What Is a Financing Contingency in New Hampshire Real Estate?

🏡 What Is a Financing Contingency in New Hampshire Real Estate?

When buying a home in Plymouth, Campton, Rumney, Thornton, Ashland, or anywhere throughout Central NH, the financing contingency is one of the most important protections available to buyers.

This contingency ensures that if your mortgage falls through for a valid reason, you can withdraw from the purchase without losing your earnest money.

Here’s how it works and why it matters.

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What Is a Financing Contingency?

A financing contingency gives buyers time to:

Secure final mortgage approval

Submit required documents

Complete underwriting

Lock in an interest rate

If the lender denies the loan within the agreed timeline — despite the buyer cooperating — the buyer can cancel the contract and receive their earnest money deposit back.

This protects buyers from being forced to close without a loan.

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How Long Do Buyers Get for Financing in NH?

In most New Hampshire purchase contracts, buyers receive:

✔ 20–30 days for financing approval

✔ Additional time may be negotiated in competitive markets

✔ Extensions are sometimes granted if underwriting needs more documentation

In the Plymouth and Central NH region, 24–28 days is a common financing window.

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When Can Financing Be Denied?

Even with pre-approval, financing can fall through if:

The buyer’s employment changes

Debt or credit score shifts

The appraisal comes in low

Underwriting uncovers inconsistencies

Documents aren’t submitted on time

The loan program requirements change

This is exactly why the financing contingency is so important.

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Can You Waive the Financing Contingency?

You can, but it comes with risk.

Waiving might be used when:

Competing with cash buyers

Making a highly aggressive offer

Buyers have extremely strong financials

However, waiving means that if financing fails, the buyer may lose their earnest money — so most NH buyers prefer to keep it in place.

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Q&A

Q: Does a pre-approval guarantee financing?

A: No — pre-approval is strong but not final. Only underwriting approval guarantees the loan.

Q: Can the financing contingency be extended?

A: Yes — but only if the seller agrees in writing.

Keywords

nh financing contingency, new hampshire mortgage rules, plymouth nh home buying, campton nh real estate, rumney nh buyer protection, thornton nh underwriting process, central nh real estate contingencies

Jim Johnson — Real Estate Agent

58 NH Route 25A

Wentworth, NH 03282

P: (857) 249-7392

W: www.JimJohnsonRealEstateAgent.com

Licensed New Hampshire REALTOR® with Three Hills Real Estate Services

Broker Email: info@ThreeHillsRES.com

Broker Website: www.ThreeHillsRES.com