One of the most common questions first-time buyers ask is: “How much do I actually need saved before I start?” In a market like Boston, the answer is more nuanced than a single number — and understanding the full picture can save you from surprises at the closing table.
Down Payment: The Big Number
Most buyers focus on the down payment first, and rightly so. Here’s a realistic breakdown for 2026 Boston prices:
- 3% down (conventional loan, first-time buyers): On a $650,000 condo, that’s roughly $19,500
- 5% down (conventional, non-first-time): ~$32,500
- 10% down (stronger offer, lower PMI): ~$65,000
- 20% down (no PMI, competitive edge): ~$130,000
Boston’s median single-family price has been hovering above $700,000 in 2026, while condos in neighborhoods like South End, Back Bay, and Beacon Hill often list between $600K and $1.2M. Adjust the math accordingly for your target area.
Closing Costs: The Number People Forget
On top of the down payment, Massachusetts buyers typically pay 2%–4% of the purchase price in closing costs. On a $650,000 home, that’s an additional $13,000–$26,000. These costs include:
- Lender origination fees
- Title insurance and attorney fees (required in Massachusetts)
- Home inspection (~$500–$800)
- Prepaid property taxes and homeowner’s insurance
- Recording fees and transfer taxes
Massachusetts does not charge a state transfer tax to buyers, but some cities have local fees — always confirm with your attorney.
Earnest Money Deposit
When you sign a Purchase & Sale agreement in Massachusetts, you’ll typically put down 5% of the purchase price as an earnest money deposit. This amount later applies toward your down payment and closing costs — but you need to have it liquid and ready. In a competitive market, some sellers expect this deposit quickly after an accepted offer.
Reserves: Your Safety Net
Many lenders require you to show 2–3 months of mortgage payments in reserve after closing. This isn’t money you spend — it’s proof you won’t default if something unexpected happens. Don’t drain your account at the closing table.
So What’s the Total?
Here’s a rough estimate for a $650,000 Boston condo purchase with 5% down:
- Down payment: $32,500
- Closing costs (3%): $19,500
- Reserves (2 months at ~$3,800/mo PITI): $7,600
- Total recommended savings: ~$60,000–$65,000
That’s a real number — and it’s why working with an experienced buyer’s agent from the start matters. Knowing exactly what you need prevents you from losing deals because you weren’t financially prepared.
Down Payment Assistance Programs in Massachusetts
Don’t count yourself out if you haven’t saved $60K yet. Massachusetts has several programs that can help:
- MassHousing ONE Mortgage: Low down payment options for first-time buyers, no PMI in some cases
- MHFA Down Payment Assistance: Up to $30,000 for qualifying buyers in select communities
- City of Boston ONE+Boston Program: Below-market rates and down payment support for Boston residents
Income and property limits apply, but these programs can make a real difference for buyers entering the Boston market for the first time.
Ready to Run the Numbers for Your Situation?
Every buyer’s financial picture is different, and Boston’s neighborhoods vary widely in price point and competition level. Whether you’re saving toward your first purchase or trying to understand what’s realistic right now, having a Realtor in your corner helps you plan — not just search.
Follow @dianainrealestate on Instagram for weekly market updates, buyer tips, and real Boston real estate insight. Ready to start your home search? Reach out — let’s map out what’s possible for you.