New Hampshire is a wonderful place to live and work. There are lively communities in Manchester and Nashua, as well as beautiful rural areas such as the White Mountains and the coastal region of Portsmouth. The Granite State combines spectacular natural beauty, strong economic opportunities, no sales tax, and close-knit communities that make living there particularly appealing.
However, many people in New Hampshire are struggling to afford monthly mortgage payments. House prices have gone up while wages haven’t increased accordingly. Many people can’t save enough for a down payment, especially first-time homebuyers who don’t have built-in equity. Some people have had financial difficulties in the past and are just recovering. Conventional loans feel out of reach, yet they want to buy a new home.
For all of you in this position, there is the FHA loan program, which makes homeownership more accessible and on more favorable terms compared to conventional loans. The Federal Housing Department backs these first-time homebuyer programs, which have helped people throughout New Hampshire, from the southern tier near the Massachusetts border to the mill towns along the Merrimack River, buy their homes.
FHA home loans have low down payments, competitive interest rates, and lenient credit score requirements, making it easier for the average American to buy their home even if their financial profile is not ideal.
Society Mortgage is a reliable and professional FHA loan lender. Our Loan Officers are here to answer your questions and help you with the application. As we have helped hundreds of people in New Hampshire get a mortgage with this loan program, we have the know-how and expertise to guide you throughout the application process.
What Are FHA Loans?
FHA loans are residential mortgages backed by the Federal Housing Administration, a Department of Housing and Urban Development (HUD). They aim to help people who might not qualify for a conventional loan. FHA loans require a low down payment, as low as 3.5%, and are lenient with minimum credit scores. These payment assistance programs include competitive mortgage rates and terms that make it easier for people to buy a home with their current financial profile.
New Hampshire FHA Loan Eligibility Requirements
Our Society Mortgage specialists work closely with trustworthy real estate agents and will tell you all the FHA loan requirements to qualify for these mortgages. Here is a detailed outline.
Credit Score
New Hampshire FHA first-time homebuyer applicants may qualify with credit scores as low as 580 to access the minimum 3.5% down payment opportunity.
The FHA loan program is accessible to homebuyers with scores between 500 and 579 as long as they can provide a 10% down payment.
FHA lenders will review your financial profile to assess your strengths and weaknesses beyond the numbers.
Down Payment
FHA loan programs are designed for people who can’t save enough for a sizeable down payment. The minimum down payment is 3.5%, which makes homeownership more accessible. Considering that conventional loans have down payments of 10 or 20%, the difference means thousands of dollars less in required savings.
Income and Employment
To apply for an FHA mortgage in New Hampshire, you must show proof of steady employment and at least two years of consistent work history. You must also submit verifiable income records showing you earn enough to manage monthly housing payments comfortably.
DTI
Your overall debt-to-income ratio should be below 43%. Still, FHA guidelines can be lenient if you have compensating factors to be considered during your application.
Property Standards
Any property bought with the FHA loan type must be a primary residence. Investment properties and vacation homes are excluded.
The home must meet FHA standards, which means it must be safe, sound, and in good shape to be occupied within 60 days of closing.
An FHA-authorized appraiser will evaluate the property to confirm it meets all requirements set by the FHA.
Mortgage Insurance
All New Hampshire FHA loans include monthly mortgage insurance to protect lenders against borrower default.
This coverage includes an Upfront Mortgage Insurance Premium (UFMIP) of 1.75% of your maximum loan amount, which can be incorporated into your loan in some circumstances.
Additionally, you will make Annual Mortgage Insurance Premium (MIP) payments, which range from 0.15% to 0.75% of your outstanding balance, depending on the loan duration, amount borrowed, and down payment percentage.
Applying for an FHA Home Loan in New Hampshire
Society Mortgage is an experienced FHA housing finance agency. We have set up a streamlined application process for all New Hampshire residents.
Initial Consultation
Connect with our New Hampshire mortgage specialists who will review your financial profile and assess how an FHA loan can fit with your homeownership goals in New Hampshire.
