How Much House Can You Really Afford in Seattle?
The number a lender approves you for and the number you should actually spend are rarely the same. Here's how to find your real, comfortable budget in one of the country's pricier markets — and the costs first-timers forget.
Start with the 28/36 rule
A reliable guardrail: keep housing costs under about 28% of your gross monthly income, and all debts (housing + car + student loans + credit cards) under about 36%. Lenders may stretch to 43–50% DTI, but that ceiling is their risk tolerance, not your comfort.
Add the costs beyond principal & interest
A mortgage payment is only part of the picture. Budget all of it:
- Property taxes — roughly 0.9% (King) to 1.1% (Pierce) of value per year.
- Homeowners insurance — and consider a Cascadia earthquake endorsement.
- PMI if you put down less than 20% (removable later on conventional loans).
- HOA dues for condos/townhomes, utilities, and ~1%/year for maintenance.
Down payment changes everything
You don't need 20%. Conventional loans go as low as 3% down and FHA as low as 3.5%, and Washington's WSHFC programs can help with the down payment. More down lowers your payment and can remove PMI — but draining your savings to hit 20% can leave you house-rich and cash-poor.
Run your real number
Rather than guessing, use FirstNest's free Buying Power tool. It applies the 28/36 math to your income, debts, and down payment to show a max home price and a realistic monthly payment — computed precisely, never estimated by a chatbot.
Keep reading
This article is for education only — not financial, legal, or tax advice. Market conditions, rates, and programs change; verify current details with a licensed lender, your agent, and official sources.
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