There are compelling reasons to choose short-term mortgages and long-term loans. Nevertheless, the best way to decide is to consult with a WA State home finance and real estate professional.
Pierce County FHA Loan Limits Increased for 2021
FHA loan limits in Pierce County are increased for 2021 as a result of rising prices in the county. We’ll discuss how much the limits increased for 2021, and what that means for you.
Do you plan to use an FHA loan to buy a home in Pierce County, Washington in 2021? The FHA loan limit for a single-family home purchased within the county is $776,250.
In early December 2020, the Department of Housing and Urban Development (HUD) announced that it would be raising loan limits for FHA-insured mortgages in all counties across the country. These changes were made in response to significant home-price increases that occurred in 2020, across much of the country.
This change will apply to FHA loans with case numbers assigned on or after January 1, 2021, and will remain in effect through the end of the year.
View Washington State Mortgage Rates Jan, 20, Wed, 2021
Pierce County FHA Loan Limits in 2021
The single-family FHA loan limit for Pierce County, Washington is $776,250 in 2021. The caps for multifamily properties will also go up next year, as shown below.
Here are the 2021 limits for Pierce 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 accordance with the National Housing Act, the Federal Housing Administration calculates its mortgage limits based on median house prices. Maximum loan sizes are generally set at the metropolitan statistical area (MSA) level.
That’s why the same loan limits are used for the entire Seattle metro area, including King, Pierce, and Snohomish counties, as per the table below:
| County Name | 1-Unit | 2-Unit | 3-Unit | 4-Unit |
| 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 increase from late 2019 to late 2020 is a response to rising home values. According to Zillow, home prices nationwide rose by 6.6% during 2020. They shot up by 13.4% in Pierce County, Washington. FHA loan limits for 2021 have been increased to account for these changes.
As of December 2020, the median home price for Pierce County was around $422,428. That’s well below the single-family FHA loan limit for the area. This means home buyers who use this mortgage program should have plenty of properties to choose from without exceeding the maximum loan size.
Elsewhere on our website, you’ll find a list of FHA limits for all counties in Washington State.
Want to Apply for the Program?
Do you plan to buy a home in Pierce County, Washington sometime soon? Do you have questions about the FHA loan limits for 2021 or other aspects of the program? We’re here to help.
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