FHA loan limits for homes located in King, Pierce and Snohomish Counties will remain the same until September 30, 2011.
- 1 Unit – $567,500
- 2 Unit – $726,500
- 3 Unit – $878,150
- 4 Unit – $1,091,350
I have the FHA loan limits for other counties in Washington posted here. FHA still allows 3.5% down payment, which can be gifted (or loaned) by family; 5% down will provide slightly improved mortgage insurance rates. FHA insured loans may be assumable which may be a huge benefit for future home sellers when they are able to offer today’s rate in a higher rate environment.
VA Loan Limt effective January 1, 2011 through September 30, 2011 for King, Snohomish and Pierce Counties is $500,000. This is a slight increase from $481,250 in 2010. Here is a list of VA loan limits for all counties in Washington.
Qualified veterans can do 100% financing up to $500,000. If a sales price is above $500,000, the veterans down payment is 25% of the difference between the loan amount and sales price.
For example, if a veteran purchases home in Bellevue with a sales price of $600,000; their down payment is $25,000. 600,000 – 500,000 = 100,000. 100,000 x 25% = $25,000.
Any seller should include buyers who are using FHA or VA for financing or they are seriously limiting their potential for selling their home.