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Federal housing officials announced that FHA loan limits for Seattle and all other cities across the U.S. would be increased in 2021. We also mentioned that HUD officials would follow suit with a similar announcement of their own.
This is good news for borrowers who plan to use this program to buy a home next year.
In the Seattle area, the FHA loan limit for a single-family property has gone up to $776,250 in 2021. This figure applies to all of King, Pierce and Snohomish counties. Those three counties have higher loan limits than the rest of the state, due to higher home values across the Seattle area. All other counties in Washington have lower limits in 2021.
FHA loan limits went up for all counties in Washington.
The new limits will apply to FHA loans with case numbers assigned on or after January 1, 2021, and they will remain at that level through the end of the year. (These limits are typically reviewed at the end of each year, and adjusted when rising home prices warrant it.)
As of June 2021, the median home value in Seattle is around $831,953. That’s higher than the new FHA loan limit for 2021.
The following table outlines the new FHA loan limits in King, Pierce, and Snohomish counties:
Check out our mortgage loan limit tool for conventional, FHA, and VA loans.
We’ve written about the FHA loan program a lot over the years. Here’s a quick recap of the salient points from those other articles:
So how does the maximum FHA loan size for Seattle compare to home prices? After all, the official limits are based on median home values. So how do they stack up?
The current loan limits for 2021 were established at the the end of 2020. House prices in the Seattle metro area have risen quite a bit since then. As a result, the median home value as of December 2020 is now higher than the maximum FHA loan limit.
Earlier this month, the real estate data company Zillow reported that the median home price in Seattle had risen to $831,953. That was an increase of 10.7% from the same month last year.
So, as the year goes on, FHA borrowers might have to look harder to find a suitable property that falls within the loan limits mentioned above — or else make a larger down payment. And with the general consensus being that Seattle home prices will continue rising over the coming months, a strong case could be made for buying sooner rather than later.
Sammamish Mortgage is a local mortgage company serving the broader Pacific Northwest region, including Washington state, Idaho, Colorado, and Oregon. We have been offering a wide variety of mortgage programs and products with flexible qualification criteria since 1992. Please contact us if you have any questions or are ready to apply for a home loan.
There are a few key differences between VA, FHA, and USDA loans, in addition to each loan type’s eligibility requirements.
Military borrowers have three major loan programs to choose from when they want to secure a home loan: FHA, VA, and conventional loans. Read on to find out more and to check out our loan limits tool.