2026 loan limits in Washington
Conforming (Fannie / Freddie)
$806,500 baseline · up to $1,037,300 in King, Pierce, and Snohomish
FHA loan limit
$524,225 (baseline counties)
up to $1,037,300 (King, Pierce, Snohomish) in high-cost counties
What homes actually cost
Median home price: ≈ $625,000 statewide
Roughly 24% of Washington households can afford the state median home. The gap between Puget Sound and Eastern Washington is enormous — Spokane and the Tri-Cities behave like a different state entirely.
Property taxes & insurance
Average effective property tax rate: ≈ 0.84% of assessed value
Washington has no state income tax, so schools and services lean on property tax and the real estate excise tax. Levy lid limits cap annual district revenue growth at 1% absent a voted levy, which keeps bills steadier than the price curve would suggest.
Average homeowners insurance: ≈ $1,500/year for a $400K home
Standard hazard coverage is inexpensive by national standards. The two real exposures are wildfire in Central and Eastern Washington, where some carriers have pulled back, and earthquake, which is excluded from every standard policy and must be added separately.
Down-payment assistance in Washington
WSHFC Home Advantage
Who: Buyers statewide under income limits, 620+ credit
What: A competitive first mortgage that unlocks up to 4% of the loan amount in down-payment assistance as a 0% deferred second.
WSHFC House Key Opportunity
Who: First-time buyers under tighter income and price limits
What: A below-market first mortgage pairable with targeted seconds including Home Key, Veterans, and Opportunity assistance.
Covenant Homeownership Program
Who: Washington residents (or their descendants) harmed by historic racially restrictive housing covenants, under income limits
What: Up to 20% of the purchase price, capped at $150,000, as a 0% deferred second for down payment and closing costs.
Is buying in Washington right for you?
Closing customs in Washington
Escrow companies close Washington transactions; attorneys are not required. The seller customarily pays the real estate excise tax, which is tiered and runs from 1.1% to 3.0% of the sale price, plus the owner's title policy. Buyers pay lender's title and escrow's buyer-side fee.
Frequently asked questions
Do I need a jumbo loan in Seattle?
Usually not. King, Pierce, and Snohomish counties allow high-balance conforming up to $1,037,300 in 2026, which covers the large majority of Seattle-area purchases at near-baseline pricing. Jumbo terms only start above that.
Who pays the excise tax in Washington?
The seller customarily pays the real estate excise tax, which is graduated from 1.1% up to 3.0% depending on the sale price. It is a seller cost, but it affects what a seller will net and therefore what they will accept.
What is the Covenant Homeownership Program?
It is a Washington program providing up to 20% of the purchase price (capped at $150,000) as a 0% deferred second to buyers who, or whose ancestors, were excluded from housing by racially restrictive covenants in Washington before 1968. It is one of the largest assistance amounts available anywhere in the country.
Loan programs in Washington
Related tools & guides
- The Complete First-Time Homebuyer's Readiness Guide
- How down payment assistance actually works
- FHA vs Conventional: Real cost comparison
- How much home you can actually afford
- All state homebuying guides
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