You can put $17,500 down on a $500,000 Fairhaven condo using FHA financing. But only if the complex appears on HUD’s approved list, and most South Coast complexes don’t. That’s the catch nobody runs the numbers on before getting excited about 3.5% down.
The fha loan limits south coast Massachusetts 2026 are $862,500 for a single-family home in Plymouth County (Marion, Mattapoisett, Rochester, Wareham) and $472,030 in Bristol County (New Bedford, Fairhaven, Acushnet, Dartmouth), according to HUD’s 2026 FHA Mortgage Limits. That Plymouth County number shocks people. It’s tied to the Boston-Cambridge-Newton MSA, which pulls the ceiling way up. Bristol County sits at the national floor. Two towns 15 minutes apart, two very different borrowing ceilings.
If you’re a first-time buyer trying to figure out realistic down payments in New Bedford, FHA might be the path. But the details matter more than the headline.
Key Takeaways
- Plymouth County FHA limit is $862,500; Bristol County is $472,030 (HUD, 2026)
- A 3.5% down payment on a $475K home in Mattapoisett is $16,625
- Monthly MIP on a $450K FHA loan adds roughly $208/month for at least 11 years
- Very few South Coast condo complexes have active FHA approval; check HUD’s list before touring
Why are FHA loan limits so different between Plymouth and Bristol County?
Plymouth County’s 2026 FHA single-family limit of $862,500 reflects its inclusion in the Boston-Cambridge-Newton Metropolitan Statistical Area (HUD, 2026). Bristol County, classified separately, sits at the national floor of $472,030. That $390,470 gap creates real confusion for buyers shopping towns that border each other.
Marion and Mattapoisett are in Plymouth County. Drive 10 minutes south to Fairhaven or Acushnet, and you’re in Bristol County with a much lower ceiling. Rochester is Plymouth County. Dartmouth is Bristol County.
This matters because a buyer looking at a $525,000 ranch in Mattapoisett Village can use FHA. The same buyer looking at a similar price point in North Dartmouth cannot, because $525K exceeds Bristol County’s $472,030 cap. I’ve watched buyers tour homes in both towns on the same Saturday without realizing FHA only works for one of them.
Here’s the full breakdown:
| County | Towns covered | 2026 FHA limit (1-unit) | 2-unit | 3-unit | 4-unit |
|---|---|---|---|---|---|
| Plymouth | Marion, Mattapoisett, Rochester, Wareham | $862,500 | $1,103,750 | $1,333,750 | $1,658,125 |
| Bristol | New Bedford, Fairhaven, Acushnet, Dartmouth | $472,030 | $604,400 | $730,525 | $907,900 |
Source: HUD FHA Mortgage Limits, 2026.
Those multi-unit numbers are worth a second look if you’re considering a multi-family in New Bedford. A $604,400 FHA cap covers a large chunk of New Bedford’s two-family inventory.
What does the 3.5% FHA down payment actually look like on a South Coast home?
On a $475,000 single-family in Mattapoisett, the FHA minimum down payment is $16,625 (FHA Single Family Housing Policy Handbook, 2024). That’s the 3.5% floor for buyers with a 580+ credit score. Below 580, you’re looking at 10% down.
Here are real numbers for actual price points buyers hit on the South Coast right now:
| Property | Purchase price | 3.5% down | Base loan amount | Upfront MIP (1.75%) | Total loan |
|---|---|---|---|---|---|
| 2BR condo, Fairhaven Center | $350,000 | $12,250 | $337,750 | $5,911 | $343,661 |
| 3BR ranch, Acushnet | $420,000 | $14,700 | $405,300 | $7,093 | $412,393 |
| 3BR colonial, Mattapoisett | $475,000 | $16,625 | $458,375 | $8,022 | $466,397 |
| 4BR cape, Marion (Point Rd area) | $650,000 | $22,750 | $627,250 | $10,977 | $638,227 |
The upfront MIP (1.75% of the base loan) gets financed into the loan. You don’t write a check for it at closing, but it increases your balance and monthly payment.
