2025 Seattle Jumbo Loans: Secure a High-Value Home with Low Down Payments

When purchasing a higher priced home, a traditional conforming mortgage may not be enough to cover the costs, which is where jumbo loans come in. A jumbo loan exceeds the conforming loan limits set by Fannie Mae and Freddie Mac, making it a necessity for some Washington homebuyers due to the states high property values.

Jumbo mortgages typically come with stricter requirements and higher qualifying standards. But in recent years, lenders have introduced options that allow buyers to secure financing with lower down payments, specifically at 5% or 10% down.

Whether you’re eyeing luxury real estate in a competitive housing market like Seattle, or simply need more borrowing power, jumbo loans can offer the flexibility and higher loan amounts needed to make your dream home a reality. However, it’s essential to understand the details below before proceeding.

In 2025, the basic conforming loan limit for single-family homes in most counties in WA sits at $806,500. However, some counties around Seattle like King, Snohomish and Pierce County, are even higher up to $1,037,300. This increase reflects rising home prices in the region, pushing more borrowers into the jumbo loan category for higher-priced homes.  Again, a jumbo loan would be any mortgage amount that exceeds these conforming loan limits.  *Please see the complete list of muti-unit property loan limits in the chart below.

5% Down Payment Jumbo Loans

For homebuyers who qualify, select lenders now offer jumbo loans up to 95% financing. This can be a game changer for buyers in a high-cost market like Seattle, where home prices are higher than average, and saving a large down payment might take years. A 5% down payment option on a million-dollar home would be around $50,000, plus closing costs, which is much more attainable than the traditional 20% down.

However, this option may come with stricter qualifications, such as higher credit scores (often 700 or higher), manageable debt-to-income ratios, and the need for adequate mortgage payment reserves.

The loan limit for this program is generally capped to $1,500,000 depending on the location (county) of the property. This program is especially popular for first-time buyers that have sufficient qualifying income but may lack huge savings.

10% Down Payment Jumbo Loans

Another popular option is the 10% down payment jumbo mortgage, which offers a middle ground between the lower down payment programs and traditional jumbo loans. A 10% down payment on a $1.5 million home would be $150,000, making it a feasible option for many Seattle buyers who have some savings but prefer to keep more liquidity for renovations or other expenses. Borrowers might have more flexibility in terms of loan size, but will still need strong credit (usually 700+), stable income, and a lower debt-to-income ratio.

Both 5% and 10% down payment jumbo loans offer the advantage of accessing larger loan amounts without the need for a huge down payment, but they can come with potential trade-offs like slightly higher interest rates and sometimes PMI​. However, new piggyback combo loan options provide a great way to offset and even eliminate these costs.

What is a Piggyback Mortgage?

A piggyback or combo loan is a type of second mortgage that is used in conjunction with a primary mortgage. It’s often used by homebuyers who are unable to put down the traditional 20% down payment required by most lenders to avoid Private Mortgage Insurance (PMI). This strategy allows the borrower to avoid PMI by using a second loan to cover part of the down payment, typically in a structure like an 80-15-5 (95%) or 80-10-10 (90%)

Here’s an example of a 90% piggyback structure:

1. First Mortgage (80%): The first mortgage covers 80% of the home’s purchase price, which is a standard loan amount for conventional financing.
2. Second Mortgage (10%): The second mortgage, which is the “piggyback” loan, covers 10% of the purchase price. This loan is usually a home equity loan or a home equity line of credit (HELOC).
3. Down Payment (10%): The buyer contributes the remaining 10% as a down payment.

By using the piggyback structure, the buyer’s down payment is reduced, and the primary mortgage is kept at 80% of the home’s value, which means there’s no need for PMI. The second mortgage usually comes with a higher interest rate than the first mortgage, and its terms can vary.

This approach allows buyers to avoid PMI, which would typically be required if the down payment is less than 20%. It can also provide a reduced interest rate on the primary first mortgage by keeping this loan at or below the conforming loan limit.

Homebuyers that want to learn more or get started can simply submit the Info Request Form below for a quick response.