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Seattle Conforming Loan Limits Increased to $776,250 in 2021

Sammamish Mortgage
November 27, 2018
Last updated:
June 28, 2021
Seattle Conforming Loan Limits Increased this year
In This Article

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 2021. 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 $776,250 for 2021. That’s for a single-family home purchase. There are higher limits for multi-family properties like duplexes and triplexes.

County 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

Seattle Loan Limit Will Be Increased for 2021

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 2021, 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 $776,250. That’s an increase of $34,500 from the 2020 cap of $741,750.

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 2021 conforming loan limit for single-family homes will be $548,250. That’s $37,850 higher than the 2020 limit of $510,400.

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.

Today’s Seattle Mortgage Jul, 31, Sat, 2021

Higher Home Prices, Higher Mortgage Amounts

The increase in Seattle’s loan limits for 2021 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 saw higher mortgage loan limits in 2021. 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):

“..As a result of generally rising home values, the increase in the baseline loan limit, and the increase in the ceiling loan limit, the maximum conforming loan limit will be higher in 2021 in all but 18 counties or county equivalents in the U.S”

As of June 2021, the median home value in Seattle is now about $831,953, according to Zillow. That marks a 10.7% increase from the same month last year. That’s why the metro area is seeing higher loan limits in 2021.

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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