To secure a new home in Seattle, buyers typically use conventional loans, FHA loans, or VA loans. Conventional loans require a 20% down payment but offer lower interest rates. FHA loans need only 3.5% down, ideal for first-time buyers. VA loans offer zero-down options for veterans. Additionally, Seattle offers down payment assistance programs, such as the Seattle Housing Bond, which provides up to $125,000 for eligible buyers. Rent-to-own agreements and crowdfunding platforms are also viable alternatives.

Seattle’s median home price was $740,000 in 2023, making down payment assistance critical for affordability. The Seattle Housing Element allocated $125,000 in 2022 to help low- and moderate-income buyers, covering up to 30% of a home’s cost. FHA loans, with their 3.5% down requirement, enabled 22% of first-time buyers in King County to purchase homes in 2022, per the National Association of Realtors. VA loans, used by 12% of Seattle buyers in 2023, saved veterans an average of $150,000 in down payments. High interest rates (over 7% in 2023) have increased mortgage costs, but rent-to-own agreements helped 15% of buyers avoid immediate affordability issues, according to Zillow. These strategies address Seattle’s unique challenges, combining traditional financing with local support to bridge the gap between income and home prices.