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Are you planning to buy a home in Spokane, Washington in the near future?
Do you have questions about the down payment in Spokane, and how much you need to save?
If so, you’re in the right place. And this might be the most helpful article you ever read on the subject. If you’re wondering how to save for a house in Spokane, you’ll find what you need here. We’ll cover everything about saving for a down payment in Spokane, WA, from minimum down payments to money-saving strategies, using local pricing data for the Spokane area.
Let’s start with some good news. The “standard” 20% down payment you hear about all the time in the news? It’s rarely necessary.
The truth is that most home buyers in Spokane put down less than 20%, and sometimes as little as 3%. We process loans with these parameters on a regular basis.
News reports that talk about housing costs and affordability often use the 20% down payment for comparison purposes. And some people do choose to invest that much up front. But there’s no industry-wide mortgage rule that says you have to make a down payment of 20%.
To save for a down payment in Spokane that’s 20% of the purchase price of the home, you would have to come up with nearly $78,000 based on the average price of a home in the city. That’s a tall order for many buyers, especially for a first-time home buyer in Spokane. Fortunately, you can come up with far less and still qualify for
In the next section, we’ll look at some of the low-down-payment mortgage options available to home buyers in Spokane, Washington, including the popular FHA program.
The minimum down payment for a conventional home loan in Spokane typically ranges from 3% to 5% of the home’s value, depending on the specifics.
Similarly, the Federal Housing Administration (FHA) loan program allows for a down payment as low as 3.5%, with a credit score of 580 or higher.
Military members have it even better. Many active-duty military and veterans can qualify for a VA loan, which allows borrowers to finance the entire purchase price.
The 3% to 3.5% figures above represent the minimum down payment for most home buyers in Spokane. But let’s add two more numbers into the mix, for a broader picture:
As of late 2024, the median home value in Spokane, Washington was $389,697. Here’s what the down payment would look like at that price point, using the percentages mentioned above.
| Down Payment Percentage | Down Payment Amount ($) |
|---|---|
| 3% | $11,690 |
| 3.5% | $13,639 |
| 8% | $31,175 |
| 20% | $77,939 |
The real estate market in Spokane, WA is a healthy one, so home prices might have increased by the time you read this guide. Even so, this table illustrates the broad range that exists between minimum down payments and the 20% investment threshold discussed earlier.
More importantly, this example shows that the down payment needed for a home purchase in Spokane can be a lot less than most buyers realize. Knowledge is power!
The down payment will probably be your biggest upfront expense, when buying a home in Spokane, Washington. You can see this in the table above.
But it’s not your only expense.
Most home buyers have to pay closing costs as well, and these can also add up to thousands of dollars. So you’ll need to factor them into your budgeting and planning.
“Closing costs” is a collective term for the various fees and charges home buyers incur when buying a house. They include mortgage-related fees as well as third-party fees for title searches, escrow services, deed recording, etc.
In Spokane, Washington, closing costs for home buyers typically range from 2% to 5% of the purchase price. But the actual costs can vary depending on factors like the loan amount and specific lender fees.
Depending on the home price and other factors, the minimum down payment in Spokane might range anywhere from $10,000 to over $20,000.
Some residents might have trouble saving that much, even though they could easily afford the monthly payments associated with homeownership. This is a common challenge for home buyers, especially those buying their first home.
In such cases, gift money can come in handy.
A down payment gift occurs when a third party (who’s not involved in the transaction) provides funds to help the home buyer cover their down payment and/or closing costs. A common example is when parents give their children money to put toward their investment.
Most home loan programs allow gift money. That includes FHA, VA, and conventional mortgages. But the specific rules and acceptable sources can vary. In all cases, the person providing the funds must sign a letter stating they do not expect repayment.
This strategy gives Spokane home buyers one more way to clear the down payment hurdle.
When saving for a down payment in Spokane, WA, your first step is to create a savings goal. You can’t reach a target until you know what that target is.
You can use the information from the previous sections to estimate the upfront costs associated with a home purchase in Spokane. And remember, the down payment is only one of your expenses. You’ll likely encounter closing costs as well.
To sum up, saving for down payment in Spokane, WA takes time and savvy strategies. The good news is that if you’re looking to achieve home ownership in Spokane, WA, you can do so by adopting sound saving tactics and looking into lower down payment options.
Sammamish Mortgage offers all of the mortgage loan options mentioned in this article and serves the entire state of Washington. We can help you navigate mortgage down payment strategies in Spokane to ensure you set yourself up for approval when applying for a home loan. Please contact us to get an instant rate quote or if you need financing help to achieve your homeownership goals in Spokane, WA.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.