For those looking for their first home in Seattle, the first question that comes to mind is how much of a down payment is needed to make an offer. Whether it's a condo, townhouse, or single-family home, this question is where to start in narrowing down the types of loans available.

King County, where Seattle is located, is subject to the highest limits set by the FHFA, which is 150% of the national standard for high-cost areas. The core loan limit for 2026 is $1,063,750, significantly exceeding the national standard limit of $832,750. This limit itself serves as an indicator of the price level in the Seattle housing market. For those looking at condos, it's important to also factor in HOA fees to see the actual monthly burden. Many people are surprised by the management fee bill when they only budget based on the loan repayment amount. It's safer to calculate based on the total monthly costs in advance.

Conventional loans can start with a down payment as low as 3%. A credit score of 620 or higher is recommended, and rates improve with scores above 680. If you start with less than 20%, PMI will apply, but it can be canceled once your equity exceeds 20%.

If cash reserves are limited, considering an FHA loan may be worthwhile. With a credit score of 580 or higher, you can start with a 3.5% down payment, while a score between 500 and 579 requires a 10% down payment. However, keep in mind that if the down payment is less than 10%, the mortgage insurance premium will remain for the duration of the loan.

Properties exceeding $1,063,750, especially single-family homes in popular neighborhoods, may fall into the jumbo loan category. In this case, a credit score of 700 or higher and a down payment between 10% and 20% are often required, so it's important to factor this into your budget. Jumbo loans typically have stricter credit score and income documentation requirements than conventional loans, so if you are self-employed, organizing your tax documents in advance can help reduce the processing time. If you are considering both condos and single-family homes, remember that the structure of management fees and property taxes differs, so be sure to compare them as well. Many people are also contemplating whether to continue renting to save more funds or to enter with a down payment now. Comparing the total costs, including monthly rent, future repayment amounts, property taxes, and insurance, can aid in making a decision.

Veterans may want to look into VA loans. These can be obtained without a down payment and without PMI, but a funding fee ranging from 1.25% to 3.3% of the loan amount will apply. In a market like Seattle, where the initial financial burden is significant, this can have a particularly noticeable effect.

The USDA Rural Development loan is typically not applicable in urban areas like Seattle, as it is only available in designated rural and suburban regions. It is more realistic to exclude this option from the start.

If you are considering neighborhoods with school districts preferred by Korean families, refer to ratings from GreatSchools or Niche, but keep in mind that school district boundaries change frequently, so it's advisable to verify the assigned school for the specific address before signing a contract. There are also many families moving to Seattle from other states. Washington has no state income tax, but the burden of housing prices and property taxes may feel significantly higher than in previous residences, so budgeting based on the total costs of monthly repayments and property taxes is safer. It's common for banks and mortgage lenders to offer different terms, so it's best not to rush into a decision based solely on the conditions from the first consultation. Comparing closing costs and expected interest rates can help identify the most advantageous options.

Ultimately, how much you can save for a down payment and your credit score will determine which loan options are available to you in Seattle. This article is not investment or legal advice, and it is recommended to consult with lenders and professionals before finalizing any agreements.