financing, while 500 to 579 is limited to 90% loan-to-value, meaning 10% down. Since May 25, 2025, FHA is limited to U.S. citizens and lawful permanent residents, with a few exceptions (HUD ML 2025-09).
- 3%-down conventional: Fannie Mae's HomeReady and Freddie Mac's Home Possible allow as little as 3% down for buyers earning up to 80% of the area median income.
- VA: eligible veterans and service members need no down payment as long as the price isn't higher than the appraised value.
- USDA: offers 100% financing to those who qualify, when the home is in an eligible rural area and household income doesn't exceed 115% of the median. Check the address on the USDA eligibility map; USDA also requires lawful status.
ITIN loans are generally separate products (portfolio or non-QM), and each lender sets its own down payment rules. I review every case on its own.
Worked example: a $300,000 home
On an illustrative $300,000 price, the minimum down payment would be $10,500 with FHA, $9,000 with a 3%-down conventional loan, and $0 with VA or USDA for those who qualify.
- FHA, score 580 or higher: 3.5% of $300,000 = $10,500 (base loan of $289,500).
- FHA, score 500 to 579: 10% of $300,000 = $30,000.
- HomeReady or Home Possible: 3% of $300,000 = $9,000.
- VA or USDA, if eligible: $0 down.
These examples are illustrative and rounded, not a quote. Your lender will give you the real numbers for your situation.
Closer to the regional median, the numbers climb: at $400,000, 3.5% is $14,000 and 3% is $12,000. On the other hand, Rowan County's median was $299,990 in August 2026, according to Canopy MLS data; you can get to know that area on the Salisbury and Rowan County page. To estimate a range based on your income and debts, try the How much home can I afford? calculator.
How down payment assistance can cover part of it
An assistance program can shrink what you need to save: options may include up to $15,000 toward the down payment plus closing-cost assistance programs, subject to qualification.
The North Carolina Housing Finance Agency (NCHFA) offers the NC 1st Home Advantage Down Payment: $15,000 for eligible first-time buyers and military veterans, with a 640 minimum credit score. Its sales price limit is $525,000, and income limits vary by county and household size. Separately, the NC Home Advantage Mortgage™ can include assistance of up to 3% of the loan amount; on an illustrative $289,500 loan, that's $8,685.
In the FHA example, $15,000 in assistance, if you qualify, would cover the $10,500 down payment; how any remainder is applied depends on the program and the lender. Terms and funding can change. To see where you stand, take the Do I qualify for down payment help? screener or read my down payment assistance page.
Family can pitch in, too. FHA accepts gifts from relatives, employers, and other approved donors toward the down payment and closing costs, as long as no repayment is expected; sellers and agents can't be donors (HUD). HomeReady and Home Possible accept gifts as well.
Cash at the offer: due diligence fee and earnest money
Once your offer is accepted, you need funds ready for two payments: the due diligence fee, which goes straight to the seller, and the earnest money, which is held in escrow. Both amounts are negotiated in each contract.
- Due diligence fee: delivered to the seller as of the contract's effective date (NCREC), and generally not refunded if you decide not to buy.
- Earnest money: deposited into a trust or escrow account (NCREC), and generally returned if you terminate in writing before the due diligence period ends (NCREC).
There's no set figure: it depends on the price, the competition for the home, and what we negotiate. What matters is that this money leaves your savings weeks before closing, so have it ready before we start writing offers.
Inspection and appraisal
The inspection and the appraisal are due diligence-stage costs: you hire and pay the inspector, and the lender orders the appraisal as a third-party cost. Prices vary by home and provider.
Get quotes before you make an offer, and ask your lender whether the appraisal is collected upfront or at closing. Some homes may need additional inspections depending on their features, so leave some room in your budget.
Closing costs and prepaids
On top of your down payment, at closing you'll pay loan costs, third-party and government fees, plus prepaids such as your first year of homeowner's insurance and the initial escrow deposit. There's no fixed percentage: your Loan Estimate shows the estimate for your loan.
The Consumer Financial Protection Bureau (CFPB) groups these into lender charges, points, third-party costs such as the appraisal and title insurance, government fees, and prepaids. Your lender must send the Loan Estimate within three business days of your application (CFPB), and you'll get your Closing Disclosure at least three business days before closing.
Some loans carry their own charges. FHA has an upfront mortgage insurance premium of 1.75% of the base loan (HUD ML 2023-05): about $5,066 on the $289,500 loan in our example. VA charges a funding fee of 2.15% on first use with less than 5% down, with exemptions for some veterans, and USDA has an upfront fee of 1% of the loan. Ask whether each one is paid at closing or rolled into the loan.
Here's some good news: in North Carolina, the seller pays the deed excise tax, at $1 per $500 of the price (G.S. 105-228.30). I cover the rest in detail in closing costs in North Carolina.
Reserves and an emergency fund
You should still have money left after closing: an emergency fund for the house and, in some cases, reserves your lender requires for your program. Draining your account to zero leaves your family with no cushion for the unexpected.
Owning a home brings costs your landlord used to cover: repairs, maintenance, and appliances that quit. And the North Carolina Department of Insurance points out that homeowner's insurance has no grace period, so that bill always needs to be covered.
If you're short on any of these today, it doesn't mean you can't buy; it means you need a plan. The 90-day plan helps you organize your savings, credit, and paperwork. And if you'd like to run the numbers on your real situation, book a free 20-minute call. ✦
Frequently asked questions
Do I need all the money at once?
Not all at the same time. The due diligence fee and earnest money are due when your offer is accepted; the inspection happens during the due diligence period; and the down payment, closing costs, and prepaids are due on closing day. Still, it's smart to have the full amount identified before you make an offer, because your lender will verify your funds and nobody wants surprises halfway through.
What if I don't qualify for down payment assistance?
You still have paths forward. A conventional loan like HomeReady or Home Possible allows as little as 3% down if your income is within the area limit, and VA and USDA loans require no down payment for those who qualify. You can also use acceptable gift funds from family. And if you're only a little short, a few months of focused saving can put you in a much stronger spot.
Does the seller pay any closing costs?
In North Carolina, state law puts the deed excise tax on the seller, at $1 for every $500 of the price. On an illustrative $300,000 sale, that's $600 that doesn't come out of your pocket. Everything else depends on what's agreed in the contract and on your loan type, so we go over it together when we prepare your offer.
How will I know what closing will cost me?
Your lender must send you a Loan Estimate within three business days of receiving your application, listing your estimated loan and closing costs. Then, at least three business days before closing, you'll receive the Closing Disclosure with the final figures. Compare the two documents line by line and ask about any difference before you sign anything.
Can I use money a relative gives me?
In many cases, yes. FHA allows gifts from relatives and other approved donors toward the down payment and closing costs, as long as you don't have to pay them back, and HomeReady and Home Possible accept gifts too. Your lender will ask you to document where the money came from, usually with a gift letter and bank statements, so mention it early.
Want to know what's missing, or whether you're ready now? Let's review your situation on a free 20-minute call, in English or Spanish, no obligation.
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