How Much Cash Do You Need to Buy a Home in Northern Virginia?

For most Northern Virginia buyers, the cash needed to buy a home is the down payment plus roughly 2% to 4% of the price for closing costs and prepaids, plus a few hundred to a couple thousand dollars for inspections and the appraisal paid along the way. On a $600,000 townhouse with 5% down, that can easily mean $45,000 or more in total. The exact figure depends on your loan type, the price, the HOA and how you negotiate, so the goal is to map every dollar before you write an offer.

The five buckets of cash, and when each is due

Bucket	Typical range	When it’s paid	Refundable?
Earnest money deposit	Often 1% to 3% of price, negotiable	Within a few days of ratification	Depends on contract contingencies
Inspections	Several hundred to over $1,000 depending on scope	During the inspection period	No
Appraisal	Often several hundred dollars	Ordered by lender after ratification	No
Down payment	0% to 20%+ of price	At closing (earnest money counts toward it)	N/A
Closing costs and prepaids	Often 2% to 4% of price	At closing	N/A
Reserves	Varies by lender and loan	Must be in your accounts at closing	Stays yours

Your Loan Estimate shows a line called ‘Estimated Cash to Close.’ It’s the best single number to plan around, but it doesn’t include inspection fees or required reserves, so keep a separate list.

Down payment: how much you really need

• VA loans: eligible service members and veterans can buy with no down payment, subject to entitlement and lender rules.
• FHA loans: a minimum of 3.5% down with qualifying credit.
• Conventional loans: some programs allow 3% down for eligible buyers; 5% to 10% is common. Below 20%, you’ll usually pay private mortgage insurance, which I explain in my PMI guide.
• Jumbo loans: above the conforming loan limit (the high-cost area limit for Northern Virginia was $1,209,750 for a one-unit home in 2025), lenders often want 10% to 20% down and larger reserves.

If 20% down feels out of reach, it often isn’t required. My post on down payment myths covers why, and the down payment assistance guide lists programs that can help.

Virginia closing costs, line by line

Who pays what is negotiable, but by local custom the buyer usually covers these:

• Recordation taxes: Virginia charges 25 cents per $100 to record the deed (based on price or assessed value, whichever is higher), and a similar state tax on the deed of trust securing your loan. Localities can add up to one-third of the state tax. Together that’s roughly 0.33% of the price on the deed and 0.33% of the loan amount on the deed of trust.
• Title insurance: a lender’s policy is required with a mortgage; an owner’s policy is optional but strongly recommended.
• Settlement or closing fee, plus title search, document preparation and courier fees.
• Lender charges: origination or underwriting fees, credit report, flood certification and any discount points you choose to buy.
• Prepaids and escrow: typically 12 months of homeowners insurance upfront, a cushion of property tax and insurance in your escrow account, and daily interest from closing to month-end.
• HOA or condo items: some associations charge a capital contribution or transfer fee to new owners; read the resale packet.

Sellers in Virginia typically pay the grantor tax, the two Northern Virginia regional transportation fees and their own costs. For more detail on the buyer side, see what buyers pay at closing in Virginia.

A worked example on a $600,000 townhouse

These figures are illustrative, rounded and not a quote. Your lender and settlement company will give you real numbers.

Item	Illustrative amount
Earnest money (2%, credited toward down payment)	$12,000
Remaining down payment (5% total = $30,000)	$18,000
Home inspection plus radon test	$750
Appraisal	$700
Recordation taxes on deed and deed of trust	$3,900
Title insurance (owner’s and lender’s)	$2,500
Settlement, title and recording fees	$1,500
Lender fees	$1,500
Prepaids and escrow (insurance, taxes, interest)	$4,500
HOA capital contribution and fees	$500
Total cash out of pocket	About $45,850
Recommended cushion (moving, reserves, first repairs)	$8,000 to $15,000

In this example, total cash needed is about 7.6% of the price before any cushion. If the buyer negotiated a $9,000 seller credit toward closing costs, the cash at closing would drop accordingly. Seller credits can’t exceed your actual closing costs and prepaids, and loan programs set caps, so check with your lender.

Ways to reduce the cash you bring

1. Ask for a seller credit, especially on homes that have been on the market a while. You may pay a slightly higher price in exchange.
2. Take a lender credit in exchange for a slightly higher rate, if you don’t plan to keep the loan long.
3. Use gift funds from an eligible relative, documented the way your loan program requires.
4. Apply for down payment or closing cost assistance through Virginia Housing or local programs if you qualify.
5. Time your closing near the end of the month to reduce prepaid daily interest (your first payment timing changes, not the total cost).
6. Shop lenders and title services. You can compare Loan Estimates and choose your own settlement company in Virginia; my lender guide explains what to compare.

Common mistakes I see

• Planning only for the down payment and being surprised by $10,000 or more in closing costs and prepaids.
• Moving money between accounts or depositing cash late in the process without documentation, which can delay underwriting.
• Forgetting that earnest money and inspection fees are due within days, not at closing.
• Draining every dollar for closing and having nothing left for the first repair, a mover or a new appliance.
• Assuming the seller will cover closing costs in a competitive situation; on the most sought-after homes, credits weaken an offer.

This is general information. Talk with your lender, and a Virginia real estate attorney or CPA if needed, about your specific situation.

Frequently asked questions

How much are closing costs for a buyer in Northern Virginia?

Buyer closing costs and prepaids often land between 2% and 4% of the purchase price, depending on loan type, rate choices, HOA fees and how much is escrowed. Your Loan Estimate gives the best early figure.

Can I buy a house in Virginia with no money down?

VA loans and some assistance programs allow little or no down payment, but you’ll still usually need cash for earnest money, inspections and part of the closing costs unless the seller or a program covers them.

Does earnest money count toward the down payment?

Yes. At closing, the earnest money held in escrow is credited toward your down payment and closing costs.

How much should I have in savings after closing?

Lenders set minimum reserves for some loans, but I suggest also keeping an emergency cushion for moving costs and early repairs. Many buyers aim for at least a few months of housing payments.