Saving for a home is more achievable when you can see exactly what you need and when you’ll get there. Enter your target home price, down payment type, current savings, and monthly savings capacity — the planner shows your goal, your gap, and your timeline.
What’s Included in “Total Cash Needed”
Down payment is the portion you pay at closing that doesn’t come from the mortgage.
Closing costs are estimated at 3% of the purchase price — typical for Alabama. For a more precise figure, use the Closing Cost Estimator.
Cash reserve is the 1–2 months of mortgage payments most lenders want to see in your account after closing. Lenders verify this during underwriting — don’t plan to drain every dollar to close.
Ways to Reach Your Goal Faster
High-Yield Savings Account (HYSA): Current rates of 4–5% APY meaningfully accelerate savings compared to a standard checking or savings account. The calculator uses the rate you enter to model compound growth.
AHFA Step Up Program: If your down payment type is under 5%, Alabama’s Step Up program may provide down payment assistance as a second mortgage. See the AHFA Programs Guide for current limits. Income and purchase price caps apply.
VA Loan: Eligible veterans and active service members can purchase with no down payment. If you qualify, your total cash needed drops to closing costs and reserve only.
USDA Rural Development: Zero down payment for eligible properties in designated rural areas. Parts of Baldwin and Mobile County qualify. Verify eligibility at rd.usda.gov.
Gift Funds: Conventional and FHA loans allow down payment gift funds from family members, subject to documentation requirements. Discuss with your lender before assuming gift funds will be accepted for your specific loan program.
This planner provides estimates for goal-setting and educational purposes only. Actual closing cost requirements depend on your specific lender, loan type, and transaction. Consult a licensed Alabama mortgage lender for an actual pre-approval and exact cash-to-close requirements. AHFA program terms, income limits, and purchase price caps change — verify current requirements at ahfa.com.
Closer to your goal than you think?
AHFA programs, naf Cash options, and seller concessions can all change the cash you actually need to close. If you're within 12 months of your savings goal, let's talk — there may be a path to homeownership sooner than the calculator suggests.
Get in Touch →Milton Christ, REALTOR® | naf Cash Certified | Keller Williams Alabama Gulf Coast | AL License #172097
