Saltbox & Seam · Massachusetts Mortgage & Housing Research

Nantucket and Dukes County Mortgages: High-Cost Ceilings, 2% Land Bank Exemption and Jumbo Rules

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Updated October 2026

A Nantucket or Martha's Vineyard purchase needs two separate cash calculations: the money required by the mortgage and the money required by the transfer. High-cost conforming eligibility can reduce the need for jumbo financing, but it does not erase Land Bank charges, insurance expenses or reserve requirements. Saltbox & Seam organizes Islands purchases around those distinctions before a buyer commits to an offer.

Understand the high-cost ceiling

For 2026, the national baseline conforming limit is $832,750, while the maximum high-cost ceiling for a one-unit property reaches $1,249,125. Nantucket and Dukes County buyers should verify their applicable county and unit-count limit through FHFA Loan Limits.

Conforming status follows the loan amount, not simply the purchase price. A property priced above the county ceiling may still use a conforming mortgage when the down payment brings the loan within the limit.

| Financing question | Why it matters |

| Principal residence or second home? | Changes occupancy requirements and pricing |

| Loan above the county limit? | May require jumbo underwriting |

| Significant rental activity? | Can change property classification |

| Assets remaining after closing? | Supports required reserves and liquidity |

Jumbo reserve, credit and documentation rules vary by lender. Compare complete terms rather than assuming every jumbo loan requires the same down payment. The Consumer Financial Protection Bureau explains how to compare Loan Estimates beyond the headline rate.

Budget the 2% Land Bank charge carefully

Nantucket and Martha's Vineyard generally impose a 2% Land Bank transfer fee, typically borne by the buyer. Exemptions and qualifying first-time-buyer provisions differ between the Islands. An exemption may depend on occupancy, ownership history, transaction value, documentation and continued compliance; it is not a universal discount for every first purchase.

Have the closing attorney establish the applicable exemption and resulting charge before finalizing cash to close. Keep this separate from Massachusetts deeds excise, generally seller-paid, and from lender closing costs. Barnstable County's special excise rate should not be automatically carried over to Dukes or Nantucket County.

Start the calculation with the closing cost estimator, then add the transaction-specific Land Bank amount.

Protect the purchase timeline

The Offer to Purchase can establish obligations before the P&S is signed. Align financing deadlines with appraisal access, insurance placement and Title 5 documentation where septic serves the property.

For seasonal-use decisions, compare payment stability using the ARM versus fixed calculator. Keep reserves for maintenance and transportation-related service costs outside the down payment budget.

Compare Current Mortgage Rates

Compare current APRs, points, fees, and estimated monthly payments from participating lenders below.

Loan Program Comparison: 2026 Benchmarks

Nantucket and Dukes County Mortgages: High Cost Ceilings, 2% Land Bank Exemption and Jumbo Rules — Above the applicable conforming limit, compare jumbo reserve requirements, credit standards, down payment and lender-specific pricing rather than assuming agency terms.

Historical 2025 one-unit comparison: conforming $806,500; FHA floor $524,225. County and unit-count limits can differ.

Loan programDown payment / equity2026 one-unit baselineCosts and page-specific comparison
JumboLender-specific cash and reservesAbove applicable conforming limitLender-specific pricing and insurance
Conventional3%–5% subject to eligibility$832,750PMI generally below 20% down
FHA3.5% at 580+; 10% at 500–579$541,287 floor1.75% upfront MIP; 0.55% annual for >95% LTV, base loan ≤$726,200, term >15 years
VA0% for eligible borrowersNo VA limit with full entitlementNo monthly PMI; funding fee unless exempt
USDA0% for eligible borrowersIncome, address and repayment eligibilityGuarantee and annual fees; confirm current schedule
Home Equity / RefinanceEquity and underwriting dependentProperty and lender dependentCompare closing costs, term and break-even

Sources: FHFA limits; HUD FHA limits.

Editorial Methodology & Primary Sources

Verification date: Not recorded; check the primary source and lender timestamp before relying on an estimate.

Rate comparisons use participating lender feeds, not a whole-market survey or guaranteed offers. Freddie Mac PMMS is a market benchmark, not a personalized quote. Calculator models rely on published regulatory formulas and disclosed assumptions rather than fabricated first-person loan testing.

Monthly principal and interest use the amortization formula P × r / (1 − (1 + r)−n), where r is the monthly note rate and n is the number of payments; at zero interest use P / n. PITI adds monthly property taxes and homeowners insurance; PMI is separate. APR includes applicable finance charges under Regulation Z and is not the note rate used for payments. Compare lender Loan Estimates for actual APR and fees.

The payment snapshot uses illustrative annual taxes of 1% of home price, $1,200 insurance and 0.5% PMI below 20% down, not verified local quotes. Other calculators disclose their inputs and assumptions. Published guidance and lender feeds may change independently; confirm current program rules, taxes and offers before a decision.