Short answer
Sometimes. On a conventional loan, the lender may let you waive escrow and pay taxes and insurance yourself, under its own written policy, which has to consider whether you can handle the lump-sum bills. FHA loans require escrow for taxes and insurance, and many higher-priced loans must keep escrow for at least five years. Waiving escrow can come with a cost, so compare both ways before you choose.
What does escrow do?
With escrow, part of each monthly payment goes into an account your servicer uses to pay your property taxes and homeowners insurance when they're due. Once a year the servicer reviews the account and adjusts your payment if the bills changed. See NH tax bills and escrow.
When can a conventional loan skip escrow?
Fannie Mae lets lenders waive escrow under a written policy, and the decision can't be based only on how much equity you have: it also has to weigh whether you can pay the bills in lump sums. Escrow can't be waived for borrower-paid mortgage insurance or for some refinances that roll taxes into the loan. Lenders often price a waiver differently, so ask what it changes on your Loan Estimate.
Can FHA, VA or USDA loans skip escrow?
FHA rules require your monthly payment to include taxes and insurance held in escrow. VA and USDA loans generally use escrow too. Federal rules also require escrow on most higher-priced first mortgages, and it can't be canceled for at least five years.
What does paying taxes yourself mean in New Hampshire?
Property taxes are a large bill here, and many towns split the year into two bills. Without escrow, you need the money set aside when each bill arrives, plus the insurance premium once a year. If a tax rate rises, nobody adjusts your savings for you. Some owners like that control; others prefer the steady monthly payment. Look up your town's rate with the NH property tax calculator.
Can I drop escrow later?
Some servicers let you ask to remove escrow after a period of on-time payments and enough equity, under their own rules and the loan's terms. Ask your servicer directly. Tom can show you both options when you compare loans.
Sources
- Fannie Mae Selling Guide B2-1.5-04, Escrow Accounts
- 24 CFR 203.23, FHA payments to include taxes and insurance (eCFR)
- CFPB, Regulation Z 12 CFR 1026.35, Higher-priced mortgage loans (escrow)
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.