10% Down Conventional Loans
For many homebuyers, a 10% down conventional loan strikes the right balance between affordability and long-term financial stability. While it requires more upfront savings than low down payment programs, it often offers better monthly terms and reduced mortgage insurance compared to smaller down payments. In Washington State, 10% down conventional loans are a popular choice for move-up buyers and those seeking flexibility.
What Is a 10% Down Conventional Loan?
A 10% down conventional loan is a mortgage where you contribute 10% of the home’s purchase price at closing. The remaining 90% is financed through the lender. This middle-ground option provides a strong starting equity position while keeping upfront costs lower than a 20% down payment.
Private mortgage insurance (PMI) is typically required with less than 20% down. However, at 10% down, PMI costs are generally lower than with 3% or 5% down loans, and PMI can be canceled once sufficient equity is built.
Benefits of 10% Down Conventional Loans
- Lower PMI costs compared to smaller down payments.
- Faster equity growth with 10% already invested.
- More competitive offers in markets like Seattle and Bellevue.
- Flexibility to remove PMI once 20% equity is reached.
Who Should Consider 10% Down?
This option is well-suited for buyers who have moderate savings but want to keep some cash available for renovations, reserves, or other priorities. It’s especially popular among Washington buyers who want better loan terms than 3%–5% down but don’t want to wait to save the full 20%.
With a 10% down conventional loan, Washington buyers can achieve a strong balance of affordability, competitive loan terms, and manageable upfront costs.