Seattle’s Loan Limits Increased For 2022

Published:
October 2, 2018
Last updated:
December 6, 2021
In This Article

What is Seattle’s conforming loan limit in 2022?

Conventional loan limits for the Seattle metro area went up in 2022, as they have been doing over the past few years with increasing housing prices.

Federal housing officials increased the loan limit in 2022 to $891,250.

Seattle is Seeing Higher Loan Limits in 2022

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 2022.

By the end of 2021, the median home value for King County was around $812,129. And it was even higher within Seattle at $874,877.

High house prices in and around Seattle have led to an increase in the conforming loan limits for the area for 2022.

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 $812,129 at the end of 2021, according to Zillow, as already mentioned. The median price within the city of Seattle was $874,877.

In response, the 2022 conforming loan limit for the county and metro area was increased to $891,250.

Check out our mortgage loan limit tool for conventional, FHA, and VA loans.

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 2022, a conventional home loan in the Seattle area that exceeds the $891,250 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.

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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. We’ve been helping buyers obtain the mortgages they need in Oregon, Washington, Colorado, and Idaho since 1992, and we’d love to help you too. Please contact us today to get started.

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