Washington State · State guide
How to buy a house in Washington
An expensive, tech-driven state (the state, not DC) with unusually generous down payment help and no income tax — set against one hidden risk most buyers overlook: the Cascadia earthquake. Here is the playbook for buying in the Evergreen State.
Last updated June 2026
Why Washington is different
Buying a house in Washington, the short version
The federal process is the same everywhere — read the complete guide to buying a house for the eight universal steps — but Washington has its own programs, taxes, and closing rules worth knowing before you start.
The picture: Washington is expensive (a statewide median around $650,000, one of the higher states; Seattle and the Eastside are among the priciest in the country, while Spokane and Eastern Washington are far cheaper). The state agency, WSHFC, offers below-market loans plus one of the deepest menus of down payment help in the US.
Two big wins: no state income tax, and property taxes are moderate (capped at 1% growth a year). Closings run through an escrow company. The catch most buyers miss: the Cascadia fault can produce a magnitude-9 quake, and earthquake coverage is separate. Use the 50-state hub to compare other states.
The market
What homes cost in Washington
Expensive, but cooling with more choice for buyers.
The statewide median sale price was about $650,000 in spring 2026 (NWMLS), down around 3% year over year, with active listings up ~16% — the most buyer-friendly conditions in years. No income tax and the tech economy keep long-term demand strong. Prices vary enormously by area:
Median prices by area
The Eastside (Bellevue, Redmond) ~$1.5M–$1.8M · King County (Seattle) ~$875K, Seattle city ~$820K–$865K · Snohomish (Everett) ~$725K · Whatcom (Bellingham) ~$600K · Pierce (Tacoma, more affordable) ~$580K · Clark (Vancouver) ~$550K · Spokane (Eastern WA), much cheaper, ~$395K–$429K.
Down payment & rate help
WSHFC programs
You don’t apply directly — you work through a participating lender. A 620 credit score and a free homebuyer class are the main requirements.
-
01
Home Advantage + down payment help
The core: the Home Advantage 30-year fixed mortgage (conventional, FHA, VA, or USDA) at a below-market rate — with no first-time requirement and one high income limit ($215,000). Add the Home Advantage DPA: 3%, 4%, or 5% of your loan at 0% interest, with payments deferred 30 years.
-
02
City & county down payment programs
A Washington specialty — big local help stacks on top: Seattle up to $55,000, Bellingham up to $40,000, East King County (Bellevue, Redmond) up to $30,000, plus Tacoma and Pierce County. Ask a lender which apply to your address.
-
03
Special programs (disability, veterans & more)
WSHFC runs targeted second mortgages: HomeChoice gives up to $15,000 if you or a family member has a disability, Veterans DPA up to $10,000, and the Covenant program up to $150,000 for buyers with deep Washington roots affected by past housing discrimination.
-
04
Lower-income loans & federal help
For lower incomes, House Key Opportunity offers even lower rates (with county income and price limits). Plus the federal loans — VA (0% down, big near Joint Base Lewis-McChord and the Navy bases), USDA (0% down in rural areas), and FHA (3.5% down).
The WSHFC rules in brief
You’ll generally need a 620 credit score and completion of a free homebuyer education class (a five-hour class, in person or online). Home Advantage has one statewide income limit of $215,000 with no price cap; House Key Opportunity has lower, county-based income limits and price caps (about $725,000 in King/Pierce/Snohomish, less elsewhere). The down payment help is a deferred second mortgage. Note: WSHFC’s Mortgage Credit Certificate now appears to be offered only for refinances of existing certificates, so confirm new-buyer availability with your lender.
★ Free expert help
Buying in Washington? Get matched with a local expert.
From stacking WSHFC’s down payment help with a city program to getting an earthquake insurance quote for the Puget Sound region, a local pro can walk you through it — and answer the questions this page can’t. Free, with no obligation.
Property taxes
Property taxes in Washington: moderate
Two tax wins here. Washington has no state income tax on wages, and property taxes are moderate — an effective rate around 0.8–0.9%, near the national average. A key protection is the 1% levy limit: each taxing district’s regular tax revenue can only grow 1% a year (plus new construction), which keeps increases in check. Homes are assessed at full market value, and voter-approved school levies and bonds ride on top.
Real estate is exempt from the capital gains tax — but the seller pays REET
Two things to know. Washington’s 7% capital gains tax does NOT apply to real estate — selling your home is exempt no matter the gain. But there’s a real seller cost: the graduated Real Estate Excise Tax (REET), paid by the seller — 1.1% up to $525,000, rising to 1.28%, 2.75%, and 3.0% on higher tiers, plus a local 0.25–0.50%. On a $650,000 home that’s about $7,000+, usually the seller’s biggest closing cost. And seniors and disabled homeowners under income limits get a valuable exemption, recently expanded.
