Maximum FHA Loan Limit in Seattle Increases to $1,037,300 in 2025

Federal housing officials announced that FHA loan limits for Seattle would increase in 2025. Other counties will also see increases. We also mentioned that HUD officials would follow suit with a similar announcement of their own.

This is good news for borrowers who plan to use this program to buy a home next year.

New FHA Loan Limit for Seattle Area: $1,037,300

In the Seattle area, the FHA loan limit for a single-family property remains at $1,037,300 in 2025. This figure applies to all of King, Pierce and Snohomish counties. Those three counties have higher loan limits than the rest of the state, due to higher home values across the Seattle area. All other counties in Washington have lower limits in 2025.

Related: 5 common questions about FHA loan in Washington state

FHA loan limits increased for all counties in Washington.

The new limits will apply to FHA loans with case numbers assigned on or after January 1, 2025, and they will remain at that level through the end of the year. (These limits are typically reviewed at the end of each year, and adjusted when rising home prices warrant it.)

As of December 2024, the median home value in Seattle is around $848,982. That’s a bit lower than the new FHA loan limit for 2025.

Today’s Seattle Mortgage Dec, 19, Thu, 2024

The following table outlines the new FHA loan limits in King, Pierce, and Snohomish counties:

Check out our mortgage loan limit tool for conventional, FHA, and VA loans, as well as the 2025 FHA loan limits for Washington State.

Fast Facts: How This Mortgage Program Works

We’ve written about the FHA loan program a lot over the years. Here’s a quick recap of the salient points from those other articles:

• The Federal Housing Administration insures these loans against default-related losses. While this insurance primarily protects Seattle mortgage lenders that generate the loans, it also results in flexible qualification requirements for borrowers.
• FHA loans require a minimum down payment of 3.5%. This appeals to borrowers with limited funds in the bank, including many first-time buyers. But the program is not limited to first-time buyers.
• This program requires borrowers to pay mortgage insurance premiums. While conventional (non-FHA) loans also require mortgage insurance in low-down-payment situations, it can be canceled when the homeowner reaches a certain equity level. The annual insurance premium for FHA loans, on the other hand, typically has to be paid for the life of the loan.
• The Federal Housing Administration has congressionally mandated limits as to the size of loans it can insure. These FHA loan limits vary by county and are reviewed every year in relation to home prices.

Related: FHA loan requirements for Washington state home buyers

Home Prices in the Metro Area Continue to Rise

So, how does the maximum FHA loan size for Seattle compare to home prices? After all, the official limits are based on median home values. So how do they stack up?

The current loan limits for 2025 were established at the end of 2024. House prices in the Seattle metro area actually dipped in the past year. The median home value as of December 2023 is just a bit lower than the maximum FHA loan limit.

Earlier this month, the real estate data company Zillow reported that the median home price in Seattle is $848,982. That was an increase of 3.1% from the same month last year.

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At Sammamish Mortgage, we offer a wide variety of mortgage programs and tools with flexible qualification criteria, including our Diamond Homebuyer Program, Cash Buyer Program, and Bridge Loans. We have been serving the entire state since 1992, as well as the broader Pacific Northwest region that includes Washington, Oregon, Colorado, and Idaho. Please contact us today with any financing-related questions you have.