Pierce County FHA Loan Limits Increased for 2017
Do you plan to use an FHA loan to buy a home in Pierce County, Washington in 2017? If so, you could have an extra $51,750 to work with. That’s how much the loan limits are going up next year, due to home price increases. In 2017, the FHA loan limit for a single-family home purchased within the county will rise to $592,250.
On December 1, 2016, the Department of Housing and Urban Development (HUD) announced that it would be raising loan limits for FHA-insured mortgages in most counties across the country. These changes were made in response to significant home-price increases that occurred in 2016, across much of the country.
This change will apply to FHA loans with case numbers assigned on or after January 1, 2017, and will remain in effect through the end of the year.
Pierce County FHA Loan Limits in 2017
The single-family FHA loan limit for Pierce County, Washington will rise from $540,500 in 2016, to $592,250 in 2017. That’s a year-over-year increase of $51,750. The caps for multifamily properties will also go up next year, as shown below.
Here are the 2017 limits for Pierce County, in all four property types:
- One-family property: $592,250
- Two-family property: $758,200
- Three-family property: $916,450
- Four-family property: $1,138,950
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 is used for the entire Seattle metro area, including King, Pierce and Snohomish counties.
The increase from 2016 to 2017 is a response to rising home values. According to Zillow, home prices nationwide rose by more than 6% during 2016. They shot up by nearly 11% in Pierce County, Washington. FHA loan limits for 2017 have been increased to account for these changes.
As of December 2016, the median home price for Pierce County was around $281,000. 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 2017, or other aspects of the program? We’re here to help.
Sammamish Mortgage has been serving borrowers across the state for more than 20 years. We offer many different types of home loans, including the ever-popular FHA program. Our business and pricing model allows us to pass significant savings along to our customers.
Please contact our staff with any questions you have, or to receive a rate quote.