Summary: The 2017 VA loan limit for King County, Washington is $592,250. The median home price in the county is currently around $532,000. Home buyers using VA loans can borrow above the limits, if they’re willing to make a down payment.
Home prices in King County, Washington rose by double digits over the last year. Despite these gains, the 2017 VA loan limit for the county is still higher than median home prices. This means borrowers who want to use this program to buy a house in King County should have some options available, without venturing into “jumbo” mortgage territory.
VA Loan Limit for King County: $592,250
The U.S. Department of Veterans Affairs, which manages the VA home loan program, limits the portion of the mortgage loan they are willing to guarantee. This can affect the amount you are able to borrow when using this program.
The 2017 VA loan limit for King County is $592,250. That’s the most the Department of Veterans Affairs will back, but it’s not necessarily the most you can borrow.
Median Home Price in Spring 2017: $532,600
According to the real estate data website Zillow, the median home price for King County, Washington rose to $532,600 in April 2017. That was an increase of 13.2% over the previous year, by their analysis.
Call it the “Seattle Effect.” Home prices across the Seattle metro area rose by double digits over the last year, due to strong demand and limited inventory. A 2016 study by CoreLogic found that home values in Washington State were rising faster than any other state in the nation.
Fortunately, the King County real estate market has “normalized” a bit, where home prices are concerned. House value appreciation has slowed down, and is expected to continue cooling over the next year or so. For example, Zillow predicts a gain of 4.2% over the next 12 months, compared to the 13.2% increase over the last year.
As a reminder, the 2017 VA loan limit for King County is $592,250, which is higher than the median home price for the county. So home buyers who plan to use a VA-guaranteed mortgage loan should have adequate financing to purchase a moderately priced home in the area.
The Department of Veterans Affairs bases its loan limits on the “conforming” caps established by the Federal Housing Finance Agency, and those limits are based on median home prices in each county. In short, the VA loan limits are designed to enable borrowers to purchase a moderately priced home.
If you need to go above the VA loan limit to buy a home, you can do that. You’ll just have to make a down payment of some kind (as explained in this article). VA borrowers who stay within the loan limits, on the other hand, typically qualify for 100% financing for no down payment. Just know that it’s possible to exceed the $592,250 amount, as long as your income is sufficient.