- Live Rates
- Contact Us
What is Seattle’s conforming loan limit in 2021?
Conventional loan limits for the Seattle metro area went up in 2021, as they have been doing over the past few years with increasing housing prices.
Federal housing officials increased the loan limit in 2021 to $776,250.
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 2021.
By the end of 2020, the median home value for King County was around $688,500. And it was even higher within Seattle at $783,900.
High house prices in and around Seattle have lead to an increase in the conforming loan limits for the area for 2021.
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.
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.
The median home value for King County, Washington was $688,500 at the end of 2020, according to Zillow, as already mentioned. The median price within the city of Seattle was $783,900.
In response, the 2021 conforming loan limit for the county and metro area was increased to $776,250. It’s an interesting situation, which means that people buying the average-priced home in Seattle will have to take out a jumbo loan.
In King County — and within the Seattle metro area in particular — there is a slight “gap” between home values and loan limits. Those limits are set below average and median house prices for this part of the state.
Check out our mortgage loan limit tool for conventional, FHA, and VA loans.
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 2021, a conventional home loan in the Seattle area that exceeds the $776,750 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.
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.
Are you thinking of buying a home in Washington state using a VA loan? Read on to find out more and to check out our loan limits tool.
VA loans are highly beneficial to veterans who qualify, mainly because of the option to put no money down. Read on to find out more and to check out our loan limits tool.