In 2017, Seattle FHA loan limits will increase due to significant home-price gains that occurred during 2016. The maximum loan limit for a single-family home in the Seattle metro area will go up to $592,250 in 2017. That’s an increase of more than $50,000 from 2016, when it was capped at $540,500.
According to a December press release from the Department of Housing and Urban Development (HUD): “The Federal Housing Administration (FHA) today announced the agency’s new schedule of loan limits, and due to an increase in housing prices, most areas in the country will see a slight increase in loan limits in 2017.”
Most counties in the country did, in fact, get a “slight” increase. But the increase for the Seattle metro area was one of the largest in the country. From 2016 to 2017, Seattle FHA loan limits are going up by $51,750.
Seattle FHA Loan Limits for 2017
Here are the revised (increased) FHA loan limits for Seattle in 2017:
- Single-family home: $592,250
- Two-family home: $758,200
- Three-family home: $916,450
- Four-family home: $1,138,950
Note: If you’re using an FHA-insured mortgage loan to buy a “regular” single-family home in Seattle, the $592,250 loan limit applies to you. The other three figures above apply to multi-family properties that are typically purchased by investors.
Loan limits vary by county, but they are generally uniform across metro areas. So the FHA caps shown above apply to the entire Seattle metro area, including all of King, Pierce and Snohomish counties.
Change Brought on by Rising Home Values
Both conforming and FHA loan limits are based on median home prices. Each year, Federal Housing Administration officials review the limits to ensure that they still fall within the target range, relative to home values. When house prices rise significantly during the course of a year, FHA loan limits are often raised as well. That’s what happened in Seattle from 2016 – 2017.
According to the real estate data company Zillow, home prices in Seattle have risen by more than 14% over the last year (Dec. ’15 – Dec. ’16). The broader metro area also posted a doubled-digit price increase during 2016. This is partly why Seattle FHA loan limits for 2017 have been lifted.
Conforming Loan Limits Also Getting a Boost
Last week, we reported that conforming loan limits for Seattle would also be increased for 2017. This applies to conventional or “regular” home loans that are not insured by the federal government.
In 2017, the conforming limit for a single-family home in the Seattle metro area will go up to $592,250, the same as the FHA cap.
Ready to Apply for the Program?
Do you plan to buy a home in the near future? Do you have questions about the Seattle FHA loan limits for 2017, or other aspects of the program? We’re here to help.
Sammamish Mortgage has been serving borrowers across the Pacific Northwest for more than 20 years. We offer many different types of home loans, including the ever-popular FHA program.
Please contact our staff with any questions you have, or to receive a rate quote.