“Buyers looking at Marion or Mattapoisett are often surprised the FHA limit covers homes well above $800K, which means FHA is a real option even in the Tri-Towns,” says Christine Medeiros, who has closed over 250 transactions across the South Coast.
In my 23 years selling in the Tri-Town area, I’ve seen the assumption that FHA is “only for starter homes in New Bedford” cost buyers thousands. A young couple last year assumed they needed conventional for a $510K Mattapoisett cape. They qualified for FHA with less down and a lower rate. The math changed everything.
How much does FHA mortgage insurance (MIP) really cost per month?
For a 30-year FHA loan with less than 5% down, the annual MIP rate is 0.55% of the loan balance (HUD Mortgagee Letter 2023-05). On a $450,000 loan, that’s roughly $206 per month added to your payment. And it stays for the life of the loan unless you refinance into conventional later.
That last part trips people up. With conventional financing, PMI drops off once you hit 20% equity. FHA’s annual MIP never drops off on loans originated with less than 10% down. Put 10% or more down, and MIP expires after 11 years.
Here’s a monthly payment comparison for a $420,000 home in Acushnet at a 6.5% interest rate:
| FHA (3.5% down) | Conventional (5% down) | |
|---|---|---|
| Down payment | $14,700 | $21,000 |
| Loan amount (incl. upfront MIP for FHA) | $412,393 | $399,000 |
| Principal + interest | $2,607 | $2,522 |
| Monthly MIP or PMI | $186 | ~$160 |
| Property taxes (est.) | $350 | $350 |
| Homeowner’s insurance | $140 | $140 |
| Total monthly | $3,283 | $3,172 |
The FHA payment is about $111 more per month. But FHA required $6,300 less cash at closing. For a first-time buyer scraping together every dollar, that trade-off often makes sense for the first few years before refinancing.
Does that $111/month justify the lower entry cost? For a buyer choosing between New Bedford’s neighborhoods where median prices sit around $370K and a Tri-Town cape at $500K+, the answer depends on cash reserves.
Which South Coast condo complexes are FHA-approved?
This is where FHA gets tricky. HUD maintains a Condo Project Approval list, and a condo must appear on it with active status for an FHA buyer to finance a unit there. Most South Coast complexes are not on the list.
As of mid-2026, searching HUD’s database for Bristol and Plymouth County condos returns a thin handful of approved projects. The majority of Fairhaven Center’s condo conversions, the older complexes along Route 6 in Dartmouth, and the townhome clusters near Mattapoisett’s harbor are not listed. New construction off Weweantic River in Marion (where a luxury development broke ground in early 2026, per Sippican Week) won’t have FHA approval unless the developer applies.
How to check:
- Go to HUD’s condo lookup tool
- Search by state (MA), county (Plymouth or Bristol), and city
- Look for “Approved” status with a current expiration date
- If the complex shows “Expired” or doesn’t appear at all, FHA financing isn’t available for that unit without a new application process
A condo association can apply for FHA approval, but it requires meeting HUD guidelines on owner-occupancy ratios (at least 50%), reserve funding, insurance coverage, and more. Some associations won’t bother because the process takes months and most of their buyers use conventional.
If you’ve found a condo you love and it’s not on the list, your options are conventional financing or asking the HOA to pursue approval. Worth having that conversation before you fall in love with a second-floor unit at a complex that will never qualify.
How does FHA compare to conventional financing on the South Coast?
