You Don’t Need 20% Down in Washington — Here’s What You Actually Need

If you’ve been putting off buying a home because you think you need 20% down, you’re in good company — and you’re also working from bad information. Nationally, 39% of people believe a 20% down payment is required to buy a home, and only 23% even know that low-down-payment programs exist. In Washington, that misunderstanding is costing buyers time they don’t need to lose.

Here’s the reality: most loan programs never required 20% down in the first place. Conventional loans can go as low as 3%, FHA loans start at 3.5%, and VA loans can go to 0% down for eligible veterans and service members. The 20% number persists mostly because it’s the threshold where private mortgage insurance (PMI) drops off — not because it’s a requirement to get a loan.

Washington has its own down payment assistance program

This is where it gets genuinely useful for buyers in our area, and it’s a detail most national advice columns will never mention: Washington’s Home Advantage program offers 3–5% down payment assistance structured as a 0% interest, deferred second mortgage over 30 years. That means no monthly payment on the assistance itself — it’s repaid when you sell, refinance, or pay off the first mortgage.

A few things surprise people about Home Advantage:

It is not limited to first-time buyers, despite what the name might suggest to some. And the household income limit sits at $215,000 — far higher than most people assume, which means a lot of buyers who’ve ruled themselves out on income grounds are actually still eligible.

Only 23% of prospective buyers know low-down-payment programs exist at all. If you didn’t know about Home Advantage before reading this, you’re the majority — not the exception.

What this means if you’re thinking about buying in South King County

If a 20% down payment has been the thing standing between you and a serious conversation about buying, it’s worth revisiting the math with real numbers instead of the round number everyone assumes is correct. Down payment assistance programs like Home Advantage exist specifically to close that gap, and eligibility is broader than most people expect.

I work with buyers throughout Federal Way, Renton, and the rest of South King County, and this is one of the first conversations I have with anyone who tells me they’re “not ready yet” because of the down payment. Often, they’re closer than they think.

If you want to find out where you actually stand — not where the 20% myth says you stand — I’m happy to walk through it with you, no pressure and no obligation. Reach out and let’s talk about what’s realistic for your situation.