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How much is the typical down payment amount for a home purchase in Seattle? We’ve crunched the numbers to help you determine how much you need to secure a mortgage in 2021.
Unless you are qualified to take out a VA loan, a down payment will be required to secure a mortgage to buy a home in Seattle. The question is, how much of a down payment do you need to make for an average-price home in the city?
This is one of the most common questions among home buyers, especially in relatively high-priced housing markets like Seattle. Today, we’ll run some numbers to figure out what the typical down payment would be in Seattle, Washington for different loan types.
According to a recent analysis by ATTOM Data Solutions, the median down payment among home buyers in the U.S. is somewhere around 6.6% of the purchase price.
It’s possible to put down less than that. Some mortgage programs allow for down payments in the 3% range (or 0% for military folks). But we’re trying to determine the typical or average down payment in Seattle, so the 6.6% median figure is a good place to start.
Related: Low down payment mortgage loans
Down payment percentages are based on the home price. So, a more expensive property will result in a larger upfront investment, with all other things being equal. But for the sake of this analysis, let’s stick with the “median” theme for house values.
Clearly, there are a lot of variables that go into the mix. So, the closest we can come to an average down payment for a typical home purchase in Seattle is somewhere around $53,097 as of early 2021. But some borrowers put down much less than that by using a mortgage program with a lower investment requirement.
Did you know it’s possible to use gift money from a family member or close friend to help cover your down payment expense? It’s true. Most of the major mortgage loan products available today allow borrowers to use funds gifted from an approved third party.
This kind of strategy is especially helpful in higher-priced real estate markets like Seattle, where a lot of buyers need down payment help to make a purchase.
Another common question among Seattle home buyers is: Should I buy now or wait a while? What’s the best time to make a purchase?
As we’ve reported in the past, the latest forecasts for the Seattle-area real estate market predict that home prices will continue to rise over the coming months. And mortgage rates could inch upward as well, due to economic growth and policy adjustments made by the Federal Reserve (among other factors).
So those home buyers who postpone their purchases might end up encountering higher housing costs.
Median and average down payment data are useful from a market analysis perspective. But they’re not as helpful for individual borrowers. At Sammamish Mortgage, can help you secure a mortgage program, as we have been doing for the past 28 years in Washington, Colorado, Idaho, and Oregon. We currently lend in all of Washington, Oregon, Idaho, and Colorado. Please contact us if you’d like to know what your down payment might be when buying a house.
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