20% Down Conventional Home Loans
A 20% down conventional loan is the gold standard in mortgage financing. By contributing one-fifth of the home’s purchase price upfront, buyers avoid private mortgage insurance (PMI) entirely and benefit from stronger loan terms. In Washington, 20% down loans are common among repeat buyers, move-up homeowners, and those seeking maximum long-term affordability.
What Is a 20% Down Conventional Loan?
With a 20% down conventional loan, buyers contribute a substantial equity stake upfront. This allows lenders to offer favorable terms since the loan carries less risk. Because no PMI is required, monthly payments are significantly lower compared to smaller down payment programs.
For buyers in competitive markets like Seattle or Bellevue, a 20% down payment can also strengthen offers and make them more appealing to sellers.
Benefits of 20% Down Conventional Loans
- No PMI — Eliminates the extra cost entirely.
- Lower monthly payments — Financing less reduces total obligations.
- Immediate equity — Provides strong financial stability.
- Competitive offers — Sellers often favor buyers with higher down payments.
Who Should Consider 20% Down?
Ideal for buyers with substantial savings, 20% down is a strong choice for long-term homeowners, real estate investors, and those prioritizing financial security. In Washington’s higher-cost counties, 20% down is often the preferred option for established professionals and families purchasing move-up or luxury homes.
A 20% down conventional loan remains the most financially efficient choice for many Washington buyers. With no PMI, lower monthly costs, and strong equity, it provides unmatched long-term stability.