Seattle’s Loan Limits Increased For 2023

Published:
October 2, 2018
Last updated:
December 1, 2022
In This Article

What is Seattle’s conforming loan limit in 2023?

Conventional loan limits for the Seattle metro area went up in 2023, as they have been doing over the past few years with increasing housing prices.

Federal housing officials increased the loan limit in 2023 to $977,500.

Seattle is Seeing Higher Loan Limits in 2023

Home prices across the Seattle metro area have increased steadily over the past few years. Accordingly, the conforming loan limit has steadily increased over the recent past and increased again in 2023.

By the end of 2022, the median home value for King County was around $886,803. And it was even higher within Seattle at $927,525.

High house prices in and around Seattle have led to an increase in the conforming loan limits for the area for 2023.

Explainer: These limits are what separate a normal or “conforming” mortgage loan from a jumbo. A conforming loan can be sold to Freddie Mac and Fannie Mae, securitized, and resold to investors. A jumbo loan, on the other hand, cannot be sold into that market. Qualification requirements are sometimes stricter for those borrowers who are seeking a jumbo loan, due to the amount being borrowed.

Today’s Seattle Mortgage Rates

Loan limits are established by federal housing agencies and are largely based on the median home values within each county. And when those house prices rise considerably over the course of a year, housing officials often increase the loan limits to keep up. That’s something we’ve seen in Seattle over the last year.

Consider the following:

The median home value for King County, Washington was $886,803 at the end of 2022, according to Zillow, as already mentioned. The median price within the city of Seattle was $927,525.

In response, the 2023 conforming loan limit for the county and metro area was increased to $977,500.

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

Going ‘Jumbo’ With Your Mortgage Financing

As mentioned earlier, it’s possible to borrow more than the conforming loan limit for a particular county. This is referred to as a jumbo mortgage.

As of 2023, a conventional home loan in the Seattle area that exceeds the $977,500 limit is considered to be a jumbo loan. And with house values as high as they are right now, there are likely more borrowers seeking this level of financing today.

Get an Instant Mortgage Rate Quote Today

Need a home loan?

If you’re in the market to buy a home in Seattle, Sammamish Mortgage is available to help. 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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