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King County FHA Loan Limits Increased for 2021

Sammamish Mortgage
December 17, 2019
Last updated:
June 21, 2021
In This Article

For 2021, FHA loan limits in king County are increased in response to rising prices in the county. In this article, we’ll discuss how much the limits increased for 2021, and what this means for your homebuying process.

If you are planning to apply for an FHA loan to buy a home in King County, Washington in 2021, then you will want to know the maximum amount that you can borrow without your loan being considered a “jumbo loans.” Each year, the FHA loan limits tend to change in response to an increase in home prices. For King County, the FHA loan limit for a single-family home is $776,250 for 2021.

In early December 2020, the Department of Housing and Urban Development (HUD) announced that it would increase loan limits for FHA-insured home loans in all counties across the nation. These modifications were made as a result of home-price increases that took place in 2020. These loan limits will remain in effect for the duration of 2021.

View WA State Mortgage Rates Aug, 03, Tue, 2021

King County FHA Loan Limits in 2021

The FHA loan limit for King County, Washington for a single-family home is $776,250 for 2021. The limits for multi-family residences will also increase for 2021, as shown further down.

Here are the 2021 limits for King County, in all four property types:

  • One-family property: $776,250
  • Two-family property: $993,750
  • Three-family property: $1,201,200
  • Four-family property: $1,492,800

A Response to Home Price Appreciation

In compliance with the National Housing Act, the Federal Housing Administration (FHA) calculates its loan limits based on the average home prices in each market across the country. Maximum loan sizes are typically established based on the metropolitan statistical area (MSA) level.

For this reason, the FHA loan limits are used for the entire Seattle metro area, including King, Pierce, and Snohomish Counties, as shown in the table below:

County Name 1-Unit 2-Units 3-Units 4-Units
King $776,250 $993,750 $1,201,200 $1,492,800
Pierce $776,250 $993,750 $1,201,200 $1,492,800
Snohomish $776,250 $993,750 $1,201,200 $1,492,800

The loan limit increases from 2020 to 2021 are in response to increasing property values. According to real estate research company Zillow, the prices for homes across the country increased by 13.2% during 2020. While the price increases in King County are not as pronounced, they are still steadily rising. As such, FHA loan limits for 2021 in King County have been increased to account for such changes.

As of December 2020, the median home price for King County was around $749,153. That’s well below the 1-unit FHA loan limit for the county. This is good news for homebuyers who use the FHA program, as it gives them plenty of properties to choose from and lots of wiggle room without going over the maximum loan size.

Here is a list of FHA limits for all counties in Washington State.

Check out our mortgage loan limit tool for conventional, FHA, and VA loans.

Want to Apply for the Program?

Are you planning to buy a home in King County, Washington sometime soon? Do you have questions about the FHA loan limits for 2021 or other facets of the program? We at Sammamish Mortgage are here to help.

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Sammamish Mortgage is a local mortgage company serving the broader Pacific Northwest region, including Washington state, Idaho, Colorado, and Oregon. We have been offering a wide variety of mortgage programs and products with flexible qualification criteria since 1992. Please contact us if you have any questions or are ready to apply for a home loan.

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