Buy Before You Sell: The Seattle Low-Down payment Jumbo Strategy

In King County, Washington, the average home now fetches $835,385, down just 2.0% from a year ago (Zillow), while Seattle proper sits at $833,192. For a first-time buyer, that math lands on a familiar wall: a 20% down payment on even an average home is $167,000 in cash — before closing costs. But that 20% requirement is a myth for loans above the conforming limit. A low-down payment jumbo loan lets qualified Seattle buyers purchase a new home with as little as 10.1% down and ZERO mortgage insurance — and, for some move-up buyers, do it before selling their current house, breaking the long-standing Catch-22 that traps sellers who need their equity to buy.

The 10.1% Solution: A Jumbo Loan for First-Time Buyers

Here is the myth that keeps qualified Seattle buyers on the sidelines: jumbo loans — home loans above the conforming limit — require 20% down. In reality, Fairway Independent Mortgage offers a core jumbo program with down payments as low as 10.1% for a primary residence (Fairway Independent Mortgage) using standard 30-year fixed financing for the entire loan balance. That can put a $1 million-plus home within reach for a buyer who hasn't had the time to save for a 20% down payment.

On purchase of $1,300,000, a traditional 20% down payment means pulling $260,000 in cash out of savings — before closing costs, escrows (property taxes and insurance), inspection fee, or moving truck. Drop the requirement to 10.1% (with zero mortgage insurance) and that cash need is cut roughly in half, to about $131,300. For many home buyers, that is the difference between buying now and renting another year while the market climbs.

The 10.1% down payment number matters most to the move-up buyer whose down payment is still locked in their current home. In this market, the pricey Seattle neighborhoods where million-dollar homes sit near the top of the low-down jumbo range are exactly where a contingent offer — one that requires selling your current house first — gets pushed aside by a cash-strong or non-contingent bid. A low-down payment jumbo loan lets you buy the new million-dollar home first and then sell your departure home on your own timeline instead of being forced into a rushed, lower-price sale.

A low-down jumbo works like a standard mortgage with two twists. First, the loan amount is higher than what Fannie Mae and Freddie Mac will purchase as a conforming loan — in King County, the 2026 limit is $1,063,750 (Fairway Independent Mortgage). Second, because the lender is not bound by the 20%-down conformity rule, it can underwrite a smaller down payment when your income, credit, and assets support it. The trade-off can be a slightly higher rate, which a loan officer can walk you through on your specific numbers.