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

By Barry Friedman (@barryfriedman) · Published 2026-09-25

Canonical: https://voce.com/@barryfriedman/buy-sell-seattle-low-down-payment-jumbo-strategy-la8aya

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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.

#### Key Takeaways

-   A 20% down payment is not required — low down payment jumbo loans can ask for as little as 10% down on homes above the conforming limit.
-   King County's 2026 conforming limit is $1,063,750; anything above that is a jumbo loan and opens low-down-payment options.
-   Move-up buyers can buy a new home before selling their current one using two simultaneous mortgages and a realistic DTI plan.
-   Fairway Independent Mortgage offers jumbo programs with double-digit down options under 20%, plus first-time buyer grant support.
-   The goal is simple: nobody should be left without a home between the sale of one property and the purchase of the next.

## 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](https://www.fairwayindependentmc.com/mortgage-loan-products/jumbo-mortgage-loan)) 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.

![A modern single-family home exterior in a Seattle neighborhood](https://images.unsplash.com/photo-1781832121626-9c9c831f40f7?cs=tinysrgb&fm=jpg&ixid=M3w5Mzk0NDN8MHwxfHNlYXJjaHw1fHxtb2Rlcm4lMjBsdXh1cnklMjBob21lJTIwZXh0ZXJpb3IlMjBTZWF0dGxlJTIwbmVpZ2hib3Job29kfGVufDB8MHx8fDE3OTAyNjc3ODJ8MA&ixlib=rb-4.1.0&q=80&w=1200&h=630&fit=crop&crop=entropy)