Washington conventional mortgage: limits, down payment math and the state rules

Washington buyers using a conventional loan face the same three questions everywhere — how much down, what it costs each month, when mortgage insurance ends — with answers that depend on the state’s $600,000 median and 0.87% effective property tax. This page works them out, then covers the Washington rules that touch the loan.

How much house stays conforming in Washington

A conventional loan is conforming when it fits Fannie Mae and Freddie Mac’s limit and their guidelines; in Washington that limit is $832,750 for a one-unit home in 2026. With 20% down, a purchase up to about $1,040,938 stays conforming; with 5% down, up to about $876,579. The state’s $600,000 median leaves ample room, so a typical purchase here is conforming unless the buyer is in a premium neighborhood. Every Washington county is in the table below; see conforming loan limits and jumbo loans.

2026 conforming loan limits by county in Washington

Loan limits in Washington run from the $832,750 baseline (36 counties) to $1,063,750 in King County, Pierce County, Snohomish County; 3 counties are above baseline in 2026. Two-, three- and four-unit limits follow the same county pattern.

Source: FHFA, Conforming Loan Limit Values for 2026 (county list, mortgages acquired in calendar year 2026). Limits are for Fannie Mae and Freddie Mac loans; FHA and VA use their own county figures.

Monthly cost on a $600,000 Washington home

The table assumes Washington’s $600,000 median, a 6.5% rate chosen for illustration, typical PMI pricing by down payment (your credit score moves it), and the state’s 0.87% effective property tax. Add insurance and HOA dues to get a full payment.

For other loan amounts and rates, the payment tables show principal and interest, total interest and the PMI break points.

How long you pay PMI here

Mortgage insurance on a conventional loan is temporary. With only the scheduled payments at 6.5%, the Washington buyer who put 5% down reaches the 80% request point after about 10 years and 4 months and the 78% automatic point after about 11 years and 3 months; with 10% down the request point comes after about 7 years and 11 months. Paying an extra $360 a month toward principal, or asking for cancellation on a new appraisal after two years of appreciation, shortens the clock. The full rules are on how to remove PMI.

The Washington closing: costs and who runs it

Washington closings run through independent escrow agents licensed by the Department of Financial Institutions under the Escrow Agent Registration Act (RCW 18.44) or through title companies, with Limited Practice Officers certified by the Supreme Court under APR 12 preparing the closing documents; attorneys are rarely involved. Washington is a dry-funding state: the parties sign first and the lender funds after reviewing the executed package, so closing and recording can fall a day or two apart. Escrow fees are usually split and run in the high hundreds to a couple of thousand dollars.

Washington levies no mortgage tax and no intangible tax on the note; the borrower pays the county auditor’s recording fee for the deed of trust, which has grown to a few hundred dollars per document because of legislative surcharges earmarked for housing programs. The real estate excise tax (RCW 82.45), a graduated tax on the deed that the seller pays, is independent of the loan. Washington’s real estate excise tax (REET) is graduated — 1.1% on the portion of the price up to about $525,000, 1.28% up to about $1.5 million, and higher above — plus a local REET of 0.25% to 0.5%. It is paid by the seller.

With REET on the seller, Washington buyer closing costs — escrow, lender’s title policy, lender fees and prepaids — typically total 2% to 3% of the price; escrow companies handle closings.

State law a conventional borrower should know

Prepayment. Washington does not ban prepayment penalties outright: the Consumer Loan Act (RCW 31.04) and the Mortgage Broker Practices Act (RCW 19.146) allow them when they are disclosed in the required state forms and consistent with the loan terms, and the federal qualified-mortgage limits cap them. The federal ability-to-repay rule caps penalties tightly and bans them on adjustable or higher-priced loans.

Spouses and title. Washington is a community property state under RCW chapter 26.16: a home acquired during marriage or a registered domestic partnership is presumed community property, and RCW 26.16.030 requires both spouses to join in any conveyance or encumbrance of community real estate, so the non-borrowing spouse signs the deed of trust.

Homestead. Since a 2021 amendment, RCW 6.13.030 sets Washington’s homestead exemption at the greater of $125,000 or the prior-year county median sale price for a single-family home, which means well above half a million dollars in King County and other Puget Sound counties; the exemption is automatic for an occupied residence.

The complete state layer — licensing, predatory-lending limits, disclosures, foreclosure — is on mortgage laws in Washington.

Frequently asked questions

What is the conforming loan limit in Washington for 2026?

It depends on the county. The 2026 baseline of $832,750 applies in 36 of Washington’s 39 counties; 3 high-cost counties carry a higher one-unit limit, up to $1,063,750 in King County, Pierce County, Snohomish County. The full county table is on this page.

When can I cancel PMI on a conventional loan in Washington?

The request point is 80% of the original value, the automatic point 78% — federal rules, identical in Washington. With 5% down on the state’s $600,000 median at 6.5%, the amortization schedule alone gets you to 80% in roughly 10 years and 4 months; with 10% down, in about 7 years and 11 months. Paying extra principal shortens both.

Does Washington add anything to a conventional loan’s closing costs?

Washington levies no mortgage tax and no intangible tax on the note; the borrower pays the county auditor’s recording fee for the deed of trust, which has grown to a few hundred dollars per document because of legislative surcharges earmarked for housing programs. Washington’s real estate excise tax (REET) is graduated — 1.1% on the portion of the price up to about $525,000, 1.28% up to about $1.5 million, and higher above — plus a local REET of 0.25% to 0.5%. With REET on the seller, Washington buyer closing costs — escrow, lender’s title policy, lender fees and prepaids — typically total 2% to 3% of the price; escrow companies handle closings.

Related: Mortgage recast: lowering the payment without refinancing, Financing a duplex, triplex or fourplex: down payment, rental income and the rules that change, Assumable mortgages: taking over a seller’s low rate, and what it really costs, How to compare mortgage offers: reading the Loan Estimate line by line. First home in Washington: programs and assistance. Hub: Conventional loan.