The Spokane mortgage guides
Conventional Loans
Updated: August 2026
Conventional Loans in Spokane, WA.3% Down
3% down, a 620 credit score, and the conforming limit covers almost every listing in Spokane County.
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A conventional loan in Spokane County works with as little as 3% down for first-time buyers and a 620 credit score, and it covers purchases up to the $832,750 conforming limit for 2026. On the $425,000 median-priced home here, that's $12,750 down instead of the 20% a lot of buyers assume they need.
Who a conventional loan fits
Conventional is the default loan for most buyers I work with across South Hill, Kendall Yards, and Spokane Valley — solid credit, some down payment saved, and a purchase price under the conforming limit. First-time buyers can go as low as 3% down at 620+. Repeat buyers usually put 5% or more down, which shrinks the loan and often improves pricing. If your score is closer to 580, I'll usually point you toward the FHA loan alternative instead, since it's built for a lower credit floor.
What it actually costs
On a $425,000 purchase with 3% down, you're borrowing $412,250. Your rate depends on credit score, loan size, and property type, and it moves with the market daily — so rather than print a figure that ages badly, I'll price your file and show you the rate alongside its APR. Below 20% down, you'll also carry private mortgage insurance (PMI), estimated around 0.6% of the loan amount annually. On that $412,250 loan, that's roughly $206 a month, folded into your payment alongside principal, interest, taxes, and insurance.
The part people like about conventional PMI: it's temporary. Once your loan balance drops to 80% of the home's value — through payments, appreciation, or both — you can request that PMI be removed. That's a real difference from FHA, where mortgage insurance typically stays for the life of the loan.
The $832,750 conforming limit
As of 2026, the conforming loan limit for a single-family home is $832,750 in Spokane County, and it's the identical number across the state line in Kootenai County, Idaho. That ceiling covers nearly everything for sale in Spokane, Spokane Valley, Liberty Lake, South Hill, and Cheney — the median home here runs about $425,000, well under the limit. If you're shopping above $832,750, whether that's a larger property near Liberty Lake or something custom-built on the South Hill, that moves into jumbo loan above $832,750 territory, which has its own down payment and credit rules.
Conventional vs. FHA: the short version
Conventional usually wins once your credit score clears 680 and you have at least 5% down — PMI runs cheaper than FHA's mortgage insurance and it eventually goes away. Below 620, or if your down payment is thin, FHA often pencils out better month to month, even with its permanent mortgage insurance. First-time buyers weighing both should also look at first-time buyer programs in Spokane, since down payment assistance can stack with either loan type and change which one makes more sense for your numbers.
How I run your numbers
I don't quote a generic rate off a website and call it done. I pull your credit, confirm your down payment source, and run the actual payment — principal, interest, taxes, insurance, and PMI if it applies — specific to the home you're looking at, whether that's in Cheney, Kendall Yards, or across the line in Coeur d'Alene. If FHA or a down payment assistance program would save you more, I'll say so before we ever talk about a conventional loan.
If you're ready to see real numbers on a specific property, or you just want to know what you'd qualify for before you start touring homes, start a quote above or reach out directly.
On the record
Frequently asked questions.
How much down payment do I need for a conventional loan in Spokane?
As little as 3% if you're a first-time buyer with a credit score of at least 620. Move-up buyers and repeat purchasers typically put down 5%, though any amount above that lowers your payment and your mortgage insurance cost. On a $425,000 home — the current Spokane median — 3% down is $12,750.
What credit score do I need for a conventional loan?
620 is the typical floor most lenders use, including me. Your rate gets meaningfully better as your score climbs past 680 and again past 740. If you're sitting in the 580-619 range, an FHA loan is usually the faster path in, and I'll tell you that upfront rather than waste your time on a conventional application that won't price well.
What's the conforming loan limit in Spokane County for 2026?
$832,750 for a single-family home, and that's the same limit across the state line in Kootenai County, Idaho. That ceiling covers the large majority of homes listed in Spokane, Spokane Valley, Liberty Lake, South Hill, and Cheney. Anything priced above it needs a jumbo loan above $832,750 instead.
Do I have to pay PMI on a conventional loan?
Only if you put down less than 20%. On a typical Spokane purchase, estimate roughly 0.6% of the loan amount per year, split into your monthly payment. The good news: PMI isn't permanent. Once you hit 20% equity, whether through payments or appreciation, you can request that it drop off — unlike FHA mortgage insurance, which usually sticks around for the life of the loan.
What's a conventional rate right now in Spokane?
Rates move daily, so any number posted on a website is stale before you read it. Your actual rate depends on credit score, down payment, loan size, and property type — which is why the number I run for your specific file, shown with its APR, is the only one worth acting on. That pricing takes a few minutes.
Is a conventional loan better than FHA?
It depends on your credit and how much you're putting down. Conventional usually wins once your score is above 680 and you have at least 5% down, since PMI is cheaper and temporary. Below 620, or with a smaller down payment cushion, the FHA loan alternative often works out cheaper month to month. I run both numbers before recommending either one.
Can I use a conventional loan to buy in Liberty Lake or Cheney?
Yes. Conventional financing works the same across Spokane County, including Spokane Valley, Liberty Lake, South Hill, Kendall Yards, and Cheney, and the identical $832,750 limit applies in Kootenai County, Idaho. Nothing about the program changes based on which side of the county line — or state line — you're buying on.
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