FHA Loan Requirements, Limits and Approval Tips
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2022 FHA Loan Limits in Washington

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Federal Housing Administration (FHA) loans make the goal of homeownership more attainable with lower down payment and credit score requirements compared to traditional loans and mortgages. But the amount you can borrow is limited, depending on where in the U.S. you’re looking to buy. In 2022, FHA loan limits for a single-family home in Washington range from $420,680 in rural counties to $891,250 in counties in the Seattle metro area.

Washington FHA loan limits by county

County nameOne unitTwo unitsThree unitsFour unitsMedian sales price
GRAYS HARBOR$420,680$538,650$651,050$809,150$214,000
PEND OREILLE$420,680$538,650$651,050$809,150$175,000
SAN JUAN$497,950$637,450$770,550$957,600$177,000
WALLA WALLA$420,680$538,650$651,050$809,150$325,000

How are FHA loan limits determined?

FHA loan limits are calculated annually based on conforming loan limits — the most you’re allowed to borrow while staying within the lending limit guidelines for your area — as determined by the Federal Housing Finance Agency (FHFA).

The U.S. Department of Housing and Urban Development (HUD) then uses these figures to determine FHA loan limits. The lowest limit, also called the FHA “floor,” is 65% of the national conforming loan limit, or $420,800. The highest limit, called the “ceiling,” goes up to 150% and only applies to higher-cost areas in the U.S.

The FHA loan limits in 2022 reflect an increase of 18%, ranging from $420,680 to $970,800 for a single-family FHA loan, depending on where you live.

How to qualify for an FHA loan in Washington

Whether you’re about to buy your first home or you already own one, FHA loans can help you qualify for a mortgage, especially if you have a lower-than-ideal credit score or don’t want to pay a high down payment. If it’s your first time purchasing a home, you may also qualify for further assistance through Washington’s first-time homebuyer programs.

Either way, here’s a look at the FHA loan requirements you’ll need to satisfy to apply:

  • Borrow beneath the FHA loan limit for your area: Make sure your ideal mortgage amount is under the FHA loan limit, which can vary by county or proximity to a big city.
  • A minimum down payment of 3.5%: If your credit score is 580 or higher, then you may only need to make a 3.5% down payment for a one- to four-unit, single-family or multifamily home. If it’s lower than that, your down payment increases to 10%.
  • A minimum credit score of 500: If your credit score is between 500 and 579, you may still be eligible for an FHA loan, but you’ll be required to make a down payment of at least 10% instead of the usual 3.5%.
  • Debt-to-income (DTI) ratio is 43% or less: Lenders will often require your DTI ratio — your monthly debt and spending versus your income — to be under 43%, although there are exceptions.
  • An FHA home appraisal: To determine the overall value and condition of your home, an FHA home appraisal must occur before you’re considered to be eligible.
  • Mortgage insurance: You’ll need to pay two separate types of mortgage insurance — the annual mortgage insurance premium (MIP), which typically runs between 0.45% and 1.05% of your loan total, and the upfront mortgage insurance premium (UFMIP), which is 1.75% of your loan total. Both amounts are absorbed into your mortgage payments.
  • Occupancy: You must live in the home that you bought with an FHA loan as your primary residence for at least 12 months after purchase. FHA loans typically can’t be used to purchase vacation or investment properties.

Buying a multifamily property with an FHA loan

You can also use an FHA loan to purchase a multifamily home, up to four individual units. As long as you live in one of the units for at least a year after purchase, you could rent out the rest for income. You’ll need to meet the same FHA loan requirements, including having a minimum credit score of 580 and the ability to make a down payment of at least 3.5%.

FHA lenders in Washington

Here’s a look at five highly rated mortgage lenders that are licensed to operate in Washington.

Lender name LT rating Minimum FHA credit score 
Lower Mortgage10/10580
Veterans United10/10620
Rocket Mortgage9.5/10580
Guild Mortgage9/10540


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