Helping Washington State homeowners learn more about their mortgage options.
There’s been a lot of recent chatter about the possibility of conforming loan limits being reduced in 2014 that home buyers in the greater Seattle area and home owners should be aware of.
Reuters reports that Denise Dunckel, a spokes person for the FHFA recently stated “a gradual reduction in loan limits is an appropriate and effective approach to reducing taxpayer’s mortgage risk exposure”.
VA has published the loan limits for 2013. The loan limits listed below are not the maximum loan amounts that an eligible veteran may borrower; the loan amounts below are used to calculate the VA’s maximum guaranty amount in a specific county.
King, Pierce and Snohomish Counties went up a little while San Juan County was adjusted slightly lower. VA loan limits are based on the county’s median home values as estimated by FHA (Federal Housing Adminstration).
King County: $500,000
Pierce County: $500,000
San Juan County: $468,750
Snohomish County: $500,000
All other counties remain at $417,000
This means that in King County, a qualified Veteran can finance a home with zero down with a sales price up to $500,000.
Any sales price/loan amount above this amount is considered a “VA Jumbo”. VA does not have a loan limit for VA jumbos, however most lenders have “overlays” limiting loan amounts for VA Jumbos. VA Jumbos allow the Vet to buy a home with reduced down payment. A simple formula to estimate the minimum down payment required is sales price minus loan amount x 25% = minimum down payment.
For example, home in Seattle with a sales price of $600,000 would have a down payment requirement of $25,000 for an eligible veteran. $600,000 sales price less the $500,000 loan limit = $100,000. $100,000 x 25% = $25,000.
If you’re considering a VA mortgage loan to buy or refinance a home located anywhere in Washington state, I’m honored to help you.
HUD has confirmed that 2013 FHA loan limits will remain unchanged from 2012.
King County, Snohomish County and Pierce County
- 1 Unit: $567,500
- 2 Unit: $726,500
- 3 Unit: $878,150
- 4 Unit: $1,091,351
Benton and Franklin Counties:
- 1 Unit: $275,000
- 2 Unit: $352,050
- 3 Unit: $525,550
- 4 Unit: $528,850
Chelan and Douglas Counties:
- 1 Unit: $342,700
- 2 Unit: $438,700
- 3 Unit: $530,300
- 4 Unit: $659,050
Clallam County:
- 1 Unit: $384,100
- 2 Unit: $491,700
- 3 Unit: $594,350
- 4 Unit: $738,650
Clark and Skamania Counties:
- 1 Unit: $418,750
- 2 Unit: $536,050
- 3 Unit: $648,000
- 4 Unit: $805,300
Island County:
- 1 Unit: $381,250
- 2 Unit: $488,050
- 3 Unit: $589,950
- 4 Unit: $733,150
Jefferson County:
- 1 Unit: $437,500
- 2 Unit: $560,050
- 3 Unit: $677,000
- 4 Unit: $841,350
Kitsap County:
- 1 Unit: $475,000
- 2 Unit: $608,100
- 3 Unit: $735,050
- 4 Unit: $913,450
Kittitas County:
- 1 Unit: $328,750
- 2 Unit: $420,850
- 3 Unit: $508,700
- 4 Unit: $632,200
Mason County:
- 1 Unit: $310,000
- 2 Unit: $396,850
- 3 Unit: $497,700
- 4 Unit: $596,150
San Juan County:
- 1 Unit: $593,750
- 2 Unit: $760,100
- 3 Unit: $918,800
- 4 Unit: $1,141,850
Skagit County:
- 1 Unit: $373,750
- 2 Unit: $478,450
- 3 Unit: $578,350
- 4 Unit: $718,750
Thurston County:
- 1 Unit: $361,250
- 2 Unit: $462,450
- 3 Unit: $559,000
- 4 Unit: $694,700
Whatcom County:
- 1 Unit: $375,000
- 2 Unit: $480,050
- 3 Unit: $580,300
- 4 Unit: $721,150
Adams, Asotin, Cowlitz, Ferry, Garfield, Grant, Grays Harbor, Lewis, Lincoln, Okanogan, Pacific, Pend Oreille, Spokane, Stevens, Whakiakum, Walla Walla, Whitman and Yakima Counties:
- 1 Unit: $271,051
- 2 Unit: $347,009
- 3 Unit: $419,425
- 4 Unit: $521,250
Related post: 2013 Conforming Loan Limits for Washington State
The Federal Housing Financing Agency (FHFA) who oversees Fannie Mae and Freddie Mac, confirmed that conforming limits for 2013 will be unchanged from 2012. This means that a single family 1-unit residence in the greater Seattle area has a conforming loan limit of $506,000. Loan amounts above conforming limits are considered “jumbo” or non-conforming.
