Do You Need 20% Down to Buy a Home?
The short answer is no. While a 20% down payment eliminates mortgage insurance on conventional loans, the vast majority of first-time homebuyers put down far less. The national average down payment for first-time buyers hovers around 6–8%, and many successful home purchases happen with down payments as low as 3%.
Washington State recognizes this reality and offers multiple down payment assistance programs specifically designed to help buyers who don't have a large amount saved. These programs can bridge the gap between what you've saved and what's required to complete your purchase.
FHA 0% Down Payment Loan — Buy a Home With No Down Payment
An FHA-specific down payment loan program allows qualified buyers to finance the entire 3.5% FHA down payment through a separate loan. This covers the down payment itself — though buyers should expect to pay closing costs, the appraisal fee, and a home inspection out of pocket. Tip: If the seller offers 3% or more in credits toward buyer costs, it's possible to get into a home with very little cash out of pocket.
Unlike many state assistance programs, this option is available nationwide — not just in Washington. There are no required homebuyer education classes, and the process doesn't require a double underwrite. If you qualify for an FHA mortgage, you may qualify for this down payment loan as well.
Key advantages over state DPA programs:
- No mandatory homebuyer education course
- No double underwrite — simpler, faster process
- Available nationwide, not limited to Washington
- Works with standard FHA guidelines — credit score and income requirements apply
This is a repayable loan (not a grant) designed to pair with FHA first mortgages. Credit score and income guidelines apply.
Other Ways to Cover Your Down Payment
Beyond FHA down payment loans and state programs, common sources include gift funds from family (FHA, VA, and conventional all accept them with a gift letter), employer assistance programs, 401(k) loans, and IRA first-time buyer withdrawals (up to $10,000 penalty-free). Local government and nonprofit programs may also be available in Spokane — ask us what's current.
Quick FAQ
Usually no. Most DPA is structured as a deferred loan — you repay it when you sell, refinance, or move out. The benefit is zero monthly payments and low or no interest in the meantime.
Often yes, but there are caps on total interested-party contributions that vary by loan type. We'll walk you through what's allowed for your scenario.
Ready to Explore Down Payment Assistance?
A mortgage broker or lender familiar with Washington's down payment assistance programs can help you understand which options match your situation, income, and goals. The first step is to get pre-qualified and discuss your DPA eligibility.
Questions? Start with a consultation to learn how down payment assistance can help you buy in Washington.