FHA wins on down payment and credit flexibility. Conventional wins on long-term cost and flexibility with condos (Consumer Financial Protection Bureau, 2024). The right choice depends on your cash, credit score, and what you’re buying.
| Factor | FHA | Conventional |
|---|---|---|
| Minimum down | 3.5% (580+ score) | 3% (some programs) |
| Credit score floor | 500 (with 10% down) | 620 typical |
| Mortgage insurance | Life of loan (< 10% down) | Drops at 80% LTV |
| Condo restrictions | Must be HUD-approved | Any complex |
| 2026 loan limit, Plymouth Co. | $862,500 | $862,500 (conforming) |
| 2026 loan limit, Bristol Co. | $472,030 | $862,500 (conforming) |
That last row is the sleeper. Conventional conforming limits follow FHFA, not HUD, and the 2026 conforming limit for Plymouth and Bristol counties is $862,500 (FHFA, 2026). So a Bristol County buyer wanting a $550K Dartmouth home can use conventional but cannot use FHA. This matters a lot if you’re comparing a $520K Padanaram colonial against a $470K listing in Acushnet.
For buyers with credit scores in the mid-600s, FHA typically offers better rates than conventional. Once you’re above 740, conventional pricing improves substantially.
Can you use FHA for a multi-family or investment property on the South Coast?
Yes, with one condition: you must live in one of the units as your primary residence for at least the first 12 months (HUD Handbook 4000.1, 2024). FHA covers 2-, 3-, and 4-unit properties, and the loan limits scale up accordingly.
In Bristol County, the 2026 FHA limit for a 2-unit property is $604,400. New Bedford’s two-family housing stock, concentrated in neighborhoods like the North End, South End, and near Acushnet Avenue, frequently lists between $350K and $550K. That’s well within the FHA cap.
Plymouth County’s 2-unit limit of $1,103,750 is almost academic for most South Coast multi-family properties. You’d be hard-pressed to find a duplex in Wareham or Rochester priced anywhere near that ceiling.
The owner-occupancy requirement is the key. You can’t buy a New Bedford triple-decker with FHA and rent out all three units from day one. Live in one, rent the others, and the rental income can even help you qualify.
Frequently asked questions
Is FHA available for homes in Marion and Mattapoisett MA?
Yes. Both towns are in Plymouth County, where the 2026 FHA loan limit is $862,500 for a single-family home (HUD, 2026). That covers virtually every single-family listing in the Tri-Towns. The 3.5% minimum down payment on an $800K Marion waterfront home would be $28,000.
What’s the FHA loan limit in Bristol County MA for 2026?
The 2026 FHA limit for a single-family home in Bristol County (covering New Bedford, Fairhaven, Acushnet, and Dartmouth) is $472,030 (HUD, 2026). For a 2-unit property, it’s $604,400. Homes priced above these caps require conventional or jumbo financing.
How long does FHA mortgage insurance last?
For borrowers putting less than 10% down, FHA annual MIP lasts the entire life of the loan (HUD Mortgagee Letter 2023-05). The only way to remove it is to refinance into a conventional loan once you’ve built 20% equity. Borrowers with 10% or more down see MIP expire after 11 years.
Can I buy a condo with an FHA loan on the South Coast?
Only if the condo complex has active HUD approval. Check HUD’s condo lookup tool before touring. Most South Coast complexes in Fairhaven, Dartmouth, and Mattapoisett lack current approval, which means FHA buyers are limited to the few that do or need to pursue conventional financing.
Is FHA or conventional better for a first-time buyer in Massachusetts?
It depends on cash and credit. FHA requires 3.5% down with a 580 credit score; conventional typically needs 620+ and 3-5% down (CFPB, 2024). FHA’s advantage is lower upfront cash. Conventional’s advantage is no lifetime mortgage insurance and no condo restrictions. Buyers above 740 credit generally save money with conventional.
Your next step
Pull up HUD’s loan limit lookup and type in the county for the town you’re considering. Know your ceiling before you start touring. If you’re eyeing a condo, search the HUD condo approval database on the same afternoon.
Then get a pre-approval letter from a lender who does FHA loans in both Plymouth and Bristol County. Not all lenders handle FHA volume regularly, and working with one who understands the South Coast’s split-county quirks saves real headaches. The Marion housing market moves fast enough that showing up without a letter means showing up late.
The numbers are clear. FHA works on the South Coast, even for homes well above $500K in Plymouth County. The limits, the math, and the condo catch are all knowable in advance. Know them.
