Shopping for a home in Plateau South and wondering whether your mortgage will be conforming or jumbo? You’re not alone. With Bellevue area prices often north of seven figures, the type of loan you use can shape your rate, paperwork, and closing timeline. In this guide, you’ll see what each loan type means, the 2025 King County limit, simple scenarios, and a clear checklist to help you decide. Let’s dive in.
Conforming vs jumbo basics
A conforming loan is a conventional mortgage at or below the county limit set by the Federal Housing Finance Agency. These loans are eligible for purchase by Fannie Mae and Freddie Mac, which helps standardize pricing and guidelines. You can review the agency’s latest limits in the FHFA announcement and the CFPB’s consumer overview of jumbo loans.
A jumbo loan is any mortgage above the local conforming limit. Jumbos are priced and underwritten by private lenders, so credit scores, reserves, and documentation may be stricter. The key rule to remember: the threshold is based on your loan amount, not the purchase price. If you buy at a higher price but put enough money down to keep the loan at or under the limit, you can still use a conforming loan.
2025 King County loan limit
For 2025, the FHFA baseline one‑unit limit is $806,500 and the national ceiling is $1,209,750. King County is a high‑cost county, and the one‑unit limit here is $1,037,300. You can confirm local figures with the FHFA release and a Washington lender’s 2025 county loan‑limit list.
Bellevue area prices frequently reach seven figures, which means many Plateau South purchases sit near or above the conforming threshold. That often pushes buyers to either increase their down payment to stay conforming or use a jumbo loan. Recent reporting also shows million‑dollar sales are widespread across King County, underscoring this dynamic for local buyers and sellers. See the Seattle Times’ coverage of the surge in million‑dollar home sales.
Why the loan type matters
Underwriting and documentation
- Conforming: Lenders follow Fannie Mae and Freddie Mac standards. Expect predictable credit, debt‑to‑income, and document rules, with options for lower down payments in some cases. The CFPB outlines these norms in its conventional loan overview.
- Jumbo: Lenders set their own guidelines. Many require higher credit scores, lower debt‑to‑income ratios, and larger cash reserves. Process can be more manual and take longer. See a summary of common differences in this Investopedia guide.
Rates and total cost
Historically, jumbo rates tended to be higher than conforming, but the spread moves with the market. The Freddie Mac survey placed the average 30‑year fixed at about 6.30 percent in early October 2025, useful as a conforming reference point (Freddie Mac PMMS). Industry trackers often show jumbo rates somewhat higher, though sometimes competitive, depending on lender strategy and your profile (Bankrate jumbo survey).
Down payment and PMI
- Conforming loans typically require private mortgage insurance (PMI) when your down payment is under 20 percent, with standardized rules for when PMI can be removed. The CFPB explains PMI basics in its conventional loan guide.
- Jumbo PMI practices vary by lender. Many programs avoid standard monthly PMI and instead require larger down payments or price the loan differently. Ask each lender how they handle mortgage insurance or alternatives on jumbo products.
Appraisals and timing
Higher‑dollar jumbo loans may require more detailed appraisal reviews and additional documentation. That can add time and cost. Plan your offer timeline accordingly.
Real Bellevue scenarios
Assumptions for illustration only, based on a market snapshot in early October 2025: Freddie Mac 30‑year fixed at about 6.30% for conforming reference, and a representative jumbo rate of 6.84% from industry surveys. Sources: Freddie Mac PMMS and Bankrate jumbo survey.
Example A – conforming in King County
- Price: $1,200,000
- Down payment: 20% ($240,000)
- Loan amount: $960,000, which is under the $1,037,300 King County limit, so this is conforming.
- Estimated monthly principal and interest at 6.30%: about $5,940. Taxes, insurance, HOA, and any PMI are extra.
Example B – jumbo for the same home
- Price: $1,200,000
- Down payment: 10% ($120,000)
- Loan amount: $1,080,000, which exceeds the county limit, so this is jumbo.
- Estimated monthly principal and interest at 6.84%: about $7,005–$7,100. Taxes, insurance, and any lender‑specific fees are extra.
Takeaway: A slightly larger down payment that keeps your loan under the county limit can reduce monthly costs and streamline underwriting.
Your decision checklist
- Estimate your loan amount: price minus down payment. Compare it to the $1,037,300 King County limit.
- Ask a lender for two quotes: one conforming scenario and one jumbo. Request rate, fees, and how they handle PMI.
- If you are near the limit, model how an extra down payment affects cost and approval speed.
- For jumbo options, ask about minimum credit score, debt‑to‑income cap, and required reserves.
- Compare strategies: standard conforming with PMI, a jumbo with no PMI, or a piggyback second mortgage designed to keep the first loan conforming. Learn how piggybacks work in this Investopedia explainer.
- Build a timeline that accounts for appraisal and underwriting differences, especially for jumbo.
Seller insights
Pricing that enables typical buyers to stay conforming can broaden your bidder pool and may speed up approvals. At luxury price points where jumbo or cash is common, expect a smaller but well‑qualified set of buyers and a different negotiation rhythm. Recent reporting on the rise of million‑dollar sales in King County reflects what we see across the Eastside, including Plateau South.
Next steps
Choosing between conforming and jumbo is about fit. With decades of Eastside experience, we help you match financing to the lifestyle you want in Plateau South, then craft an offer that moves with confidence. Ready to plan your path? Connect with the Carrie Haymond team for a calm, data‑driven game plan.
FAQs
What is the 2025 conforming loan limit for King County, WA?
- For a one‑unit home in King County, the 2025 conforming limit is $1,037,300.
Can I buy over $1 million in Plateau South and still use a conforming loan?
- Yes, if your down payment is large enough to keep the loan amount at or below $1,037,300.
Are jumbo mortgage rates always higher than conforming rates?
- Not always. The spread changes with the market, lender strategy, and your profile, so get several quotes.
Do jumbo loans require PMI in Bellevue’s Plateau South?
- There is no universal rule. Many jumbo programs avoid standard monthly PMI and instead use different pricing or higher down payments.
Will a jumbo loan slow down my closing timeline?
- It can. Jumbo loans often require more documentation and appraisal review, so start early and build in extra time.
