20% Down Home Loans in Washington State

Twenty percent down is the number most people grew up hearing, and it still carries a real advantage: no private mortgage insurance. What has changed is that it is no longer a requirement. It is a choice, and in a market with Seattle-area prices it is worth making deliberately rather than by default.

Here is what 20% down actually buys you, what it costs in liquidity, and how to decide whether it is the right level for your purchase.

Once your loan is at or below 80% of the home’s value, conventional financing no longer requires private mortgage insurance. That removes a line item from your monthly payment entirely, with no cancellation request, no waiting period, and no appraisal to schedule later.

On a $900,000 purchase, 20% down is $180,000 and leaves a $720,000 loan. In King County, the 2026 conforming loan limit for a one-unit property is $1,063,750, so at 20% down you can purchase up to roughly $1.33 million while staying in conforming territory rather than jumbo.

• No mortgage insurance. The clearest and most immediate effect on your payment.
• A smaller loan balance, which lowers both the payment and the total interest paid over the life of the loan.
• Equity from day one, which matters if you need flexibility to sell or refinance in the first few years.
• Offer strength. In competitive situations, a larger down payment can signal stability to a seller, particularly alongside a strong pre-approval.

Twenty percent down in this market is a large amount of cash leaving your accounts on a single day. Closing costs and prepaid items come on top of it. I have seen buyers hit 20% and close with almost nothing behind them, and that is a fragile position in a house that may need a roof, a furnace, or a sewer line.

The question is not whether 20% is good. It is whether the last five or ten percentage points are better used as a down payment than as reserves. For some buyers the answer is clearly yes. For others, putting 10% or 15% down, keeping a cushion, and removing mortgage insurance in a few years is the stronger plan.

• Buyers with reserves that remain healthy after closing
• Move-up buyers with substantial proceeds from a prior sale
• Buyers who want the simplest possible payment with no mortgage insurance component
• Buyers purchasing near the conforming limit who want to avoid jumbo guidelines
• Buyers of second homes or investment properties, where guidelines often require larger down payments regardless of preference

Waiting to reach 20% has a cost of its own in a market that does not pause while you save. Conventional financing is available at 5%, 10%, and 15% down, FHA at 3.5%, and VA and USDA with no down payment for eligible buyers. Mortgage insurance on a conventional loan is temporary and can be removed as your equity grows.

The comparison worth running is not down payment against down payment. It is the total cost of buying now with less down against the cost of buying later at a different price with more down.

Twenty percent down remains a strong position when it does not leave you thin on reserves. When it would, there are conventional structures that get you into the same home while keeping cash available and still lead to no mortgage insurance within a few years.

Start Your Pre-Approval

Program eligibility, mortgage insurance requirements, and down payment minimums are subject to investor guidelines and individual qualification. VA loans are subject to VA entitlement, eligibility, and property limits. USDA Guaranteed Rural Housing loans are subject to USDA-specific requirements and applicable income and property limits. 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.