10% Down Conventional Home Loans in Washington State

Ten percent down sits in a useful middle ground. It costs less upfront than 20%, and it prices better than 5% because your mortgage insurance is calculated on a smaller share of the home’s value. For a lot of Puget Sound buyers, it is the point where the math starts to feel balanced.

Here is how a 10% down conventional loan works, what it changes about your monthly payment, and when I recommend it over the alternatives.

A conventional loan follows Fannie Mae and Freddie Mac guidelines rather than being insured by a government agency. With 10% down, you finance 90% of the purchase price. On an $800,000 home, that is $80,000 down and a $720,000 loan.

In King County, the 2026 conforming loan limit for a one-unit property is $1,063,750. At 10% down, that supports a purchase price of roughly $1.18 million before you move into jumbo territory, which is why this down payment level covers a large share of the local market.

Conventional loans require private mortgage insurance whenever you finance more than 80% of the value. PMI pricing is tiered by loan-to-value, and 90% is a materially better tier than 95%. Moving from 5% down to 10% down usually lowers the PMI rate itself, not just the loan balance it is charged against.

PMI comes off. You can request cancellation at 80% of original value, and it terminates automatically at 78% on a primary residence when the loan is current. Starting at 90% loan-to-value means you are already halfway to that threshold on day one.

Ask to see monthly PMI, single-premium, and lender-paid options priced out together. At 10% down the gap between these structures narrows, and the cheapest choice depends heavily on how long you plan to keep the loan.

• Buyers who have more than 5% saved but do not want to empty their accounts to reach 20%
• Move-up buyers applying proceeds from a prior sale toward a larger purchase
• Tech and equity-compensated buyers timing a vest or a stock sale against a closing date
• Buyers purchasing a two-unit primary residence, where conventional guidelines require at least 15% down and 10% will not be enough
• Buyers who want reserves left over for renovations, furnishings, or simple peace of mind

Versus 5% down

The extra 5% buys you a lower loan balance and better mortgage insurance pricing. On a Seattle-area purchase, that combination often changes the monthly payment by a meaningful amount. Whether it is worth the additional cash depends on what that cash would otherwise be doing.

Versus 20% down

Twenty percent removes PMI entirely. Ten percent keeps roughly a hundred thousand dollars of liquidity available on a typical local purchase. Some buyers value the clean payment. Others value the reserves. Both positions are defensible, and the right answer is personal rather than universal.

Versus FHA

FHA allows 3.5% down and is more flexible on credit, but its mortgage insurance generally stays for the life of the loan. If your credit supports conventional financing, 10% down usually produces a lower long-run cost.

Ten percent down is often the option that gives buyers most of the benefit of a larger down payment without the wait required to reach 20%. The right structure depends on your credit, your timeline, and what else your cash needs to do.

Start Your Pre-Approval

Private mortgage insurance requirements, cancellation terms, and program eligibility are subject to investor guidelines and individual qualification. Loan limits shown reflect 2026 King County, WA one-unit conforming limits. Example figures are illustrative. All loans subject to credit and property approval. Not all applicants will qualify.