Are you hearing a lot about “loan limits” while shopping in Everett and wondering why they matter? You want the best rate, a smoother approval, and a payment that fits your budget. Understanding conforming loan limits helps you plan your offers and avoid last‑minute surprises. In this guide, you’ll learn what the limits are, how they work in Snohomish County, how they compare to nearby King County, and what to do if your price pushes you into jumbo territory. Let’s dive in.
What are conforming loan limits?
Conforming loan limits set the maximum mortgage size that Fannie Mae and Freddie Mac will purchase from lenders. Loans at or below the county limit are called conforming. Anything above that is generally a jumbo loan.
This matters because loan tier affects interest rate pricing, down payment options, underwriting standards, and the number of lenders willing to work with you. Conforming loans often come with more flexible programs and easier access for many buyers.
2024 limits at a glance
As of 2024, the Federal Housing Finance Agency (FHFA) set the national baseline conforming loan limit for a 1‑unit primary residence at $766,550. For designated high‑cost counties, the 1‑unit ceiling is $1,149,825. Limits for 2–4 unit properties scale higher and are updated each year.
FHFA sets these limits by county. That means neighboring counties can have different ceilings, which is why it’s important to verify the current year’s numbers for the exact county and property type you’re buying.
Why limits matter in Snohomish County
Your loan tier can affect several parts of your financing:
- Interest rates: Conforming loans are often priced more competitively than jumbo loans, though the gap changes with the market and your profile.
- Down payment: Jumbo loans typically need larger down payments or lower loan‑to‑value ratios. Conforming programs may offer lower down payment options for qualified borrowers.
- Mortgage insurance: Conforming loans with over 80% LTV usually require PMI, which you can request to remove when you reach 20% equity. Jumbo loans may use different structures or require more equity.
- Underwriting: Jumbo loans often expect higher credit scores, lower debt‑to‑income ratios, and more months of cash reserves.
- Program access: Many popular low down payment and first‑time buyer options are built for conforming loan sizes, not jumbo.
If your effective loan amount ends up above $766,550 in 2024, your loan becomes jumbo in counties that use the baseline. That can happen if your down payment is very small or if financed costs push the loan amount higher. Knowing where your price and down payment place you helps you structure winning offers without unwelcome surprises.
Everett vs. King County
Snohomish County, including Everett, is closely tied to the Seattle metro economy, yet it has historically posted lower median prices than King County overall. According to FHFA patterns, King County has often been designated high‑cost, which means a higher conforming limit than the national baseline. Snohomish County has typically not held that designation and therefore uses the baseline limit.
Why that matters: a buyer who moves north for more value can still face jumbo classification in Snohomish County when purchasing larger single‑family homes, new construction, or properties near major commute corridors. If you are near the upper 700s to low 800s price points with a smaller down payment, you may need to plan carefully to keep your loan amount under the conforming ceiling.
Buyers exploring multi‑unit properties should also note that 2–4 unit conforming limits are higher than the 1‑unit limit. That difference can help you stay conforming if house‑hacking a duplex or triplex fits your goals.
When your price exceeds the limit
If your target property would push you over your county’s conforming ceiling, you still have several paths forward. Each comes with tradeoffs:
- Jumbo mortgage: Larger loan amounts with stricter guidelines. This can make sense if you have strong credit and cash reserves, and you prefer not to increase your down payment.
- Increase down payment: Add cash to keep the loan at or below the conforming limit and preserve conforming pricing. The tradeoff is higher cash due at closing.
- Second loan or piggyback: Combine a primary conforming mortgage with a second mortgage or HELOC. You may keep the first loan conforming, but you add complexity and a blended cost.
- Government or portfolio programs: VA, USDA, and FHA have separate rules and limits. Some local lenders also offer portfolio jumbo products for well‑qualified borrowers.
- Different property type: Multi‑unit conforming limits are higher. A duplex or triplex could allow a conforming structure that a single‑family purchase cannot at the same overall price point.
Underwriting differences to expect
Moving from conforming to jumbo often changes what lenders require. Plan ahead for:
- Credit score: Jumbos often expect higher scores.
- Cash reserves: Jumbos commonly require 6–12 months of reserves.
- Debt‑to‑income ratio: Tighter caps than many conforming programs.
- Documentation: More detailed income and asset verification.
- Rate variability: The jumbo rate premium can be small or significant depending on market conditions and your profile.
Offer strategy near the line
If your budget sits close to the conforming limit, structure your search and offer with intent:
- Price targets: Focus on homes where your planned down payment keeps the loan under the limit, or be ready with a jumbo path.
- Pre‑approval scenarios: Ask your lender to model multiple down payment and program options so you can pivot quickly.
- Clear timelines: Jumbo underwriting can require more time. Build that into your offer timeline and communicate expectations.
- Contingencies: Make your financing type and timing clear so sellers understand your path to close.
Step‑by‑step checklist
Use this quick checklist to plan your purchase in Everett and across Snohomish County:
- Check the current FHFA conforming limit for Snohomish County, including 2–4 unit limits if relevant.
- Compare your target price to the limit and run pre‑approval scenarios with different down payment levels.
- Get quotes from multiple lenders to compare conforming versus jumbo pricing and program fit.
- If a jumbo is likely, gather strong documentation early: credit report, two years of tax returns, and bank statements showing reserves.
- Consider alternatives like a second mortgage or a multi‑unit property and weigh the long‑term payment impact.
- If you are a first‑time buyer, explore Washington State assistance programs and note that many are designed for conforming loan sizes.
Local takeaways for Everett buyers
Snohomish County generally follows the national baseline conforming limit. In 2024, that means $766,550 for a 1‑unit home. Prices near the upper 700s and into the 800s can push you toward jumbo financing if your down payment is modest. Planning your price targets, down payment, and financing type ahead of time helps you write stronger offers and keep your monthly budget on track.
If you are considering new construction or townhomes in the Bothell, Lynnwood, Monroe, or Everett corridor, the right structure can make the difference between conforming and jumbo. I help buyers weigh these options alongside location, builder timelines, and long‑term plans so you can move forward with confidence.
Ready to map out your numbers and strategy before you tour homes? Reach out to Jenell Steltz for local guidance and a calm, results‑driven plan that fits your goals.
FAQs
What is a conforming loan limit in Snohomish County?
- It is the maximum loan size that Fannie Mae and Freddie Mac will purchase for the county, set annually by FHFA and applied by property type.
What is the 2024 baseline conforming limit?
- For a 1‑unit home in 2024, the national baseline is $766,550, with higher limits for 2–4 unit properties.
How does Snohomish County compare to King County?
- Snohomish County typically uses the baseline limit, while King County has often been designated high‑cost with a higher cap.
When does my loan become jumbo in Everett?
- Your loan is jumbo when the loan amount exceeds Snohomish County’s conforming limit for the property type you are buying.
Will a jumbo loan always have a higher rate?
- Not always. Jumbos often carry a rate premium, but it depends on market conditions and your credit, income, and reserves.
Can financed costs push me into jumbo status?
- Yes. In some structures, financed costs add to your loan amount and can push you over the conforming ceiling.
Where can I verify the current county limits?
- Check the latest FHFA county limits for the year you plan to buy and confirm details with your lender before writing offers.
