At Seattle's median home price of ~$850,000, a 10% down payment means bringing $85,000 to the table. That's a significant sum, but it unlocks meaningful benefits: lower PMI rates, a smaller loan balance, and the ability to finance homes up to about $1.15 million while staying within conforming loan limits.
The 10% Down Sweet Spot
For buyers with good credit, 10% down often represents the best balance between cash preservation and monthly cost reduction. Here's why:
- PMI drops sharply: Moving from 95% to 90% LTV cuts PMI rates roughly in half for most credit profiles
- No income restrictions: Unlike 3% down programs, there are no AMI caps
- Stronger offers: Sellers and their agents view 10% down buyers as well-qualified
- Faster equity: You're only 10% away from the 80% LTV threshold where PMI disappears
Down Payment Numbers for Seattle
| Home Price | 10% Down | Loan Amount |
|---|---|---|
| $750,000 | $75,000 | $675,000 |
| $900,000 | $90,000 | $810,000 |
| $1,100,000 | $110,000 | $990,000 |
PMI at 90% LTV
PMI costs at 10% down are significantly lower than at 3% or 5% down. For a buyer with a 740 credit score on an $810,000 loan:
- At 97% LTV (3% down): ~$540/month PMI
- At 95% LTV (5% down): ~$390/month PMI
- At 90% LTV (10% down): ~$200/month PMI
That's a $340/month savings compared to 3% down, and $190/month savings compared to 5% down. Over the time it takes to build 20% equity, those savings can add up to $15,000-$25,000.
Conforming Loan Limit Math
King County's 2026 conforming loan limit is $1,063,750. With 10% down, you can purchase a home up to approximately $1,181,944 before crossing into jumbo territory:
$1,063,750 รท 0.90 = $1,181,944 max purchase price
This gives you room to shop in premium Seattle neighborhoods like Eastlake, Capitol Hill, and Wallingford while still enjoying conforming loan benefits: easier qualification, standardized underwriting, and competitive rates.
Reaching 80% Equity
Starting at 90% LTV, you only need to pay down 10% of the home's value (or see 10% appreciation) to remove PMI. In Seattle's market, where annual appreciation has historically averaged 5-7%:
- With 5% appreciation: ~2 years to hit 80% LTV
- With 3% appreciation: ~3-4 years to hit 80% LTV
- With principal payments only: ~6-7 years on a 30-year term
You can request a new appraisal once you believe your home has reached 20% equity. If confirmed, your servicer must remove PMI.
Credit Score Impact on PMI
At 10% down, credit score differences have a smaller impact on PMI than at lower down payments, but they still matter:
| Credit Score | Est. PMI Rate | Monthly PMI ($810K loan) |
|---|---|---|
| 760+ | 0.19% | $128 |
| 720-759 | 0.30% | $203 |
| 680-719 | 0.52% | $351 |
| 640-679 | 0.78% | $527 |
When 10% Down Makes Sense
- You've saved aggressively and can comfortably put down $80K-$110K while keeping reserves
- You want the lowest practical PMI without going all the way to 20%
- You're buying in the $1M-$1.15M range and need to stay within conforming limits
- You plan to stay in the home long enough to benefit from PMI removal
When to Consider Alternatives
- Tight on cash? 5% down frees up $40K+ for closing costs and reserves
- Buying above $1.15M? You'll need a jumbo loan regardless
- Have 20% saved? Skip PMI entirely
- VA eligible? VA loans offer 0% down with no PMI
Calculate Your Scenario
Julie can run the numbers for your specific situation, comparing monthly payments and total costs at 10% versus other down payment levels. The right choice depends on your cash reserves, timeline, and how long you plan to stay in the home.
Call (206) 778-5825 or send a message to get started.