King County’s home prices have been steadily rising, so federal housing officials decided to raise the county’s conforming loan limits for 2023. This article will discuss these figures and how they affect you as a home buyer.
As a result of consistent home price growth over that year, King County is seeing higher conventional loan limits. Here is a current look at the county’s jumbo and conforming loan limits for 2023.
What Is a ‘Jumbo’ Mortgage, Exactly?
A jumbo loan is one that, by definition, is larger than what Freddie Mac and Fannie Mae will buy.
These two government-sponsored businesses establish an annual cap on the number of mortgage loans they can purchase from mortgage lenders, along with their regulator, the Federal Housing Finance Agency.
King County’s conforming loan ceiling increased to $977,500 for 2023. The baseline for the state of Washington is $726,200.
A mortgage loan is referred to as a jumbo loan when it exceeds these conforming limits. In comparison to their smaller / conforming counterparts, the qualification requirements for jumbo mortgage products can generally be a little stricter.
The conforming loan limit for a single-family property in King County, Washington, will be $977,500 in 2023, so what will be regarded as a jumbo loan in that county? So, anything above that would be considered jumbo.
Just to be clear, you can borrow more than this. The larger loan size, however, may necessitate a larger down payment. If you have inquiries about applying for a jumbo loan in King County, Washington, please get in touch with us.
As shown in the table below, Pierce and Snohomish Counties’ loan limits also apply to King County.
|County Name||1-Unit Loan Limit||2-Unit Loan Limit||3-Unit Loan Limit||4-Unit Loan Limit|
Home Prices Rising Steadily
Over the past few years, home prices have increased steadily and significantly throughout the country, and in the Seattle metropolitan area in particular. However, they began to decline in the middle of 2018. But they’ve been rising ever since mid-2019. King County has experienced some of the largest county-level price increases over the past year, with prices now averaging $886,803 versus the state average of $610,121.
Remember that in King County, the conforming loan limit for conventional (non-government-backed) mortgage loans in 2023 is $977,500 for a single-family home? The county’s median, or midpoint, for home prices is less than that sum. Therefore, buyers have some leeway when it comes to obtaining a mortgage that is within the parameters of conforming loan sizes.
For conventional, FHA, and VA loans, check out our mortgage loan limit tool.
Will King County Jumbo Limits Increase in 2023?
Due to these developments, King County’s jumbo loan ceiling will increase in 2023. FHA and conventional/conforming limits are examined annually by federal housing regulators to make sure they are keeping up with home values. The limits are frequently raised in tandem with significant price increases throughout the year. This was evident last year, and it will do so once more in 2023.
King County home prices have already risen significantly over the course of 2022, and it is anticipated that they will do so again in the near future.
Here is a complete list of Washington’s loan ceilings.
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Will conforming loan limit be raised for 2022?
The Federal Housing Finance Agency (FHFA) announced on November 30, 2021, that they are increasing the 2022 conforming loan limits in California. This is good news for homeowners and homebuyers because it makes it easier to purchase a home after two years or nationwide rapid increases in home equity and value during COVID.
What is the conforming loan limit in Kings County NY?
|County||GSE 1-unit limit||FHA 1-unit limit|
What is the Fannie Mae conforming loan limit for 2022?
Washington, D. C. The conforming loan limits (CLLs) for mortgages to be purchased by Fannie Mae and Freddie Mac (the Enterprises) in 2022 were announced by the Federal Housing Finance Agency (FHFA) today. In most of the U. S. the CLL for one-unit properties will rise from $548,250 in 2021 to $647,200 in 2022, a $98,950 increase.
Will conforming loan limit increase in 2023?
The Federal Housing Finance Agency revealed on Tuesday that it will increase the conforming loan limits for Freddie Mac and Fannie Mae to more than $726,200. In most of the U. S. the maximum conforming loan limit for 2023 will increase from 510,400 to $726,200.