First-Time Buyer Calculator: $400,000 Home
Ready to buy your first $400,000 home? Use this calculator to see your monthly payment with a conventional 5% down payment. Understand PMI costs, qualification requirements, and compare FHA vs. conventional options.
Updated for 2025. Designed for first-time buyers with moderate savings.
📊 Quick Facts for $400K Home
- ✓With 5% down ($20,000), monthly payment is approximately $2,722
- ✓PMI adds about $190/month until 20% equity reached
- ✓Conventional loan requires 620+ credit score
- ✓Total upfront costs: $28,000-$32,000 (down payment + closing)
- ✓PMI can be removed once you reach 20% equity
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5.0% of home price
Additional Costs
Your Monthly Payment
Principal & Interest
$2464.67
Loan Summary
💰 Budgeting for Your $400K Home
Purchasing a $400k home with 5% down requires $20,000 down payment plus $8,000-$12,000 in closing costs, totaling $28,000-$32,000 upfront. Your monthly payment of $2,722 includes PMI of approximately $190 which you can remove once you reach 20% equity (through appreciation or extra payments). Plan for an additional $400-500/month for maintenance, repairs, and unexpected costs. First-time buyers should maintain a 3-month emergency fund post-purchase.
Amortization Schedule
See how your payment breakdown changes over 30 years. Early payments are mostly interest; later payments build equity faster.
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📈 Market Insights: $400K Home Price Point
Conventional loans with 5-10% down are increasingly popular alternatives to FHA for first-time buyers with good credit. The $400k price point represents a competitive segment in suburban and growing markets nationwide. Unlike FHA's permanent mortgage insurance (unless you put 10%+ down), conventional PMI drops off automatically at 78% LTV or can be requested at 80% LTV, saving you thousands long-term. In 2025, conventional loan limits ($766,550 in most areas) easily accommodate this price point.
✅ Affordability & Qualification Guide
For a conventional first-time purchase at $400k with 5% down: (1) Credit score 680+ recommended for good rates (minimum 620), (2) Income around $90,000-$100,000 annually, (3) Debt-to-income ratio under 43% (ideally 36%), (4) 2-year employment history, (5) Down payment $20,000 plus closing costs, (6) 2-6 months reserves preferred. Benefits over FHA: no upfront mortgage insurance premium, lower monthly MI, MI drops off, no FHA property restrictions, slightly lower rates for good credit.
💡 Pro Tip
Use the 28/36 rule: Housing costs should be ≤28% of gross income, and total debt payments ≤36%. For this $400K home scenario, aim for these benchmarks to ensure comfortable affordability.