In 2022, the FHA loan limits in Massachusetts range from $420,680 in lower price counties to $970,800 in higher-priced counties. Counties with lower FHA loan limits include Berkshire, Hampshire, Franklin, and Hampden. Higher FHA loan limit counties include Nantucket, Dukes, and Essex. Counties with higher living expenses tend to have higher FHA loan limits to accommodate the higher cost of living. Let’s take a look at how FHA loan limits vary by other counties and home types.
Editorial Note: All data regarding loan limits is pulled directly from the FHA and is current as of 2022. These numbers are subject to change and evaluated by the FHA each year.
Massachusetts FHA Loan Limits by County and Home Type
How to Interpret the FHA Loan Limit Data
Counties like Duke and Nantucket had the highest median sales prices and also have the highest FHA loan limits in Massachusetts. As you can see from the data, FHA loan limits also increase based on the number of units. The highest FHA loan limits are referred to as the “ceiling”, while the lowest FHA limits are referred to as the “floor”.
FHA loan limit ceilings in Massachusetts :
- $970,800 – single unit property
- $1,243,050 – two-unit property
- $1,502,475 – three-unit property
- $1,867,275 – four-unit property
FHA loan limit floors in Massachusetts:
- $420,680 – single unit property
- $5368,650 – two-unit property
- $651,050 – three-unit property
- $809,150 – four-unit property
There is roughly a 100% price difference between the FHA loan limit floor and ceiling limit in Massachusetts. This large differential indicates a large disparity in housing prices and cost of living between counties in Massachusetts. This price variance gets even larger between properties with more units.
Recommended Reading: FHA Loan Limits Florida
Qualifying for an FHA Loan in Massachusetts
It’s worth noting that property taxes in Massachusetts are roughly 20% above the national average. The average single-family property tax bill in Massachusetts in 2022 was roughly $6,719. This can impact borrower’s ability to qualify for an FHA loan. Below are the standard qualifications for borrowers to pass in order to get an FHA loan in Massachusetts.
- FICO score at least 580 = 3.5% down payment
- FICO score between 500 and 579 = 10% down payment
- Mortgage insurance is required
- DTI of less than 43%
- The home must be the borrower’s primary residence
- The borrower must be employed and have a steady income
FHA Loan Limit Example for Massachusetts
FHA loan limits in Massachusetts are subject to change every year based on conventional loan limit changes set by the FHFA. Conventional mortgage limit changes reflect changes in real estate prices across the United States for the past year. The FHFA uses changes in real estate prices to determine new conforming loan limits for the year. For 2022, the conforming loan limit in Massachusetts was $647,200.
The FHA uses a minimum loan limit that is 65% of the conforming loan limit to determine the FHA loan limit floor for that year. In 2022, the FHA loan limit floor in Massachusetts was $420,680. Loan limits will vary based on median home sale prices in each county, hence why you see counties with much higher FHA loan limits.
Massachusetts FHA Lenders
Below are some of the most popular FHA lenders in Massachusetts along with their minimum FHA credit score requirements in order to qualify.
- Ross Mortgage Company – 580
- MBA Mortgage Corporation – 560
- Poli Mortgage Group – 580
- Shant Banosian Guaranteed Rate – 560
- Drew Mortgage Associates – 580
What credit score do you need to buy a house in MA?
The credit score you need will depend on the type of mortgage you are getting. For most FHA lenders in Massachusetts, a minimum credit score of 580 is required. However, there are lenders who will take a lower credit score if you can put down a large down payment.