What is an FHA loan?
An FHA loan is a mortgage made by an approved private lender and insured by the Federal Housing Administration, part of HUD. Because of that insurance, FHA guidelines are more flexible on credit and down payment than many conventional loans. They're popular with first-time buyers, but you don't have to be one, and the home must be your primary residence.
What are the 2026 FHA loan limits in southern NH?
| County | Towns include | One-unit limit |
|---|---|---|
| Hillsborough | Nashua, Manchester, Bedford, Merrimack, Hudson, Litchfield, Milford, Amherst, Hollis, Pelham, Goffstown, Weare | $589,950 |
| Rockingham | Salem, Windham, Londonderry, Derry, Exeter, Plaistow, Hampstead | $962,550 |
| Strafford | Dover, Rochester, Durham | $962,550 |
| Merrimack | Concord, Hooksett | $541,287 |
The town of Merrimack is in Hillsborough County; Merrimack County is the county around Concord. Rockingham and Strafford counties are part of the Boston metro area, which is why their limits are higher. Limits for 2 to 4 unit homes are higher, and you can look up any county on HUD's FHA mortgage limits page.
Do FHA loans have mortgage insurance?
FHA loans carry an upfront mortgage insurance premium, which can be added to the loan, and an annual premium paid monthly. How long the monthly premium lasts depends on your down payment and loan term. Your Loan Estimate A standard three-page form you receive within three business days of applying that shows your estimated rate, payment and costs. See the full glossary shows both.
What does an FHA appraisal check?
An FHA appraisal checks the home's value and also that it's safe, sound and secure under HUD's minimum property standards. Issues like peeling paint on an older home, a failing roof or missing stair rails may need to be fixed before closing. For a home that needs more work, an FHA 203(k) renovation loan can include the cost of repairs.
Buying a condo with FHA? The complex itself must be approved; see FHA-approved condos in southern NH, by town.
Can I use an FHA loan for a 2 to 4 unit home?
You can use an FHA loan to buy a 2 to 4 unit home if you live in one of the units. Lenders may count part of the expected rent from the other units toward qualifying, which can help with the older multi-family homes found in Manchester and Nashua. See investor and 2 to 4 unit strategies.
Can FHA buyers use gift funds?
FHA allows gift funds from relatives and certain other sources, with a Gift letter A signed letter from the person giving you money toward your purchase, stating it's a gift that doesn't have to be repaid. See the full glossary and a record of the transfer. Sellers may contribute toward closing costs within FHA's limits, and FHA loans can pair with NH Housing assistance for eligible buyers.
Is FHA or conventional better for me?
For some buyers FHA costs less overall. For others, especially with stronger credit, conventional comes out ahead, partly because its Mortgage insurance (PMI or MIP) Insurance that protects the lender on many loans with a smaller down payment. It's added to your payment and can often be removed later. See the full glossary can often be removed later (see how to remove PMI). Tom prices both from several lenders so you can compare the payment and the total cost side by side. More on conventional loans in NH.
Already have an FHA loan?
An FHA streamline refinance may lower your rate or payment with less paperwork and often without a new appraisal, as long as the new loan offers a clear benefit. See the refinance comparison.
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Sources
Checked October 2026. Limits and program rules change, so confirm current figures 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.