Maximum FHA Loan Limit in Seattle Jumps to $977,500 in 2023

Published:
December 17, 2018
Last updated:
December 2, 2022
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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 2023. 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.

New FHA Loan Limit for Seattle Area: $977,500

In the Seattle area, the FHA loan limit for a single-family property has gone up to $977,500 in 2023. 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 2023.

Related: 5 common questions about FHA loan in Washington state

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, 2023, 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 December 2022, the median home value in Seattle is around $927,525. That’s a bit lower than the new FHA loan limit for 2023.

Today’s Seattle Mortgage

The following table outlines the new FHA loan limits in King, Pierce, and Snohomish counties:

County Name1-Unit2-Unit3-Unit 4-Unit 
King$977,500$1,251,400$1,512,650$1,879,850
Pierce$977,500$1,251,400$1,512,650$1,879,850
Snohomish$977,500$1,251,400$1,512,650$1,879,850

Check out our mortgage loan limit tool for conventional, FHA, and VA loans, as well as the 2023 FHA loan limits for Washington State.

Fast Facts: How This Mortgage Program Works

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:

  • The Federal Housing Administration insures these loans against default-related losses. While this insurance primarily protects Seattle mortgage lenders that generate the loans, it also results in flexible qualification requirements for borrowers.
  • FHA loans require a minimum down payment of 3.5%. This appeals to borrowers with limited funds in the bank, including many first-time buyers. But the program is not limited to first-time buyers.
  • This program requires borrowers to pay mortgage insurance premiums. While conventional (non-FHA) loans also require mortgage insurance in low-down-payment situations, it can be canceled when the homeowner reaches a certain equity level. The annual insurance premium for FHA loans, on the other hand, typically has to be paid for the life of the loan.
  • The Federal Housing Administration has congressionally mandated limits as to the size of loans it can insure. These FHA loan limits vary by county and are reviewed every year in relation to home prices.

Related: FHA loan requirements for Washington state home buyers

Home Prices in the Metro Area Continue to Rise

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 2023 were established at the end of 2022. House prices in the Seattle metro area have risen quite a bit since then. The median home value as of December 2022 is just a bit lower 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 $927,525. That was an increase of 7.1% from the same month last year.

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Need a Mortgage?

At Sammamish Mortgage, we offer a wide variety of mortgage programs and tools with flexible qualification criteria, including our Diamond Homebuyer ProgramCash Buyer Program, and Bridge Loans. We have been serving the entire state since 1992, as well as the broader Pacific Northwest region that includes Washington, Oregon, Colorado, and Idaho. Please contact us today with any financing-related questions you have.

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