Some good news today that loan limits are increasing in King, Pierce and Snohomish counties. That is good news for buyers and seller. I’ll tell you why, but first here is what is happening:
Loan limits will rise in 39 high-cost counties around the country in 2016, including three counties in Western Washington: King, Pierce and Snohomish.
Starting January 1, loan limits in the tri-county Puget Sound area will rise from $517,500 to $540,500, an increase of $23,000.
Why is this good news? Housing in this area costs more than other parts of the country, so they increased the loan limits. Loans that are under the new $540,500 limit are called conforming loans. They have lower interest rates and in general are easier to qualify for.
Lower interest rates translates into lower payments. What buyer wouldn’t enjoy a lower payment? For sellers, it means buyers can more easily afford to buy your home.
That’s a win / win in my book!