Financing a home in Seattle usually comes down to four choices: a conventional loan with as little as 3% down, FHA with 3.5% down, VA with 0% down for eligible veterans, or a jumbo loan once your loan tops $1,063,750, the 2026 conforming limit in King County. Down payment assistance from WSHFC and the City of Seattle can cover part of the cash you need.
I was born and raised in Seattle and have spent more than 25 years helping buyers here, from first condos on Capitol Hill to family homes in Ballard and West Seattle. This page is the starting point for everything I have written about financing a Seattle home, with the 2026 numbers that matter most.
Seattle Home Loan Options at a Glance
| Loan | Minimum down | Mortgage insurance or fee | Best for |
|---|---|---|---|
| Conventional | 3% for qualified buyers | PMI under 20% down, removable | Credit around 680+, most Seattle buyers |
| FHA | 3.5% with a 580+ score | 1.75% upfront plus 0.55% a year for most | Thinner credit or higher debt |
| VA | 0% | No mortgage insurance; 2.15% funding fee for first use, waived with VA disability compensation | Eligible veterans and service members |
| Jumbo | Often 10% to 20% | Lender-specific | Loans above $1,063,750 |
Not sure which fits? My guide to the best first home buyer loans in Seattle compares them side by side, and my Seattle mortgage rates page shows this week's sample pricing.
2026 Seattle Loan Limits and Income Figures
- Conforming loan limit (1 unit): $1,063,750 in King County. Higher limits apply to 2- to 4-unit homes, starting at $1,361,800 for a duplex.
- FHA loan limit (1 unit): $1,063,750.
- Area median income for Fannie Mae and Freddie Mac programs: $151,200, which sets the HomeReady and Home Possible cap at $120,960 and the first-time buyer fee-waiver cap at $181,440.
- HUD median family income (WSHFC and City of Seattle programs): $164,400.
Down Payment Help for Seattle Buyers
Seattle buyers have more assistance available than most realize. WSHFC's Home Advantage adds 3% to 5% of the loan at 0% interest, deferred until you sell or refinance, for household incomes up to $215,000. The City of Seattle offers up to $76,000 for first-time buyers earning under 80% of area median income, through partners like HomeSight. Neither is a grant, and both require a homebuyer class. Details are in my 1st time home buyer programs guide and Seattle down payment guide.
SEATTLE DOWN PAYMENT CALCULATOR
How much cash do you actually need to buy?
Enter a price and see the down payment and estimated cash to close for every common loan option in King, Snohomish, and Pierce counties.
Seattle Neighborhood Mortgage Guides
Financing looks different in a Capitol Hill condo than in a Laurelhurst view home. Start with my Seattle neighborhood mortgage guides, or go straight to West Seattle, Queen Anne, or Green Lake. Buying on the Eastside or to the north? See the Bellevue, Kirkland, and Redmond guides, King County home loans, and Snohomish County home loans.
Seattle Financing Guides by Topic
- First-time buyers: step-by-step guide, assistance programs, FHA for first-time buyers, homebuyer courses
- Down payment: Seattle down payment guide, 5% down conventional, down payment comparison
- Higher-priced homes: jumbo loans, 10% down jumbo, 20% down jumbo
- Tech compensation: how RSUs impact mortgage approval
- Self-employed and investors: bank statement loans, DSCR loans for rentals
- Payment planning: Seattle mortgage calculator (taxes, insurance, PMI and HOA included)
- Veterans: VA home loans, VA refinance
- The process: mortgage loan process, using a 9-day close to negotiate, understanding mortgage fees
- Owners and investors: refinancing, investment property loans, is it a good time to buy in Seattle
- Real estate agents: how I back your buyer's offer and keep you updated
Steps to Finance a Home in Seattle
- Get fully pre-approved. In Seattle's multiple-offer neighborhoods, a pre-approval backed by real documents matters. With complete documents I can often turn one around within 24 hours.
- Pick your loan and down payment. Weigh monthly payment, mortgage insurance, and the cash you want to keep.
- Line up assistance early if you are using WSHFC or City of Seattle help, since funds are reserved through a participating lender.
- Make your offer. My team closes in 9 business days, which helps your offer compete.
- Inspection, appraisal, and underwriting. Keep your finances steady until closing.
- Close with escrow and get your keys. In Washington, the seller pays the real estate excise tax.
VA disclaimer: Borrowers with full VA entitlement have no VA loan limit. A down payment may be required with partial entitlement when the loan exceeds the county limit ($1,063,750 in King County for 2026). VA loans are subject to entitlement, eligibility, and qualifying factors such as income, credit, and property requirements.
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Financing a Home in Seattle: FAQs
How much do I need to put down to buy a home in Seattle?
As little as 3% with a conventional loan for qualified buyers, 3.5% with FHA, or 0% with VA for eligible veterans. Jumbo loans above $1,063,750 typically need 10% to 20%. Plan separately for closing costs, which typically run 2% to 4% of the price including prepaid taxes and insurance.
What is the conforming loan limit in Seattle for 2026?
$1,063,750 for a one-unit home in King County, which is also the 2026 FHA limit. Loans above that are jumbo loans with lender-specific rules.
Is there down payment assistance in Seattle?
Yes. WSHFC's Home Advantage provides 3% to 5% of the loan at 0% interest, deferred, for incomes up to $215,000, and the City of Seattle offers up to $76,000 for first-time buyers under 80% of area median income. Both are deferred loans, not grants, and are subject to funding and approval.
Which loan is best for a first-time buyer in Seattle?
It depends on your credit, savings, and income. Conventional usually costs less over time for scores around 680 or higher because PMI can be removed, FHA is easier to qualify for with lower scores, and VA is hard to beat for eligible veterans. Compare them on actual Loan Estimates.
Can tech employees count RSUs to buy a home in Seattle?
Yes, once the shares have vested and been paid out. Under Fannie Mae's current rules, time-based RSUs need at least 12 months of history with your current employer, averaged over 24 months at the stock's 200-day moving average price.
How long does it take to close on a Seattle home?
Most purchases close in about 30 days after an accepted offer. With complete documents and a straightforward property, my team closes in 9 business days, which can help you win in a competitive Seattle neighborhood.
Let's connect. Call or text (206) 601-3426, email keith@mortgagereel.com, start your application, or book a time to talk. I will lay out every Seattle financing option side by side, pressure-free.