How Much Money Do I Need to Buy a $350,000 House in Texas?
If you're considering buying a $350,000 home in Texas, you may need considerably less—or more—cash than you expect.
Your down payment is only one part of the equation.
Quick Answer
The amount of money needed to buy a $350,000 home in Texas depends primarily on your loan program, down payment, closing costs, prepaid taxes and insurance, lender requirements, and any seller or lender contributions.
For example, a conventional buyer putting 3% down would need $10,500 for the down payment alone, while an FHA buyer putting 3.5% down would need $12,250.
But buyers should also prepare for expenses such as earnest money, an option fee, inspections, appraisal costs, closing costs, homeowners insurance, and prepaid expenses.
Let's break those numbers down.
Down Payment on a $350,000 House
Your required down payment depends on your mortgage program and qualifications.
Here are several examples:
| Down Payment | Amount on $350,000 |
|---|---|
| 0% | $0 |
| 3% | $10,500 |
| 3.5% | $12,250 |
| 5% | $17,500 |
| 10% | $35,000 |
| 20% | $70,000 |
Some qualified buyers may have access to VA or USDA financing that can allow zero-down financing, subject to eligibility and property requirements.
There may also be down-payment assistance programs available to certain buyers.
But the Down Payment Isn't the Only Money You'll Need
This is where many first-time buyers get surprised.
When we talk with buyers, we want them to understand the entire cash requirement, not simply the down payment.
Here are some expenses you may encounter.
Earnest Money
Earnest money is money delivered after the contract is executed to demonstrate the buyer's commitment to the transaction.
The amount is negotiable.
For illustration, 1% of a $350,000 purchase price would equal:
$3,500
Earnest money isn't necessarily an additional cost on top of everything else. When properly credited at closing, it generally applies toward the buyer's amount due.
Option Fee
Texas contracts can provide buyers with a termination option for an agreed period in exchange for an option fee.
The amount and length of the option period are negotiable.
The option period is particularly important because this is typically when buyers complete inspections and perform additional due diligence.
Home Inspection
Inspection prices vary based on the home's size, age, features, and additional inspections required.
A buyer might encounter costs for:
-
General home inspection
-
Termite/WDI inspection
-
Septic inspection
-
Well inspection
-
Pool inspection
-
Structural evaluation
-
HVAC evaluation
A general inspection on a typical home might cost several hundred dollars, while a larger property or one requiring additional inspections can cost considerably more.
Appraisal
Most financed purchases require an appraisal ordered as part of the lender's process.
Appraisal costs vary, but buyers should expect another several-hundred-dollar expense.
Properties involving significant acreage, unusual improvements, or other complexities may cost more to appraise.
Closing Costs and Prepaid Expenses
Buyers can also have lender fees, title-related charges, homeowners insurance, prepaid interest, property-tax escrows, and other expenses associated with establishing the mortgage and completing the transaction.
The exact amount depends heavily on the loan.
This is why buyers should get an actual Loan Estimate from their lender rather than relying entirely on an online closing-cost calculator.
Example: 3% Down on a $350,000 Home
Here's a simplified example.
Purchase Price: $350,000
3% Down Payment: $10,500
The buyer could also encounter:
Earnest Money: Negotiated
Option Fee: Negotiated
Inspection: Several hundred dollars or more
Appraisal: Several hundred dollars
Closing Costs/Prepaids: Loan-specific
Remember that earnest money paid earlier in the transaction is generally credited toward the buyer's amount due at closing rather than simply added again.
That's an important distinction when calculating how much cash you actually need.
Can the Seller Help Pay Your Closing Costs?
Potentially.
Seller contributions toward allowable buyer expenses can be negotiated into a Texas real estate contract, subject to the rules and limitations of the buyer's loan program.
This can be particularly valuable to a buyer who has sufficient income to afford the monthly payment but wants to preserve cash after closing.
For example, imagine two buyers each have $25,000 available.
Buyer A spends nearly all $25,000 getting into the house.
Buyer B negotiates seller assistance and keeps several thousand dollars in savings.
Everything else being equal, Buyer B may be in a much stronger financial position after closing.
Homes need furniture. Air conditioners eventually break. Cars need repairs. Life continues after closing.
We don't want buyers thinking only about whether they can close. We want them thinking about their financial position after they close.
Should You Put 20% Down?
Not necessarily.
The traditional advice that everyone needs 20% down to purchase a home isn't accurate.
Putting 20% down can have advantages, but tying up an additional $30,000, $40,000, or $50,000 isn't automatically the best financial decision for every buyer.
That's a conversation worth having with a knowledgeable mortgage professional based on your finances, loan options, monthly payment, mortgage insurance, interest rate, and longer-term plans.
Don't Forget Property Taxes
This is particularly important when comparing homes around Johnson County and North Texas.
Two homes with identical $350,000 prices can have significantly different monthly payments because they're located in different taxing jurisdictions.
Some newer communities may also have additional assessments or special districts.
When comparing houses, don't look at the purchase price alone.
Ask:
“What will this particular house actually cost me every month?”
That's the number that matters.
New Construction Can Be Different
Builders may periodically offer incentives such as closing-cost assistance, interest-rate incentives, or other promotions, particularly when buyers use a preferred lender or meet certain requirements.
Those incentives can be substantial.
However, an incentive doesn't automatically make one house the better deal.
We recommend comparing the total purchase price, financing terms, taxes, assessments, HOA expenses, upgrades, closing costs, and expected monthly payment.
How Much Should You Have Left After Closing?
There's no universal answer, but we generally don't like seeing buyers drain every dollar of savings simply to purchase a house.
Owning a home comes with unexpected expenses.
Maintaining an emergency reserve after closing can provide valuable protection when the inevitable repair or unexpected expense occurs.
Frequently Asked Questions
Can I buy a $350,000 house with only $10,500?
Possibly, but $10,500 represents only a 3% down payment. Your actual cash requirement depends on your financing, closing expenses, prepaid items, credits, and other transaction costs.
Do I need 20% down to buy a house?
No. Multiple mortgage programs allow qualified buyers to purchase with less than 20% down.
Is earnest money part of my down payment?
Earnest money is generally credited to the buyer at closing and can reduce the remaining amount the buyer needs to bring, depending on the transaction.
Can I finance my closing costs?
It depends on the loan and transaction structure. Some costs may effectively be offset through seller contributions, lender credits, assistance programs, or other financing strategies. Your lender can explain which options apply to your situation.
Can the seller pay all my closing costs?
Seller contributions are subject to negotiation and loan-program limitations. The maximum permitted amount depends on factors including the type of mortgage.
How do I know exactly how much money I'll need?
Get preapproved with a reputable mortgage lender and ask for an estimate based on the approximate purchase price you're considering.
Then have your real estate agent help you account for earnest money, option money, inspections, and other expenses that may occur before closing.
The Bottom Line
If you're buying a $350,000 home in Texas, don't ask only:
“What's my down payment?”
Ask:
“How much money will I need from the day we make an offer through the day I get the keys?”
That's the better question.
At Texan Heritage Realty Group, we help buyers throughout Cleburne, Johnson County, and surrounding North Texas communities understand the entire buying process before they make an offer.
If you're considering buying and want to know what a purchase at $250,000, $350,000, $500,000, or another price point might look like, we can help you map out the expected upfront expenses and connect those numbers with your lender's financing estimate.
Texan Heritage Realty Group | Fathom Realty
Serving Cleburne, Johnson County, and surrounding North Texas communities
texanheritage.com