FHA Loan Requirements, Limits and Approval Tips
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2022 FHA Loan Limits in New Hampshire

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Recent FHA loan limit changes will allow New Hampshire homebuyers in most counties to borrow up to $420,680 in 2022, to finance a single-family home with a loan backed by the Federal Housing Administration (FHA).

The limit bumps up to $770,500 for pricier New Hampshire counties like Rockingham and Strafford.

New Hampshire FHA loan limits by county

County nameOne unitTwo unitsThree unitsFour unitsMedian sales price
BELKNAP$420,680$538,650$651,050$809,150$240,000
CARROLL$420,680$538,650$651,050$809,150$320,000
CHESHIRE$420,680$538,650$651,050$809,150$229,000
COOS$420,680$538,650$651,050$809,150$125,000
GRAFTON$420,680$538,650$651,050$809,150$275,000
HILLSBOROUGH$430,100$550,600$665,550$827,100$374,000
MERRIMACK$420,680$538,650$651,050$809,150$306,000
ROCKINGHAM$770,500$986,400$1,192,300$1,481,750$670,000
STRAFFORD$770,500$986,400$1,192,300$1,481,750$670,000
SULLIVAN$420,680$538,650$651,050$809,150$275,000

How are FHA loan limits determined?

Every year FHA loan limits change based on a percentage of the conforming loan limits for conventional loans published by the Federal Housing Finance Agency (FHFA). Different limits are set for low-cost and high-cost areas of any given state.

Here’s how the FHA loan limits are calculated:

The low-cost limit or “floor” is $420,680 in 2022 for a single-family home. This limit is set at 65% of the 2022 national conforming loan limit of $647,200. If you’re buying a multifamily home in New Hampshire, the low-cost limits increase with each unit:

  • $538,650 for a two-unit home
  • $651,050 for a three-unit home
  • $809,150 for a four-unit home

The high-cost limit is set at 150% of the conforming loan limit, which means you could borrow up to $970,800 for a single-family home if you live in one of the priciest U.S. counties. However, the most expensive New Hampshire counties don’t quite hit the maximum limits:

  • $770,500 Rockingham
  • $770,500 Strafford
  • $430,100 Hillsborough

How to qualify for an FHA loan in New Hampshire

FHA loans make sense if your credit scores aren’t strong and you have limited down payment funds. Homebuyers often choose them if they can’t qualify for a conventional loan.
Here’s a breakdown of the minimum qualifying requirements for an FHA loan in New Hampshire:

  • Down payment and credit score. A 580 credit score is required if you plan to make the minimum 3.5% down payment. Scores as low as 500 are allowed if you can make a 10% down payment or more.
  • Debt-to-income ratio. Your debt-to-income (DTI) ratio is a measure of how much total monthly debt you have compared to your before-tax income. The preferred DTI ratio guideline is 43%, but exceptions are possible for borrowers with high credit scores or extra savings.
  • Mortgage insurance. You’ll pay two types of FHA mortgage insurance to protect lenders if you default and they have to foreclose. The first is an upfront mortgage insurance premium (UFMIP) worth 1.75% of your loan amount, which is usually added to your mortgage. The second is an annual mortgage insurance premium (MIP), which costs 0.45% to 1.05% of the loan amount and is divided by 12 and added to your monthly payment. You’re charged both premiums regardless of your down payment amount.
  • Occupancy. You must live in the home you buy with an FHA loan as your primary residence for at least a year.
  • FHA home appraisals. An FHA appraisal is required if you’re buying a home with an FHA loan. The home is subject to stricter safety and habitability requirements under FHA appraisal guidelines than for conventional loan guidelines.

Buying a multifamily home with an FHA loan

You may be able to buy a multifamily home with a 3.5% down payment and add the rental income to your qualifying income. However, you’ll have to live in one of the units as your primary residence for at least a year. Conventional guidelines typically require a 15% down payment or higher.

FHA lenders in New Hampshire

Lender nameLT ratingMinimum FHA credit score
BMO Harris Bank 8.5/10580
Fairway Independent Mortgage8/10600
Zillow Home Loans7.5/10580
Rocket Mortgage9.5/10580
AmeriSave Mortgage8/10600

 

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