How Much Do You Need for a Down Payment in Seattle?

The honest answer to how much you need for a down payment in Seattle is: less than you have probably been told, and more than the minimum if you want a comfortable payment. Twenty percent is not required. On a typical Seattle house, though, even the low-down-payment options add up to real money, and with mortgage rates above 7% the amount you put down changes your monthly payment by hundreds of dollars.

Here are the actual numbers, what each level of down payment buys you, and how to decide.

The Minimums, by Loan Type

• 01Conventional: as little as 3% on many first-time buyer loans, with 5% to 15% more typical for other buyers. Below 20%, you pay private mortgage insurance, or PMI.
• 02FHA: as low as 3.5%, according to the Consumer Financial Protection Bureau. You pay FHA mortgage insurance regardless of how much you put down.
• 03VA: 0% for eligible veterans and service members.
• 04USDA: also 0%, but these loans are for eligible rural areas, so they do not apply inside Seattle.

Your own credit, income and debts decide what you actually qualify for, so treat these as floors rather than offers.

What That Looks Like in Dollars

Here are three real Seattle reference points from my September market update: the median Seattle condo, the median Southeast Seattle house, and the median Seattle house.

Then add closing costs, which typically run 2 to 3% of the purchase price for a buyer in Washington. On the $780,000 house, that is another $15,600 to $23,400, so a 3.5% down payment means roughly $43,000 to $51,000 in cash to close. My buying guide covers the rest of the process.

What Your Down Payment Does to the Payment

Freddie Mac's weekly average for a 30-year fixed loan was 7.24% on October 29, against 6.17% a year earlier. At that rate, here is principal and interest on the $780,000 house. Taxes, insurance and any mortgage insurance come on top.

A simple rule of thumb at this rate: every $10,000 you add to your down payment takes about $68 a month off principal and interest. The gap between 3.5% and 20% down is $877 a month, before you count mortgage insurance, which widens it further.

Your actual rate will differ with your credit, loan type and down payment, so use this to compare options, not to budget to the dollar. I worked through why rates matter so much right now in my 2027 forecast.

What Mortgage Insurance Really Costs You

Mortgage insurance protects the lender, not you, and it is the main price of a small down payment. The cost depends on your credit and loan, so get a quote from your lender rather than trusting a rule of thumb. What differs most is how you get rid of it.

On a conventional loan, PMI is temporary. Under federal law you can ask to cancel it when your balance reaches 80% of the home's original value, and it ends automatically at 78% if you are current on your payments, per the CFPB.

FHA insurance works differently. There is an upfront premium as well as a monthly one, and with less than 10% down the monthly premium generally lasts the life of the loan. The usual way out is refinancing into a conventional loan later, which depends on where rates are at the time. So FHA can be the right door in, particularly with lower credit scores, but compare the full cost against a conventional quote before you choose it.

How to Decide How Much to Put Down

There is no single right number. These are the questions I would work through with your lender.

• 01What is left in the bank after closing? Emptying your savings to reach 20% is usually a worse position than putting down less and keeping a cushion. Older Seattle houses have a way of needing a sewer line or a roof sooner than you planned.
• 02What payment can you live with? Start from the monthly number that works, then work back to the down payment that gets you there.
• 03How long will you stay? If you may sell in a few years, a large down payment ties up cash that closing costs on both ends will eat into.
• 04What else could that money do? High-interest debt is often a better first target than a larger down payment. Ask a financial or tax professional about your own situation.
• 05Could you buy now and refinance later? Possibly, if rates fall, but the forecasts do not promise that. Budget for the payment you will have today.

Where the Money Can Come From

• 01Savings, which your lender will want to document with recent statements.
• 02Gifts. Most loan programs allow gift money from family, with a signed gift letter and a paper trail. Talk to your lender before funds move, because large unexplained deposits slow an underwrite down.
• 03Down payment assistance. Washington has real programs, including a state option that lends up to 5% of your first mortgage, Seattle's program for income-qualified buyers, and the Covenant program. My first-time buyer guide covers who qualifies and how they stack.
• 04Seller credits. These cannot be your down payment, but they can help with closing costs, which frees up your cash. In a market with 3.0 months of supply and many sellers already adjusting price, it is a fair ask, particularly on a listing that has sat.

Seattle Details That Catch Buyers Out

• 01Condos. Your loan has to work for the building as well as for you. If a condo is not eligible for conventional, FHA or VA financing, you may need a much larger down payment. My condo, townhouse and house comparison explains what to check.
• 02Loan limits. King County's 2026 conforming limit for a single-family home is $1,063,750. Above that you are in jumbo territory, where lenders set their own terms and often ask for more down. The limit is usually reset each year, so check the current figure.
• 03Competing offers. A smaller down payment does not by itself lose you the house, but a seller will read your financing closely. A full pre-approval from a lender with a good local reputation does more for you than an extra few percent down. This is less of an issue on homes that have sat, as I explain in my read on whether it is a good time to buy.

The Bottom Line

You do not need 20% to buy in Seattle. You do need a clear number: the down payment, the closing costs, and the cushion you want left over. Get a pre-approval with two or three down payment scenarios side by side, and let the monthly payment decide.

If you are working out what is realistic, tell me your budget and where you want to live and I will show you what the numbers look like on real homes, and introduce you to a lender who does this every day. My free Buyer Guide covers costs, financing, and what to check before you offer.