15% Down Conventional Home Loans in Washington State

Fifteen percent down is the level most buyers skip past without looking at it, and it deserves more attention than it gets. It is close enough to 20% that the mortgage insurance cost becomes small, while still leaving a real cushion of cash in the bank.

It is also the minimum down payment conventional guidelines allow on a two-unit primary residence, which makes it the starting point for buyers considering a duplex in Seattle or the surrounding communities.

With 15% down you finance 85% of the purchase price. On a $900,000 home, that is $135,000 down and a $765,000 loan. Because the loan exceeds 80% of value, private mortgage insurance applies, but at the lowest and least expensive tier before PMI disappears entirely.

In King County, the 2026 conforming loan limit for a one-unit property is $1,063,750. At 15% down, that limit supports a purchase price of about $1.25 million before jumbo financing enters the picture.

Mortgage insurance is priced in loan-to-value bands. The 85% band is the cheapest one that still carries PMI, and the difference between it and the 95% band is not marginal. Buyers are often surprised at how little the coverage costs at this level.

You also start much closer to the finish line. PMI can be cancelled on request at 80% of original value and terminates automatically at 78% on a primary residence when payments are current. Beginning at 85% means a relatively short window before that becomes available, and in an appreciating market a new appraisal can sometimes accelerate it under investor guidelines.

Conventional guidelines require a minimum of 15% down on a two-unit property that you occupy as your primary residence. If you are considering a duplex, whether in Ballard, Capitol Hill, or further north, this is the entry point rather than an optional middle tier.

Rental income from the second unit may be usable toward qualifying, subject to documentation and investor rules. That combination, owner occupancy plus qualifying rental income at 15% down, is one of the more effective ways buyers in this market get into a property that partly pays for itself.

• Buyers who could reach 20% but would rather not spend every dollar of savings to do it
• Move-up buyers whose sale proceeds land between the 10% and 20% marks
• Duplex buyers meeting the two-unit minimum
• Buyers planning renovations who want funds available after closing
• Equity-compensated buyers who prefer to keep vested shares invested rather than liquidate more of them

Versus 10% down

The additional 5% lowers both the loan balance and the mortgage insurance rate, and it shortens the time to PMI removal. For buyers who have the funds available, it is usually the more efficient of the two.

Versus 20% down

Twenty percent eliminates PMI. Fifteen percent keeps a meaningful reserve intact for a small monthly cost that comes off within a few years. If liquidity matters to you, that trade is often worth making.

Fifteen percent down gives you most of the benefit of a large down payment while keeping cash where you can reach it. For duplex buyers, it is also the door into owner-occupied multifamily financing.

Start Your Pre-Approval

Private mortgage insurance requirements, cancellation terms, rental income treatment, 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.