2013 Mortgage Loan Limits for King County

rate changesThe 2013 mortgage loan limits for the  greater Seattle area are for the most part, the same as 2012.  The following loan limits apply for homes located in King, Snohomish or Pierce Counties.

Conforming:

1 Unit: $506,000

2 Unit: $647,750

3 Unit: $783,000

4 Unit: $973,100

FHA:

1 Unit: $567,500

2 Unit: $726,500

3 Unit: $878,150

4 Unit: $1,091,351

VA:  

$500,000.

NOTE: Technically speaking, VA loans do not have a “limit”. $500,000 is the highest loan amount for a “zero down” VA loan. If a qualified Veteran wishes to buy a home priced above $500,000, the down payment will be 25% of the difference between the sales price/appraised value (lowest of the two) and $500,000.  For example, a $600,000 sales price would have a down payment of $25,000 ($600,000 less $500,000 = $100,000 x 25% = $25,000).

You can find a complete list of loan limits by county for homes located in Washington state in the “footer” of my blog.

About Rhonda Porter

Rhonda Porter is an NMLS Licensed Mortgage Originator MLO121324 for homes located in Washington state. Her blog, The Mortgage Porter, is nationally recognized for sharing relevant information to consumers about mortgages.

She has been originating mortgages since 2000 at Mortgage Master Service Corporation #40445 Consumer NMLS Website: http://www.nmlsconsumeraccess.org/TuringTestPage.aspx?ReturnUrl=/EntityDetails.aspx/COMPANY/40445
NMLS ID 40445. Equal Housing Opportunity.

You can follow Rhonda on @mortgageporter, Facebook and/or Google+

Comments

  1. Hi Rhonda,

    Thanks for that! Do you also have the rates for multi-family?

    – Marlow

  2. One nice thing about the FHA loan is that these allow first time home buyers buy a home with less than 3.5% down. Plus, most of your closing costs and fees can be included in the loan. The reasoning behind the low down payment is because the Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your lender can offer you a better deal.

    • Actulally Simon, only the upfront mortgage insurance premium can be financed into the loan. Rebate pricing (increasing the rate) can pay for closing cost and prepaids. The seller can pay for closing cost and prepaids too (currently up to 6% of the sales price).

      HOWEVER, closing costs, fees and prepaids/reserves cannot be included in the loan amount.

      FHA is a great program for certain home buyers however if a borrower has excellent credit and 5% down, then conventional financing is probably a better route.

      Just because HUD insures the loan does not make it a “better deal”.

      Home buyers should check out all available options with a local mortgage professional (hopefully one who’s licensed) and make an informed decision.

      • Rhonda, I should have been a little clearer in my comment. Closing costs on a FHA loan can be included in the financing if you do not exceed the LTV threshold of 96.5% LTV on a purchase.

        Assuming you only put down 3.5%, you are correct that you or the seller would have to pay the closing costs. Sorry for any confusion.

        • I stand my my comment, Simon. The only closing cost that can be financed is the upfront mortgage insurance premium. And the seller does not “have to pay the closing cost”.

  3. Rhonda, I had no idea that the only closing cost that can be financed is the mortgage insurance up front, I did know that the actual seller would not be responsible for this. I live in Oregon and I am amazed at how the housing market has fluctuated so much in the past 10 years.

    • Hi Jennifer, FHA, VA and USDA upfront mortgage insurance/funding fees can be financed. There is some pmi that can be “lender paid” or be paid by lender rebate credit. This is for standard loan products – it’s possible a lender may be offering a portfolio program where closing cost are financed.

      “Financed” can mean different things – when I say “financed” I’m referring to increasing the loan amount to cover the closing cost. As I mentioned, closing cost can be paid for by raising the interest rate to generate rebate pricing – which can be credited to the loan. In a way, this could be considered “financed” since because you are paying for the closing cost over the life of the loan with a slightly higher interest rate (typically 0.125 – 0.375% higher).

      The seller can pay for various amounts of the closing cost depending on down payment and loan program.

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