Key takeaways
If you rent in Seattle, Tacoma, Bellevue, or anywhere across King, Pierce, Snohomish, or Kitsap County, homeownership can feel out of reach. It's often closer than you think.
The Joseph Group manages nearly 2,000 rental homes across the Puget Sound region, so we talk with renters every day who want to own. In our "Pathway to Home Ownership" webinar, we brought in two trusted partners, local agent Nick Taitano and lender Adrian Webb, to answer the questions first-time buyers ask most.
For many Puget Sound renters, buying builds more wealth over time than renting. Rent in the region tends to rise year after year, while a fixed-rate mortgage payment stays the same. Each mortgage payment also pays down your loan, so part of your housing cost builds equity you own.
Buying can cost more at first. Over several years, rising rent often makes owning the better deal.
Real estate also gives you leverage. With a small down payment, you control a much larger asset. If the home appreciates, your gain is based on its full value, not just what you put down.
Most first-time buyers in Washington need far less than 20% down. Depending on the loan program, the minimum can be as low as 1% to 3.5%. VA loans for eligible veterans, including many in the Joint Base Lewis-McChord and Kitsap communities, may require no down payment at all.
Putting 20% down on a conventional loan lets you avoid private mortgage insurance, but it isn't required to buy a home.
You can buy a home with a credit score as low as 580 using an FHA loan. Conventional loans typically require higher scores, but "perfect credit" isn't necessary for any major loan type.
If your score needs work, a lender can show you which steps will have the biggest impact before you apply.
Lenders evaluate four factors, known as the four C's of credit:
Yes. Self-employed buyers can qualify through bank statement loans or 1099 loan programs. These verify income using your bank deposits or 1099 forms instead of W-2s. They're a good fit for the many contractors, gig workers, and small business owners across the Puget Sound area.
A 2-1 buydown lowers your mortgage rate by 2% in year one and 1% in year two, then returns to the full rate in year three. The seller typically pays for it through closing credits, making your first two years of payments easier.
Yes. Many buyers purchase a home before their lease ends and pay a fee to break it. The Joseph Group's lease-break assistance provides a $5,000 closing credit to offset that cost, so an active lease doesn't hold up your purchase.
A thorough pre-approval makes your offer stronger in competitive markets. Puget Sound sellers are more likely to accept offers backed by a lender who has fully reviewed your income, assets, and credit.
Adrian cautions against what he calls the "big bank strategy," where a pre-approval is issued without a full financial review. Problems found late in the process can cost you the home.
Look for a lender who:
Do you need 20% down to buy a house in Washington?
No. Many loan programs allow much smaller down payments, some as low as 1%.
What is the minimum credit score to buy a house?
FHA loans allow credit scores as low as 580. Conventional loans usually require higher scores.
What are the four C's of mortgage qualification?
Credit, capacity, capital, and collateral.
Can I buy a house in Seattle if I'm self-employed?
Yes. Bank statement and 1099 loan programs are designed for self-employed borrowers.
Can I break my lease to buy a house?
Yes. The Joseph Group's lease-break program provides a $5,000 closing credit to help cover the cost.
What is a 2-1 buydown?
A seller-funded program that lowers your interest rate by 2% in year one and 1% in year two.