Washington Mortgage and Refinance Rates

While significantly higher than the pandemic-era lows, mortgage rates in Washington state have recently shown some signs of stabilizing and even slightly decreasing.

Refinance rates in Washington have been pretty steady lately, following the broader national trend of modest stabilization. Still, the right time to refinance will depend on the rates you qualify for, as well as your individual goals and needs. If you’ve been a homeowner for some time and are looking for a way to pay for a major purchase, a cash-out refinance could help you achieve your goals.

Washington’s housing market is dominated by the pricey properties in the Seattle region, but homes in the eastern part of the state are less expensive. Here are some statistics about mortgages and the housing market in the Evergreen State:

• Median home sales price, July 2025: $647,600
• Median down payment, May 2025: $125,000
• Median days on market, July 2025: 23

Sources: ATTOM, Redfin

If you’re looking to get a mortgage in Washington, there are several options:

• Washington conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio of no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI), as well.
• Washington FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this loan type with a credit score as low as 580.
• Washington VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage guaranteed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 2.15 percent for the first use.

In Washington, qualifying first-time homebuyers have access to a variety of programs and educational opportunities, including:

• Home Advantage Program and down payment assistance: This state program is for new homebuyers — either first-time homebuyers or those who have owned in the past but do not currently. Through this program, qualifying buyers can receive up to 5 percent of the first mortgage price in down payment assistance. The borrower must attend a free five-hour homebuyer education course to qualify, among other criteria.
• House Key Opportunity Program: Designed exclusively for first-time homebuyers, this state bond program requires borrowers to complete a homebuyer education course and work with a state-approved lender. The program is only available to those using certain down payment assistance programs, and there are exceptions for those purchasing a new construction or a home in a community land trust.
• EnergySpark: If you qualify for a Home Advantage loan and want to buy an eco-friendly home, the Washington State Housing Finance Commission’s (WSHFC) EnergySpark program can give you an interest rate reduction. To qualify, you must be buying a new home that exceeds Washington state energy standards by 15 percent, or buying an existing home that’s been renovated to exceed standards by 10 percent.