FHA Loan Limits in New Hampshire
Mortgages backed by the Federal Housing Administration (FHA) help make home buying possible with less strict requirements, but they come with limits on how much you can borrow. In most of the Granite State, you can borrow up to $472,030, but in Rockingham and Strafford counties, the limit increases to $828,000.
New Hampshire FHA loan limits by county
| County name | One unit | Two units | Three units | Four units | Median sales price |
|---|---|---|---|---|---|
| BELKNAP | $472,030 | $604,400 | $730,525 | $907,900 | $325,000 |
| CARROLL | $472,030 | $604,400 | $730,525 | $907,900 | $357,000 |
| CHESHIRE | $472,030 | $604,400 | $730,525 | $907,900 | $260,000 |
| COOS | $472,030 | $604,400 | $730,525 | $907,900 | $140,000 |
| GRAFTON | $472,030 | $604,400 | $730,525 | $907,900 | $275,000 |
| HILLSBOROUGH | $477,250 | $610,950 | $738,500 | $917,800 | $415,000 |
| MERRIMACK | $472,030 | $604,400 | $730,525 | $907,900 | $350,000 |
| ROCKINGHAM | $828,000 | $1,060,000 | $1,281,300 | $1,592,350 | $720,000 |
| STRAFFORD | $828,000 | $1,060,000 | $1,281,300 | $1,592,350 | $720,000 |
| SULLIVAN | $472,030 | $604,400 | $730,525 | $907,900 | $275,000 |
How are FHA loan limits determined?
As housing prices can vary greatly by location, the Department of Housing and Urban Development (HUD) creates a range based on the conforming loan limit, which is the limit for conventional loans as determined by the Federal Housing Finance Agency each year.
The FHA will finance 65% to 150% of the conforming loan limit. This works out to be $472,030 to $1,089,300. This top limit only applies to the most expensive areas, while the lowest limit applies to most of the country.
How to qualify for an FHA loan in New Hampshire
While FHA loans have less strict qualifications, you should meet these minimum requirements to before you apply:
- Have a minimum 500 credit score. The lowest credit score you can have and still qualify for an FHA loan is 500. If you’re not there yet, here’s how to improve your credit score. Individual lenders often look for higher scores and, if your score is 580+, you can make a smaller down payment.
- Save a 3.5% down payment. A credit score of 580 or higher means that you need to make only a 3.5% down payment. A score of 500 to 579 means you’ll need to pay at least 10% down.
- Have a 43% debt-to-income (DTI) ratio. Your DTI is how much of your monthly income you pay towards debt. You generally need a DTI below 43% to qualify for an FHA loan, although some lenders may be willing to make exceptions up to 50%.
Before you sign on the dotted line for a New Hampshire FHA loan, you’ll need to:
- Have an FHA home appraisal. Unlike in conventional loans, you can’t waive an FHA home appraisal.
- Agree to FHA mortgage insurance. FHA loans require two types of mortgage insurance. The annual mortgage insurance premium (MIP) is 0.15% to 0.75% of your loan amount and is added to your monthly payment. The upfront mortgage insurance premium (UFMIP) is 1.75% of your loan amount, which is usually rolled into the mortgage.
- Agree to occupancy. As an FHA borrower, you must use your home as a primary residence for at least a year.
Buying a multifamily property with an FHA loan
You can use an FHA loan to purchase a multifamily home that has up to four units, as long as you live in one of the units for at least a year after you buy it. All of the same qualification requirements apply — you could pay 3.5% to 10% down and have a minimum credit score of 500 to 580.
Two advantages of an FHA multifamily loan are that you may be able to use the expected rental income to help you qualify and the FHA loan limits are higher with each additional unit.
FHA lenders in New Hampshire
| Lender name | LT rating | Minimum FHA credit score |
|---|---|---|
| PennyMac Mortgage | 5 stars | 580 |
| Rocket Mortgage | 5 stars | 580 |
| Fairway Independent Mortgage | 3 stars | 580 |
| Caliber Home Loans | 3 stars | 620 |