Closing & costs
Closing on a home in Washington
Washington is an escrow state — a title/escrow company handles the closing and recording, and an attorney isn’t required. Title insurance is standard (the seller usually pays your owner’s policy, you pay the lender’s). On financing, the 2026 conforming limit is $832,750, but the high-cost Seattle metro (King, Pierce, Snohomish) goes up to $1,063,750; the FHA floor of $541,287 covers most other counties. Remember the transfer tax (REET) is a seller cost here, not a buyer one.
Washington requires a detailed seller disclosure (Form 17)
Unlike “buyer beware” states, Washington requires the seller of most homes to complete a detailed Seller Disclosure Statement (Form 17) — covering title, water, sewer/septic, structure, systems, and environmental issues — based on what they know. You get it after mutual acceptance and then have a 3-business-day right to rescind. The federal lead-paint disclosure applies to pre-1978 homes. Always get your own home inspection too — the form is the seller’s knowledge, not a guarantee.
Insurance & risks
Insuring a Washington home
Washington home insurance is relatively cheap — averaging around $1,500 a year, well below the national average. But there’s a big hidden risk: earthquakes. The Cascadia Subduction Zone off the coast can produce a magnitude-9 megaquake (the 2001 Nisqually quake near Seattle was a smaller preview). Add growing wildfire in Eastern Washington, lahar (mudflow) risk from Mount Rainier in Pierce County, river flooding, and Pacific windstorms.
Earthquake coverage is separate — and most people skip it
This is the key thing in Washington: a standard policy excludes earthquake damage. You need a separate earthquake policy, and it carries a high deductible (typically 10–25% of your home’s value). Despite the Cascadia risk, few homeowners carry it — a big gap. If you’re buying in the Puget Sound region, at least get a quote (homes on soft fill soils shake harder). Two more: near Mount Rainier (Puyallup/Orting valley), confirm lahar coverage; and flood is separate too (NFIP) near rivers. Washington does have a FAIR Plan for homes that can’t get standard coverage.
Wherever you buy
The steps that work the same in Washington
Washington sets the local rules, but these parts of buying are the same everywhere.
Quick answers
Buying a house in Washington: common questions
How much money do you need to buy a house in Washington?
With a conventional loan you need 3% down, FHA 3.5%, and VA or USDA can be 0%. On a typical ~$650,000 home that’s roughly $19,500–$22,750 down plus closing costs — but WSHFC’s help, and stacked city programs, can cover much of it. See how much you really need →
Does Washington have down payment assistance?
Yes, and it’s generous. WSHFC’s Home Advantage DPA gives 3–5% of your loan at 0%, deferred 30 years. Cities add more — Seattle up to $55,000, Bellingham up to $40,000, East King County up to $30,000 — and special programs help buyers with disabilities and veterans. See assistance programs →
Are Washington property taxes high?
They’re moderate — an effective rate around 0.8–0.9%, near the national average — and there’s no state income tax. A 1% cap limits how fast each district’s tax revenue can grow. Bills are highest in dollar terms in King County because home values are high.
Do I need earthquake insurance in Washington?
It’s worth strongly considering, especially in the Puget Sound region, because of the Cascadia fault and the “Big One” risk. Standard policies exclude earthquakes, so it’s a separate policy with a high deductible (10–25%). Few homeowners carry it, despite the real risk.
What credit score do you need in Washington?
WSHFC generally requires a 620. For loans broadly, FHA can go to 580 and USDA/VA typically want 620. A higher score mainly earns a lower rate. Check the score by loan type →
Do I need an attorney to buy a house in Washington?
No. Washington is an escrow state — a title or escrow company handles the closing and recording. You can hire an attorney for a complex deal, but it’s not required. Title insurance is standard, and the seller usually pays for your owner’s policy.
Who pays the transfer tax in Washington?
The seller pays Washington’s Real Estate Excise Tax (REET), which is graduated — 1.1% up to $525,000, then higher on more expensive homes, plus a local 0.25–0.50%. It’s often the seller’s biggest closing cost. Note: real estate is exempt from the state capital gains tax.
What is the Cascadia earthquake risk?
The Cascadia Subduction Zone off Washington’s coast can produce a magnitude-9 “megaquake” — scientists estimate a 10–15% chance in the next 50 years. It’s the reason earthquake coverage (a separate, high-deductible policy) is worth considering, especially around Puget Sound.
What’s the conforming loan limit in Washington?
$832,750 in most counties for 2026, but the Seattle metro (King, Pierce, Snohomish) goes up to $1,063,750. FHA limits match — $1,063,750 in those three counties and $541,287 elsewhere. Loans above the local limit are jumbo.
★ Ready for the next step?
Don’t navigate the Washington market alone.
Tell us where you are in the process and we’ll connect you with an expert who can help — whether that’s a WSHFC loan, a city down payment program, a USDA or VA 0%-down approval, or fixing your credit. It’s free, with no obligation.
Compare states
Buying in a different state?
The programs, taxes, and closing rules change at the state line. Pick another state, or see all 50.