Documentation
Compile all necessary documents, including government identification, recent employment earnings statements, previous two years’ tax filings and W-2 forms, banking records, and verification of supplemental income sources.
Application
Work with one of our New Hampshire Loan Officers to complete your FHA mortgage application.
Property
Find a home in New Hampshire that fits your needs. An FHA-certified appraiser will thoroughly evaluate to verify that it meets FHA standards.
Underwriting
Our team will review your application and all documents to verify that all requirements are met.
Closing
Upon approval, you can sign the papers for your new New Hampshire home and move in.
FHA Loan Limits in New Hampshire
FHA mortgage limits depend on the county you are interested in. For 2025, these maximum loan amounts start at $524,225 for single-family residences in standard-cost regions like Coos County.
Our team knows how loan limits vary across counties and will help you find the limits for your target New Hampshire area.
FHA Loans in Key New Hampshire Regions
The Manchester-Nashua area is popular for FHA borrowers, mainly because it combines the technology, healthcare, and manufacturing sectors, which creates a stable employment foundation.
The Portsmouth area and surrounding coastal communities are equally popular with FHA borrowers, though a higher house purchase price can be an issue.
The Lakes Region and White Mountains are great opportunities for FHA mortgage applicants, as tourism, recreation, and service industries are boosting the area.
Ideal Candidates for New Hampshire FHA Loans
People with low savings
FHA loans are ideal for people with limited savings but still want to pay for a home in New Hampshire.
People with past financial difficulties
You can apply for an FHA loan if your financial profile shows past financial difficulties. These programs are more forgiving than conventional loans.
First-time buyers
First-time buyers have no built-in equity, minimal credit history, and might carry debt, especially if they are young professionals. For these people, FHA loans are ideal.
People rebuilding their finances
People with past financial difficulties can recover and rebuild their profiles with an FHA loan, which is more lenient regarding credit history and credit score.
Advantages of New Hampshire FHA Loans
Low down payments
FHA loans require low down payments, making accessing the property market easier, even with low savings.
Friendly credit score requirements
Credit score requirements are more forgiving with FHA loans.
Competitive interest rates
FHA loan interest rates are competitive and comparable to conventional loans.
Closing costs
Under certain circumstances, closing costs can be rolled into the loan to minimize out-of-pocket expenses.
DTI
FHA loans will consider a higher DTI if there are compensating factors.
Limitations of New Hampshire FHA Loans
Mandatory insurance
Mortgage insurance must be paid for most of the mortgage’s lifespan, adding to monthly payments.
Property requirements
Property requirements mean that homes must be safe and sound, and should be occupied within 60 days of closing. Fixer-uppers and homes requiring significant repairs are excluded.
Borrowing maximums
Borrowing maximums might be too low for popular New Hampshire areas, particularly in the Seacoast region or trendy lake and mountain communities.
Primary residence
FHA financing requires homes to be primary residences, which means FHA loans can’t be used for investment property or vacation homes.
Pros and Cons of FHA Loans in New Hampshire
Pros
- Homeownership is accessible with low savings and low down payments.
- Credit score requirements are more lenient compared to conventional loans.
- Loan terms are transferable, which means future buyers could benefit from a favorable interest rate.
Cons
- Insurance throughout the mortgage lifespan adds to monthly payment obligations and increases long-term ownership costs.
- Property requirements may limit housing loan options.
- Set borrowing thresholds may prove too low for premium properties in popular New Hampshire locations, particularly in Portsmouth, lakefront communities, or ski areas.
Society Mortgage for Your FHA Loan in New Hampshire
Society Mortgage is your leading FHA lender in New Hampshire. We have expertise and experience in the FHA loan program, and our Loan Officers are reliable, trusted, and friendly. We will happily answer all your questions and provide information on the FHA loan program. We will be with you throughout the application process and streamline it so you can buy your New Hampshire home on favorable terms and within your budget.
Contact our team in New Hampshire today! Our mortgage specialists will explain how the FHA loan program works and how you can apply today to buy your home in the Granite State tomorrow!
