Shingled houses and a lighthouse on the Cape Cod shoreline

Buying a home in
Cape Cod

Q: Can I get a US mortgage for a holiday home if I live in Europe?

Yes, but not a standard one. Mainstream loans are for people lawfully resident in the United States. Buyers who live abroad use foreign national loans, which generally require a larger down payment and carry a higher rate, and the lender will look closely at your income and assets at home. With about 40% of Cape sales involving cash, you will also be competing with buyers who need no loan at all.

Q: What is the land bank fee?

Nantucket and Martha's Vineyard each have a land bank that buys land for conservation, funded by a 2% fee on most real estate transfers. On Nantucket the law makes it the purchaser's liability whatever the contract says. On a $2 million purchase that is $40,000 on top of your other closing costs. There is a partial exemption for first-time buyers who make the property their home, which will not apply to a holiday home.

Q: Why is the property tax rate so low?

Because values are high. Each town raises the money it needs across its total assessed value, so a town full of expensive homes can set a low rate. Edgartown's rate of $2.48 per $1,000 still produces a bill of $4,960 on a home assessed at $2 million. Compare bills in dollars, not rates.

Q: Can I let the house when I am not there?

Usually, but check the town. Short stays of 31 days or less carry the 5.7% state excise, a local option of up to 6% and, in every Cape Cod town, a 2.75% surcharge for the Cape Cod and Islands Water Protection Fund. You must register with the state as an operator even if you live abroad. On Nantucket, voters approved a bylaw in November 2025 allowing short-term rentals in almost all zoning districts, after years of court cases. Rules elsewhere vary by town.

Q: What should worry me about a house by the sea?

Water and wind. Standard home insurance does not cover flood damage, and a federally backed lender will require flood insurance in a high-risk flood area. Policies near the coast often have a named-storm deductible of 1% to 5% of the insured value. Get quotes before you sign: on the Cape and Islands a large share of owners end up with the state FAIR Plan because private insurers decline.

Shingled houses, dunes and ferries: the Cape and the Islands are New England's summer address. For a European buyer they are also a lesson in the costs that do not appear in the asking price, from a 2% land bank fee to insurance that many owners can only get from the state's insurer of last resort.

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Everything about buying in Cape Cod and the Islands

Short answers on this page. The full guide has the detail, the figures and the sources.

The purchase and the loan

How a purchase runs here and which loans fit.

Financing a second home from Europe

Prices, taxes and insurance

What homes cost and what you pay on top.

The costs that are not in the price
Insurance decides whether the numbers work
Estate tax for a holiday-home owner

Letting and living

Rental rules, local life and how to get there.

Renting it out, and tax on the rent

Read the full guide

Three markets, not one

Cape Cod is a peninsula of fifteen towns that you can drive to from Boston. In August 2026 the median single-family home in Barnstable County sold for $816,900 and the median condominium for $485,000. Martha's Vineyard and Nantucket are islands reached by ferry or small plane, and they are priced accordingly: the Vineyard's median was $1.7 million in the first half of 2026, with almost a quarter of sales above $3 million. Nantucket is more expensive again, with so few sales that a monthly median means little.

What they share is that most buyers are not relying on a local salary. About 40% of Cape Cod transactions in August 2026 involved a cash buyer. A European buyer who needs financing should have it arranged before making an offer, because the seller will often have an alternative who does not.

Historic pink colonial house with a slate roof and brick chimney in Sandwich, Cape Cod

The Cape and Islands at a glance

Figures last checked: 3 October 2026

This is not a lending decision: a US specialist confirms what applies to your own situation.

Cape Cod prices	Median $816,900 for a single-family home and $485,000 for a condo in Barnstable County, August 2026 (Cape Cod and Islands Association of Realtors).
Martha's Vineyard	Median sale price $1.7 million in the first half of 2026, as reported by the Vineyard Gazette.
Cash buyers	About 40% of Cape Cod sales in August 2026 involved a cash buyer.
Property tax	Fiscal year 2026 residential rates per $1,000: Barnstable $6.80, Provincetown $6.13, Falmouth $5.73, Chatham $3.67, Nantucket $3.12, Edgartown $2.48.
Extra cost at purchase	On Nantucket and Martha's Vineyard, a 2% land bank fee on most purchases.
Loan limits 2026	$832,750 on Cape Cod, $1,249,125 on Martha's Vineyard and Nantucket.
Insurance	About 40% of Cape and Islands homes are insured through the state FAIR Plan, the insurer of last resort.

Sand dunes with beach grass and blue ocean at Cape Cod National Seashore near Provincetown

White Edgartown Lighthouse beside marsh grass and calm water on Martha's Vineyard

Flower gardens and a street leading to boats on the water in Chatham, Cape Cod

Grey-shingled waterfront houses on stilts reflected in calm harbour water at sunrise in Nantucket

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Before you make an offer on the Cape or Islands

Arrange financing first: many competing buyers pay cash.
Add the 2% land bank fee to your budget on either island.
Ask for the Title 5 septic report and read it.
Get the flood zone and insurance quotes during the inspection period.
Check the town's short-term rental rules and register with the state if you will let.
Ask a tax adviser about the net-income election for rental income.
Take advice on federal and Massachusetts estate tax before choosing how to hold the property.
Plan the euro to dollar conversion well ahead of closing.

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Questions people moving from Europe ask

Can I get a US mortgage for a holiday home if I live in Europe?

What is the land bank fee?

Why is the property tax rate so low?

Can I let the house when I am not there?

What should worry me about a house by the sea?

Continue your research

Sources (16)

Figures and rules on this page were checked against these sources on 3 October 2026. Rates, prices and local rules change, so confirm anything you rely on before you commit.

Buying a home inCape Cod