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Pierce County, WA Conforming Loan Limits for 2021

Summary: The conforming loan limits for Pierce County, WA will go up in 2021. This article will explain where the limits will be in the new year.

Consider it a New Year’s gift from housing officials. Loan limits for Pierce County, Washington will go up in response to rising home values.

The revised conforming loan limit for Pierce County is $776,250, for a single-family home. Anything above that is considered a “jumbo” mortgage, meaning it’s too large to be sold to Fannie Mae and Freddie Mac.

Pierce County Conforming Loan Limits for 2021

Here are the revised conforming loan limits for Pierce County in 2021:

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

Notes: In this context, a “one-unit” property is a regular single-family home. That’s the limit that applies to most home buyers in Pierce County. The two, three, and four-unit caps mostly apply to real estate investors purchasing multi-unit properties like duplexes and triplexes.

Related: FHA limits are also going up

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Rising Home Values Bring Higher Mortgage Caps

In late 2020, the Federal Housing Finance Agency (FHFA) announced that it would increase the maximum conforming loan limits for mortgages purchased by Fannie Mae and Freddie Mac. In most of the country, the 2021 maximum limit for a one-unit property will be $776,250.

Loan limits are set at the county level, officially, but they are usually the same across an entire metro area. So the 2021 caps shown apply to the greater Seattle metropolitan area, including King, Pierce, and Snohomish counties.

County1 Unit2 Unit3 Unit4 Unit
PIERCE$776,250$993,750$1,201,200$1,492,800
KING$776,250$993,750$1,201,200$1,492,800
SNOHOMISH$776,250$993,750$1,201,200$1,492,800

This change should come as welcome news to home buyers and mortgage shoppers in Pierce County. The higher loan limits will give borrowers more properties to choose from, without venturing into jumbo mortgage territory. (A jumbo loan is one that exceeds the conforming loan limit within the county where the home is located, and therefore cannot be sold to Fannie Mae and Freddie Mac.)

The Seattle Effect

According to Zillow, the median home price across Pierce County rose by 13.4% during 2020, to land at $422,420 by December 2020. So why is the single-family conforming loan limit for Pierce County so much higher than that? The answer has to do with the metro area grouping mentioned earlier.

Loan limits are generally kept uniform across metro areas, and home prices in and around Seattle are much higher than the countywide average for Pierce County. Seattle’s median home price is north of $783,970, as of December 2020. That’s why the conforming loan limit is set at nearly $776,250. Call it the “Seattle effect.”

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Do you plan to buy a home in Pierce County during 2020? Need a mortgage loan to make it happen? We can help! Sammamish Mortgage has been serving borrowers in the Seattle area since 1992. We are a local, family-owned company offering competitive rates on a variety of loan products. Contact us for a rate quote, or with any questions you have.

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