Four counties in Washington continue to have “high balance” loan limits above the “general” loan limits:
King County, Snohomish County and Pierce County:
1 Unit: $506,000
2 Unit: $647,750
3 Unit: $783,000
4 Unit: $973,100
San Juan County:
1 Unit: $483,000
2 Unit: $618,300
3 Unit: $747,400
4 Unit: $928,850
The remaining Washington counties have “general” loan limits:
Adams, Asotin, Benton, Chelan, Clallam, Clark, Columbia, Cowlitz, Douglas, Ferry, Franklin, Garfield, Grant, Grays Harbor, Island, Jefferson, Kitsap, Kittatas, Klickitat, Lewis, Mason, Okanogan, Pacific, Pend Oreille, Skagit, Skamania, Spokane, Stevens, Thurston, Wahkiakum, Walla Walla, Whatcom, Whitman and Yakima Counties:
1 Unit: $417,000
2 Unit: $533,850
3 Unit: $645,300
4 Unit: $801,950
VA has issued Circular 26-12-7 increasing loan limits for VA loans closed through the end of the year in the following Washington state counties:
King, Pierce and Snohomish: $498,750
San Juan: $470,000
All other counties remain at $417,000
This means that in King County, a qualified Veteran can finance a home with zero down with a sales price up to $498,750. With that said, some lenders are still reviewing this recent change and are evaluating whether or not they will recognize the new increase or keep loan limits are their current level.
Any sales price/loan amount above this amount is considered a “VA Jumbo”. VA does not have a loan limit for VA jumbos, however most lenders have “overlays” limiting loan amounts for VA Jumbos. VA Jumbos allow the Vet to buy a home with reduced down payment. A simple formula to estimate the minimum down payment required is sales price minus loan amount x 25% = minimum down payment.
Right now, as of publishing this post, I’m quoting 3.375% for a sales price of $400,000 (apr 3.557) with zero down payment. The seller can pay closing cost and prepaids up to 4% of the sales price. There is no mortgage insurance, however VA loans do have a funding fee which can be financed.
If you are selling a home, please consider buyers who are preapproved for VA financing. It’s a great program benefiting those who have served our country.
Congress decided to keep the 2012 Conforming Limits at the existing 2008 levels instead of reverting to the higher “temporary” limits that we’ve experienced the past couple of years**. In their infinite wisdom, Congress did restore the higher loan limits to FHA insured loans. This means that in order to not have a jumbo loan in the greater Seattle area, your loan amount will need to be $506,000 and lower for conventional or $567,500 or lower for FHA insured mortgages. I’ll be officially posting FHA insured loan limits soon.
Four counties in Washington continue to have “high balance” loan limits above the “general” loan limits:
King County, Snohomish County and Pierce County:
- 1 Unit: $506,000
- 2 Unit: $647,750
- 3 Unit: $783,000
- 4 Unit: $973,100
San Juan County:
- 1 Unit: $483,000
- 2 Unit: $618,300
- 3 Unit: $747,400
- 4 Unit: $928,850
The remaining Washington counties have “general” loan limits:
Adams, Asotin, Bention, Chelan, Clallam, Clark, Columbia, Cowlitz, Douglas, Ferry, Franklin, Garfield, Grant, Grays Harbor, Island, Jefferson, Kitsap, Kittatas, Klickitat, Lewis, Mason, Okanogan, Pacific, Pend Oreille, Skagit, Skamania, Spokane, Stevens, Thurston, Wahkiakum, Walla Walla, Whatcom, Whitman and Yakima Counties:
- 1 Unit: $417,000
- 2 Unit: $533,850
- 3 Unit: $645,300
- 4 Unit: $801,950
Loan amounts above the figures listed above are considered “jumbo” or “non-conforming”.
**NOTE: Congress DID increase loan limits in one county in Connecticut for 2012.
Rhonda Porter is a Licensed Mortgage Originator MLO121324 living in the greater Seattle area. Rhonda began her career in 1986 in the title and escrow industry and began her mortgage career in 2000. She enjoys helping people understand the mortgage process and started writing The Mortgage Porter in late 2006. Read More…
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