Seattle Conforming Loan Limits Increased to $891,250 in 2022

November 27, 2018
Last updated:
May 3, 2022
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Home prices in the Seattle metro area have risen quite a bit over the last year or so. As a result, federal housing officials increased conforming mortgage loan limits for the Seattle area for 2022. This article will provide more details about what this year’s conforming loan limits are.

For all cities within King, Pierce, and Snohomish counties, the high balance conforming loan limit increased to $891,250 for 2022. That’s for a single-family home purchase. There are higher limits for multi-family properties like duplexes and triplexes.

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Seattle Loan Limit Will Be Increased for 2022

A “conforming” loan is one that meets or conforms to the size requirements used by Fannie Mae and Freddie Mac.

Those are the two government-sponsored enterprises (GSEs) that purchase loans from Seattle mortgage lenders.

  • When a home loan falls within the size limits used by the GSEs, it is referred to as a conforming loan.
  • If it exceeds those limits, it’s known as a jumbo loan.

Borrowers seeking a jumbo loan often have to meet stricter criteria, due to the higher amount of money being borrowed.

In 2022, the threshold that separates conforming and jumbo loans in Seattle will be increased due to rising home values. The high balance conforming loan limit for a single-family home in the Seattle metro area will go up to $891,250. That’s an increase of $115,000 from the 2021 cap of $776,250.

These limits are usually consistent across metro areas. So in the case of Seattle, this means that King, Pierce and Snohomish counties all have the same loan limits.

In the majority of the US, the 2022 conforming loan limit for single-family homes will be $647,200. That’s $98,950 higher than the 2021 limit of $548,250.

To be clear: Qualified borrowers with sufficient income can usually borrow more than the high balance conforming loan limit for their county. That would be a “jumbo” mortgage scenario.

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

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Higher Home Prices, Higher Mortgage Amounts

The increase in Seattle’s loan limits for 2022 is a direct result of significant home-price appreciation that occurred over the last year. These limits are reviewed annually in relation to home values. When the median house price for a particular area rises substantially within a year, federal housing officials typically increase the loan limits to keep pace. That’s what occurred over the past few years.

But it’s not just Seattle that will see higher mortgage loan limits in 2022. In fact, most counties across the country have been adjusted upward, in response to rising home values.

According to a recent press release from the Federal Housing Finance Agency (FHFA):

“The Federal Housing Finance Agency (FHFA) today announced the conforming loan limits (CLLs) for mortgages to be acquired by Fannie Mae and Freddie Mac (the Enterprises) in 2022. In most of the U.S., the 2022 CLL for one-unit properties will be $647,200, an increase of $98,950 from $548,250 in 2021”

As of November 2021, the median home value in Seattle is now about $874,877, according to Zillow. That marks an 11.0% increase from the same month last year. That’s why the metro area is seeing higher loan limits in 2022.

Related: Washington vs. Oregon home prices

VA Loan Limits Eliminated

Thanks to the Blue Water Navy Vietnam Veterans Act of 2019, VA loan limits were eliminated in 2020. That means eligible veteran applicants can buy homes at higher prices without having to worry about going over a loan limit and foregoing their zero down payment option.

Now, veterans can still take advantage of no money down without the concern of going over a loan limit.

However, those who have more than one current VA loan or who defaulted on a previous loan will still have loan limits applied to them.

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Need a Home Loan?

Will you need mortgage financing to buy a home in Seattle? We can help. Sammamish Mortgage has been serving buyers across Washington, Oregon, Idaho, and Colorado since 1992. We offer a wide variety of mortgage programs with flexible qualification criteria. Please contact us today with any financing-related questions you have.

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