Washington State FHA Loan Requirements 2026
FHA loan limits by county, credit score requirements, down payment rules, and mortgage insurance details for Washington State home buyers in 2026.
FHA Loan Limits by Washington County (2026)
FHA loans are federally insured mortgages widely used throughout Washington State. In Washington’s expensive coastal markets — Seattle, Bellevue, Kirkland, and Redmond — FHA loans serve a critical role because their loan limits are set at a higher level than the national baseline to reflect local home prices.
| County | 1-Unit | 2-Unit | 3-Unit | 4-Unit |
|---|---|---|---|---|
| King (Seattle) | $1,063,750 | $1,361,800 | $1,646,100 | $2,045,700 |
| Snohomish (Everett) | $1,063,750 | $1,361,800 | $1,646,100 | $2,045,700 |
| Pierce (Tacoma) | $1,063,750 | $1,361,800 | $1,646,100 | $2,045,700 |
| Kitsap | $616,400 | $789,100 | $953,850 | $1,185,400 |
| Clark (Vancouver) | $701,500 | $898,050 | $1,085,550 | $1,349,050 |
| Thurston (Olympia) | $586,500 | $750,800 | $907,550 | $1,127,900 |
| Whatcom (Bellingham) | $664,700 | $850,950 | $1,028,600 | $1,278,300 |
| Spokane | $541,287 | $693,050 | $837,700 | $1,041,125 |
| Yakima | $541,287 | $693,050 | $837,700 | $1,041,125 |
| All Other Counties | $541,287 | $693,050 | $837,700 | $1,041,125 |
Most Washington counties sit at the national FHA floor. Only King, Snohomish, and Pierce (Seattle-Tacoma-Bellevue metro), along with Kitsap, Clark, Thurston, and Whatcom counties, have limits above the $541,287 floor, due to higher local median home prices. Limits are set per-county by HUD and updated annually; always confirm your exact county limit using HUD’s official FHA Mortgage Limits lookup tool before making an offer.
Washington FHA Loan Requirements Overview
| Requirement | Standard FHA | Notes |
|---|---|---|
| Credit score | 580 (3.5% down); 500–579 (10% down) | Most Washington lenders require 620–640 |
| Down payment | 3.5% | Can combine with WSHFC Home Advantage assistance |
| DTI ratio | Up to 57% with strong compensating factors | 31% front-end / 43% back-end preferred |
| Primary residence | Required | Owner-occupied only |
| Property condition | Must meet FHA Minimum Property Standards | Applies statewide, including manufactured homes |
FHA Mortgage Insurance Premiums (MIP)
| MIP Type | Rate | On a $400,000 Loan |
|---|---|---|
| Upfront MIP (UFMIP) | 1.75% of loan amount | $7,000 (typically financed) |
| Annual MIP (monthly) | 0.55%/yr (30-yr, LTV 95%+) | ~$183/mo |
MIP cancellation: FHA MIP is permanent on loans originated after June 3, 2013, with less than 10% down payment. For Washington buyers who put down 10% or more, MIP cancels after 11 years. Many Washington borrowers refinance into a conventional loan once they reach 20% equity to eliminate MIP.
FHA vs. Conventional in Washington
| Factor | FHA | Conventional |
|---|---|---|
| Min credit score | 580 | 620 |
| Down payment | 3.5% | 3–20% |
| Mortgage insurance | MIP (permanent with <10% down) | PMI (cancels at 80% LTV) |
| Max loan limit (King/Pierce/Snohomish) | $1,063,750 | Conforming limit applies (same figure) |
| Home Advantage pairing | Yes — can cover down payment + some costs | Yes — can cover down payment + some costs |
| Best for | Lower credit, gift/assistance funds, first-time buyers | 680+ credit, plans to cancel PMI, stronger assets |
WSHFC Home Advantage + FHA Combination
One popular Washington combination pairs WSHFC’s Home Advantage down payment assistance with an FHA first mortgage. Here’s how it works on a $400,000 purchase:
| Item | Amount |
|---|---|
| Purchase price | $400,000 |
| FHA down payment (3.5%) | $14,000 |
| Home Advantage assistance (3%–5% of loan) | Roughly $11,580–$19,300 |
| Net down payment from buyer | $0 (assistance can cover the full down payment) |
The Home Advantage assistance amount is based on the loan amount (not purchase price) and is structured as a deferred 0%-interest second loan rather than a traditional loan. On a $386,000 FHA loan (after 3.5% down), a 3%–5% assistance amount equals roughly $11,580 to $19,300 — enough to cover the full down payment and potentially some closing costs. Unlike Arizona’s HOME Plus, Home Advantage does not require first-time buyer status. Confirm current terms at heretohome.org.
