FHA Mortgage Limits Increased

FHA insured mortgage limits were increased yesterday on owner occupied two-to-four family dwelling units. Although major news outlets in Seattle reported that single family home mortgage limits had also been increased, Dale Golder, Branch Manager Mortgage Consultant of Windermere Mortgage Services in University Place, indicated that such increases had not yet been made. But, she added that, along with “dropping the FHA approved condo list and a further reduction in the minimum down payment” required to obtain a FHA loan, those changes were anticipated. Golder said, “Congress would ultimately make the final decision.”
According to Golder, “currently the FHA minimum down payment is 3%, but it is anticipated that it will be reduced to 1% to 1½%.” The FHA approved condo list relates to projects which are preapproved by FHA. But, with so many reasonable priced projects being condo conversions which hadn’t had the opportunity to be preapproved by FHA, it would seem that Congress is attempting to make affordable housing easier for the average homeowner to obtain. The same could be said for the reduction in the down payment requirements.
As to changes with two-to-four family residences, maximum mortgage limits were increased to:

King & Pierce County One-Family mortgage limits remained the same at $362,790; Two-Family was increased to $436,000; Three-Family was increased to $529,750; and Four-Family mortgage limites were increased to $611,250.

In Kitsap County One-Family limits remained unchanged at $361,000; Two-Family were increased to $406,600; Three-Family to $494,000, and Four-Family was increased to $570,000.

In Thurston County One-Family remained unchanged at $261,824; Two-Family limts are
$294,897; Three-Family is $358,286; and Four-Family is $413,407.

Golder added that the changes were increased to better reflect medium priced properties in each respective area.