Seattle-area home buyers relying on loans backed by the Federal Housing Administration may be able to pay more next year.
The FHA is raising its loan limits for King, Snohomish and Pierce counties to adjust for rising median home prices, it announced earlier this month.
The loan limit in 2015 for a single-family home is $517,500, up 2.3 percent from $506,000 this year. Limits were raised by the same percentage on properties with two to four units.
FHA loans appeal to low-income and first-time buyers, because they allow down payments as low as 3 percent. Unlike most loans, the down payment can come from a gift or grant.
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Next year’s loan limits remain lower than they were from 2010 to 2013 under the Housing and Economic Recovery Act, when the limit for a one-unit property in the tri-county area was $567,500.