How Much Should You Put Down on a $1M Home?

If you’ve spent any time researching this, you’ve probably heard the same advice on repeat: put 20% down to avoid private mortgage insurance. That’s fine guidance for a $400,000 home. For a $1M+ purchase in King County, it’s incomplete — and in some cases, it’s actually the wrong move.

Here’s how to think through it.

King County Changes the Math

Most people don’t realize that King County qualifies for high-balance conforming loan limits — which as of 2026 sit at $1,063,750. That matters because it expands your financing options significantly.

On a purchase up to that limit, you can access conventional high-balance loan pricing, which typically comes with better interest rates than a true jumbo loan. And you may only need 5–10% down to do it.

That means if you’re buying at $1.1M and plan to put 20% down ($220,000), you might want to stop and ask: is that the best use of that capital?

The Case for Putting Less Down

Liquidity matters. A lot of first-time buyers at this price point are high earners with concentrated assets — maybe in a brokerage account, RSUs, or a business. Tying up an extra $100K–$150K in home equity on day one means that money is illiquid, earning the rate of home appreciation rather than staying flexible.

If your investments are averaging 7–10% annually, and your mortgage rate is 6–7%, the math on keeping cash deployed elsewhere is closer than most people think. It’s not a slam dunk either way — but it’s worth running.

The Case for Putting More Down

Lower monthly payment. More equity from the start. Stronger offers in competitive markets. And if you’re the type of person who sleeps better without leverage, that has real value that doesn’t show up in a spreadsheet.

There’s no shame in a 20% down payment. Just make sure it’s a strategic choice, not a default.

The Option Most People Don’t Know About

At CCM, we offer a jumbo loan product up to 89.99% LTV — meaning you can put as little as 10.01% down on a home above the conforming limit with no private mortgage insurance. The trade-off is a slightly higher interest rate than you’d get at 80% LTV, but for buyers who want to preserve cash, it’s a real option worth modeling out.

The right down payment isn’t a percentage. It’s the number that balances your monthly payment, your liquidity, and your broader financial picture.

Before you decide, build the comparison: what does 10% down look like versus 20%? What’s the rate difference? What would you do with the extra cash? That’s the conversation worth having — and I run those numbers with buyers every day.

Ready to see what the numbers look like for your situation? Let’s talk.