Q: Why is 20% down common for jumbo loans?
A: Jumbo lenders traditionally require 20% down to offset higher risk. With this equity, buyers avoid PMI, qualify for the strongest loan terms, and present the most competitive offers in Washington’s luxury housing markets.
20% Down Jumbo Loans in Washington State
The classic choice for jumbo financing, 20% down jumbo loans are standard for buyers of high-value homes in Washington. In areas like King County and Seattle, where luxury homes frequently exceed conforming limits, putting 20% down helps secure the strongest terms and lowest ongoing costs.
What Is a 20% Down Jumbo Loan?
A 20% down jumbo loan finances 80% of a high-value home while you contribute 20% upfront. With this equity, you avoid private mortgage insurance (PMI) entirely, maximize monthly affordability, and often secure the most favorable interest rates.
Benefits of 20% Down Jumbo Loans
- No PMI required — Save on monthly costs.
- Lowest monthly payments — Strong equity reduces principal and interest burden.
- Strongest offer appeal — Highly competitive in luxury markets.
Considerations
This option requires the largest upfront cash commitment. Buyers should ensure they still maintain healthy reserves after closing to satisfy lender requirements and preserve financial flexibility.