Can I Buy a Home in Washington With 3% Down? What That Actually Looks Like
If you’ve been scrolling listings in Tacoma, Puyallup, Lakewood, or anywhere near JBLM and thinking, “There’s no way I can buy unless I have 20% down,” you’re not alone.
This is one of the biggest misconceptions I hear from Washington buyers — especially first-time buyers and military families.
Yes, you can buy a home in Washington with 3% down.
But what that actually looks like matters more than the headline.
Let’s break it down in a clear, honest, Washington-specific way.
1. What “3% Down” Actually Means in Washington
A 3% down payment usually refers to a conventional loan designed for first-time buyers.
Here’s what that looks like in practice:
You put 3% of the purchase price down
The loan is not FHA
You’ll have private mortgage insurance (PMI)
Credit and income matter more than the down payment itself
💡 First-time buyer in lending terms means you haven’t owned a home in the last three years — even if you’ve owned before.
2. Real Washington Price Examples (So This Feels Tangible)
Let’s use real-world Pierce County-style numbers.
Example 1: $450,000 Home
3% down = $13,500
Estimated closing costs = $9,000–$13,000
Total cash needed = $22,500–$26,500
Example 2: $525,000 Home
3% down = $15,750
Estimated closing costs = $10,000–$15,000
Total cash needed = $25,750–$30,750
👉 This is why understanding closing costs matters just as much as the down payment.
If you want a full breakdown, read:
Closing Costs Breakdown for WA Buyers
3. Credit Score Expectations for 3% Down Loans
Most Washington lenders want to see:
620 minimum (bare minimum)
660–680+ for better rates and PMI
Clean recent credit history (last 12–24 months matter most)
⚠️ A 3% down loan is less forgiving than FHA when it comes to:
Late payments
Collections
High credit utilization
This is why choosing the right lender is just as important as the loan itself.
4. Income Rules: Stable Beats High
You do not need a six-figure income.
Lenders care more about:
Consistent employment
Stable income history
Reasonable debt-to-income ratio
Washington buyers often qualify using:
Salary + overtime
Hourly income
Military BAH
Dual incomes
Side income (with documentation)
If you’re buying while selling, timing and income coordination become even more important.
Helpful read:
The Step-by-Step Move-Up Buyer Plan: How to Sell Your Current Home & Buy Your Next One Smoothly in Washington
5. PMI: The Part People Fear (But Should Understand)
Private Mortgage Insurance is not forever on conventional loans.
Typical PMI range with 3% down:
$120–$300/month, depending on credit and price
Good news:
PMI can often be removed once you hit 20% equity
Appreciation + payments can shorten that timeline in Pierce County markets
PMI isn’t “throwing money away” — it’s the trade-off that lets buyers get in sooner.
6. Can Sellers Accept 3% Down Offers in Washington?
Yes — and they do every day.
What matters more than the down payment:
Strong pre-approval
Clean financing terms
Realistic contingencies
Experienced representation
I regularly see 3% down buyers win in:
Tacoma
Puyallup
Spanaway
Lakewood
Lacey
South Hill
It’s about how the offer is structured, not just the number.
7. What Usually Catches Buyers Off Guard
Here’s where most stress comes from if buyers aren’t prepared:
Underestimating closing costs
Not budgeting for appraisal gaps
Rate changes affecting monthly payment
Choosing a lender who isn’t proactive
This is why I slow things down before you ever write an offer.
8. Is 3% Down the Right Choice for You?
It can be, if:
You want to buy sooner
You have stable income
Your credit is solid
You’re comfortable with PMI temporarily
It may not be, if:
Your credit needs repair
You’re very payment-sensitive
You have better low-down options (VA, FHA, DPA)
There’s no one-size-fits-all answer — only a smart, informed plan.
9. The Washington Buyer Truth No One Says Out Loud
Most buyers who succeed didn’t start with:
Perfect credit
Huge savings
Total confidence
They started with clear expectations and the right guidance.
That’s the difference.
Final Thought
Buying a home in Washington with 3% down is absolutely possible — but it works best when you understand the full picture, not just the headline.
If you’re thinking about buying and want to know what this would look like for your numbers, your timeline, and your comfort level, I’d love to walk through it with you.
If you’re planning a move in Washington, I’m happy to help you map out a plan that actually makes sense — no pressure, just clarity.
Written by: Lani Fisher — Washington Realtor Helping Everyday Buyers & Sellers With Confidence