If you’re buying in Essex, Middlesex, Norfolk, Plymouth or Suffolk county, 3 percent down on a conventional loan works only up to a price of about $858,500. Above that, the minimum steps up, because Fannie Mae doesn’t allow 97 percent financing on a high-balance loan. On a $900,000 house the conventional minimum is $45,000, not $27,000.
In Worcester County, the limit that catches buyers is usually FHA. FHA’s 3.5 percent minimum works only up to about $564,900 there. If you’ve been saving toward “3 percent down” like it’s a universal rule, you can come up short right when you go to write an offer.
What Makes a Loan High-Balance in Massachusetts?
The loan’s size decides it, measured against two limits. The 2026 baseline conforming limit for a one-unit home is $832,750. In the five Greater Boston counties, the limit for the same home goes up to $962,550. A loan between those two numbers is called high-balance.
You only find that band in high-cost counties. In Worcester County the conforming limit is the $832,750 baseline itself, so there’s no high-balance band at all. Both limits reset every January, and our page on 2026 conforming loan limits has the full picture.
Why Can’t You Get 97 Percent on a High-Balance Loan?
Fannie Mae rules it out in plain words. Its 97 percent loan-to-value FAQ says adjustable-rate mortgages and high-balance loans aren’t eligible for 97 percent financing. Its Eligibility Matrix, dated August 5, 2026, says the same. So you can’t borrow 97 percent once that loan would land above $832,750.
Even below that line, 3 percent has conditions. It’s for a fixed-rate loan on a one-unit home you’ll live in, and you need either a first-time buyer on the loan or to qualify for HomeReady on income. Divide $832,750 by 0.97 and you get the ceiling, about $858,500.
What’s the Minimum Down Payment on a $900,000 House?
On the conventional side, 3 percent down is $27,000, which leaves an $873,000 loan. That’s over $832,750, so the loan is high-balance and 97 percent is off the table. The conventional minimum moves to 5 percent, or $45,000. Same house, $18,000 more cash.
FHA is the other route. The Greater Boston FHA limit is also $962,550, so FHA’s 3.5 percent still works at this price, with a credit score of 580 or higher. That’s $31,500. The trade-off is FHA’s own mortgage insurance, so you’re choosing less cash up front against a different long-term cost. Here’s how the minimums compare in Greater Boston, by our math.
| Price | Conventional minimum | FHA minimum (580+ score) |
|---|---|---|
| $850,000 | $25,500 (3 percent) | $29,750 (3.5 percent) |
| $870,000 | $37,250 (keeps the loan at $832,750) | $30,450 (3.5 percent) |
| $900,000 | $45,000 (5 percent) | $31,500 (3.5 percent) |
| $1,000,000 | $50,000 (5 percent) | $37,450 (keeps the loan at $962,550) |
What Happens Between $858,500 and $1,013,000?
Past about $858,500, 97 percent conventional falls away, but the next step isn’t automatically 5 percent. There’s a narrow band where the cheapest conventional move is putting down enough to keep the loan at $832,750.
At $870,000, that’s $37,250, because $870,000 minus $832,750 equals $37,250. It’s more than the $26,100 that 3 percent would be, and less than the $43,500 that 5 percent would be. Above about $876,600, 5 percent becomes the smaller number.
From there, 5 percent down keeps working until the loan hits the $962,550 county limit, which is around a $1,013,000 price. Above that you’re in jumbo territory, and each lender sets its own minimum down payment. Our page on jumbo loans in the Boston suburbs covers that side.
Where Does FHA’s 3.5 Percent Stop in Worcester County?
FHA’s 3.5 percent stops at about $564,900 there. Worcester County’s FHA limit for a one-family home is $545,100, and $545,100 divided by 0.965 is about $564,900. Above that price the FHA loan can’t grow, so every extra dollar of price is down payment.
On a $600,000 house there, FHA needs about $54,900 down, roughly 9 percent. Three percent conventional still works at that price, because Worcester County has no high-balance band, and comes to $18,000. Our page on FHA loan limits in Worcester County has the rest of that county’s numbers.
Are These Official Numbers?
The loan limits are published. The price points are our own rounded math from them. Real files can land a little differently because of lender overlays and, on FHA, an upfront premium financed into the loan. If the gap is the problem, our page on down payment assistance in Massachusetts covers the help that’s out there.
The useful move is to run your actual target price, credit and income through a pre-qualification conversation before you make an offer. GoldCoast is a broker, so we see which lender rules apply at your loan size. Wondering what you qualify for? Two minutes, no pressure. Set up a quick chat