First-Time Homebuyer Programs in New Hampshire

The down payment on a new home is often the biggest hurdle for first-time homebuyers. In New Hampshire, where the average home value is $479,752, a down payment of $95,950 is needed to avoid buying private mortgage insurance.

First-time homebuyer programs in New Hampshire help make homeownership more accessible. Some mortgages let you make a smaller down payment, but they often have income limits and require mortgage insurance. MoneyGeek explores several state-specific and government-backed first-time homebuyer programs for people from different financial backgrounds.

New Hampshire provides grants and loans to assist first-time homebuyers with down payment and closing costs. We compiled the first-time homebuyer programs offered by New Hampshire Housing to help you find the best option for your needs and situation.

The Home First Program provides up to $15,000 in down payment and closing cost assistance as a second mortgage with 0% interest, no monthly payments and a 30-year term. You must repay the loan if you sell, refinance, file for bankruptcy or stop using the home as your primary residence within 30 years. Eligible borrowers also receive a below-market interest rate.

The Home Flex Plus Program provides up to $15,000 in down payment and closing cost assistance to first-time and repeat homebuyers. The aid comes as a 0% interest second mortgage with no monthly payments, repayable when the property is sold, refinanced or no longer used as a primary residence. The program offers various mortgage types, including FHA, VA and USDA loans. Unlike the Home First Program, the Home Flex Plus Program has higher income limits, up to $167,800, making it accessible to more homebuyers.

The Home Preferred Program is a conventional mortgage option with low down payment options. It requires as little as 3% down and offers reduced private mortgage insurance (PMI) for borrowers with incomes below 80% of the area median income (AMI). The program can be used to finance manufactured homes, including those in resident-owned communities.

The Homebuyer Tax Credit program offers a federal mortgage credit certificate (MCC), allowing first-time homebuyers to claim up to $2,000 annually as a tax credit. This credit, available for the life of the loan, reduces federal taxes owed and makes homeownership more affordable. However, the credit is unavailable in all New Hampshire Housing mortgage programs, so borrowers should confirm eligibility based on the specific loan product.

In addition to New Hampshire's statewide first-time homebuyer programs, city-specific programs help residents achieve homeownership in their chosen cities. The table below highlights some of the cities in New Hampshire with a program for first-time homebuyers.

New Hampshire offers zero-down-payment loan programs that allow you to buy a home without putting money down. USDA and VA loans are government-backed options that provide this benefit.

USDA loans, offered through the U.S. Department of Agriculture's Rural Development Guaranteed Housing Loan program, help homebuyers in rural areas who may not qualify for traditional financing.

USDA loans offer several benefits, including no down payment requirements, lower interest rates than conventional loans and reduced mortgage insurance costs. These loans make homeownership more accessible to low-to-moderate-income households in eligible rural areas.

To qualify for a USDA loan, the property must be 2,000 square feet or below and located in a USDA-eligible rural area with a population of less than 35,000. Income limits vary by location. For instance, in Cheshire County, New Hampshire, the income limit for a four-person, low-income household is $83,600, while in Merrimack County, New Hampshire, it's $92,100.

VA loans from the U.S. Department of Veterans Affairs are for service members, veterans and their families seeking home financing options.

VA loans come with several advantages, including a no-down payment option. They don't require private mortgage insurance, reducing monthly payments. VA loans also typically offer lower interest rates than private loans. As of November 2024, the current APR for a 15-year fixed-rate VA loan in New Hampshire is 6.16%, while the APR for a 30-year fixed-rate VA loan is 6.25%.

To qualify for a VA loan, you must meet specific eligibility requirements, including service length or commitment, duty status and character of service. Income limits may apply based on where you live. A valid certificate of eligibility (COE) is also necessary.

First-time homebuyers in New Hampshire can access low-down-payment loan programs that allow them to finance their homes with a down payment of 3.5% or less. These programs include conventional, FHA and FHA 203(k) loans.

FHA and conventional loans are often compared, as they're the most common types of mortgages. FHA loans require at least a 3.5% down payment, while conventional loans can require as low as 3% for first-time homebuyers. Conventional loans typically have stricter credit score and debt-to-income ratio requirements than FHA loans.

As of November 2024, the APR for a 15-year fixed-rate conforming loan in New Hampshire is 6.03%, whereas the APR for a 15-year fixed-rate FHA loan is 8.11%. FHA loans can have higher APRs because they often include more fees and costs associated with government-backed loans.

Use our FHA vs. conventional loan calculator below to compare both mortgage programs and determine the best option.

We answered frequently asked questions about first-time homebuyer programs in New Hampshire to help you determine the best option and get closer to owning a home.

Explore additional MoneyGeek resources for first-time homebuyers in New Hampshire to help you with the homebuying process.