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New Hampshire First-Time Home Buyer Programs of 2019

July 5, 2019
Finding the Right Mortgage, Mortgages
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You don’t have to go it alone when buying a home for the first time. The New Hampshire Housing Finance Authority, or New Hampshire Housing, offers special programs to help make buying a home more affordable in the Granite State.

If one of those isn’t a fit, a nationally available mortgage program might get you in the door. A variety of national options feature low down payment or low credit score requirements, making them good choices for many first-time home buyers.

Check out these national and state mortgage programs as you begin your homebuying journey.

National first-time home buyer programs

These nationally available mortgage programs offer low-down-payment or low-credit-score options.

Conventional mortgage

National program

Best for

Low down payments

Limited mortgage insurance premiums

What you need to know

A conventional mortgage is a home loan that isn’t guaranteed or insured by the federal government. Conventional mortgages that conform to the requirements set forth by Fannie Mae and Freddie Mac allow down payments as low as 3% for first-time buyers or lower-income home buyers. Unlike FHA loans,

 

FHA loans

National program

Best for

Low credit score

Low down payment

What you need to know

This is the go-to program for many first-time home buyers with lower credit scores. The Federal Housing Administration allows down payments as low as 3.5% for those with credit scores of 580 or higher. The FHA will insure loans for borrowers with scores as low as 500 but requires a 10% down payment

 

VA loans

National program

Best for

Military

Low down payment

What you need to know

The U.S. Department of Veterans Affairs helps service members, veterans and surviving spouses buy homes. VA loans are especially generous, providing competitive interest rates, often requiring no down payment or mortgage insurance. Although there is no official minimum credit score, most

 

USDA loans

National program

Best for

Low down payment

Rural

What you need to know

A USDA home loan is a zero-down-payment mortgage for eligible rural and suburban home buyers. USDA loans are issued by the U.S. Department of Agriculture through the USDA Rural Development Guaranteed Housing Loan Program. There are income limitations, which vary by region. Applicants with credit

New Hampshire Housing highlights and eligibility requirements

The New Hampshire Housing Finance Authority offers a variety of programs to repeat and first-time home buyers to help them become successful homeowners. Explore these New Hampshire Housing programs to see if one of them might meet your needs.

» MORE: Tips for first-time home buyers

Highlights

  • Down payment and closing cost assistance available.
  • Condominiums and up to four-unit homes are allowed.

Eligibility

  • Income must be at or below $128,900.
  • Must be creditworthy.
  • Must complete a home buyer education class for some programs.
  • Must complete online purchase rehab training program for Purchase Rehab loan.

New Hampshire first-time home buyer programs

Home Flex Plus

State program

Learn more

at New Hampshire Housing

Best for

Low down payment

Closing cost assistance

What you need to know

The program provides down payment and closing cost assistance for up to 3% of the loan amount for an FHA, USDA or VA mortgage. The help comes in the form of a second mortgage, which is forgiven after four years if the borrower doesn’t refinance, file for bankruptcy or sell the home.

 

Home Preferred Plus

State program

Learn more

at New Hampshire Housing

Best for

Low down payment

Closing cost assistance

What you need to know

This conventional mortgage requires a down payment as low as 3% with discounted mortgage insurance. The program also provides down payment and closing cost assistance for up to 3% of the loan amount. The cash is provided through a loan that’s forgiven after four years as long as the borrower doesn’t

 

Home Preferred No MI

State program

Learn more

at New Hampshire Housing

Best for

Low down payment

No mortgage insurance

What you need to know

This conventional mortgage requires a down payment of 3% and does not require mortgage insurance.

 

Purchase Rehab

State program

Learn more

at New Hampshire Housing

Best for

Home improvements

What you need to know

Designed for fixer-uppers, this government-insured loan lets you add $35,000 to the purchase mortgage to help with repairs and upgrades. The mortgage can be combined with down payment and closing cost assistance from New Hampshire Housing.

 

Home Start Homebuyer Tax Credit

State program

Learn more

at New Hampshire Housing

Best for

Tax credit

What you need to know

The program provides an annual tax credit for a portion of the mortgage interest up to $2,000. You must apply for the tax credit during the loan process; if you qualify, it decreases the federal income taxes you would owe while in your home, effectively increasing your take-home pay on your mortgage

 

Home Preferred Manufactured ROCs

State program

Learn more

at New Hampshire Housing

Best for

Low down payment

Low mortgage insurance

Low mortgage rates

What you need to know

Created for buyers and current homeowners in qualified New Hampshire Resident-Owned Communities, or ROCs, this program provides conventional mortgages with low fixed rates, low down payment requirements and low-priced mortgage insurance options.

Summary: 2019 New Hampshire first-time home buyer programs

  • Home Flex Plus mortgage with down payment and closing cost assistance.
  • Home Preferred Plus mortgage with down payment and closing cost assistance as well as discounted mortgage insurance.
  • Home Preferred No MI with low down payment and no mortgage insurance requirement.
  • Purchase Rehab mortgage with low down payment and closing cost assistance.
  • Home Start Homebuyer Tax Credit for an annual portion of mortgage interest.
  • Home Preferred Manufactured Resident-Owned Communities mortgage with low down payment requirements and low-priced mortgage insurance.

You can learn more about the mortgage process by meeting with a homebuying counselor and attending a seminar or taking an online course. Details are available on the New Hampshire Housing website.

Once you’re familiar with the mortgage programs available — and before you start shopping for homes — contact one of the agency’s participating lenders to get prequalified for a mortgage.

» MORE: See the best mortgage lenders for first-time home buyers

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