Cash to close is the dollar figure you bring to closing, usually by wire or cashier's check. It adds the down payment, closing costs and prepaids, then subtracts what you've already paid and what others are paying for you. Your Loan Estimate shows an estimate on page 1, with the math on page 2, and the Closing Disclosure you get before signing shows the final number.
What goes in and what comes off
| Adds to cash to close | Comes off cash to close |
|---|---|
| Down payment | Earnest money deposit already paid |
| Closing costs: lender, appraisal, title, settlement, recording, Florida taxes on the loan | Seller credit toward your costs |
| Prepaids: first year of insurance, prepaid interest, escrow deposit | Seller's share of the year's property taxes |
| Gifts and down payment assistance applied at closing |
The down payment depends on the program: 3.5% on FHA from a 580 score, $0 on VA and USDA, and 3% on a Conventional single-family home through first-time buyer programs. Seller credits are capped at 6% of the price on FHA and USDA. Conventional allows 3% with less than 10% down. VA lets the seller pay normal closing costs plus up to 4% of value in concessions.
A Conventional example on a $300,000 home
A buyer puts 3% down on a $300,000 single-family home, a $291,000 loan at a 5.75% rate. Taxes run 0.95% of the price a year and insurance is $283 a month. The seller agrees to a 3% credit, the buyer put down a $3,000 deposit, and the seller owes five months of the year's taxes.
| Item | Amount |
|---|---|
| Down payment (3%) | $9,000.00 |
| Lender, appraisal, title, settlement and recording fees (estimate) | $5,200.00 |
| Florida doc stamps on the note ($0.35 per $100) | $1,018.50 |
| Florida intangible tax (0.2%) | $582.00 |
| First year of insurance ($283 × 12) | $3,396.00 |
| Escrow deposit (3 months of taxes, 2 of insurance) | $1,278.50 |
| Prepaid interest (15 days) | $687.64 |
| Total before credits | $21,162.64 |
| Earnest money deposit | minus $3,000.00 |
| Seller credit (3% of $300,000) | minus $9,000.00 |
| Property tax proration (5 × $237.50) | minus $1,187.50 |
| Cash to close | $7,975.14 |
The seller credit has to stay under the $12,162.64 of closing costs and prepaids, and $9,000 does. On a Conventional single-family home the buyer will live in, a family gift can cover the whole $7,975.14.
Bringing the number down
- Ask for a seller credit sized to your real costs, inside your program's cap.
- Use a gift from family, with a signed gift letter and a paper trail.
- Look at FHA 100% financing, where a down payment assistance second covers the 3.5%.
- Close late in the month to shrink prepaid interest.
Have the money in an account you can document, because lenders verify where it came from before closing. The cash to close calculator builds this table for any price, and AAA Capital Funding at 888-601-8344 can tell you what to ask the seller for before you write the offer.