New Hampshire first-time home buyer programs and grants

It takes only one visit to New Hampshire to see why people want to move there. Known as one of the best places to experience winter, New Hampshire is also considered one of the best states to live in and one of the best states to retire in.

If you plan on buying a home in New Hampshire, you should know there are several first-time home buyer assistance programs and grants to help.

New Hampshire Home Buying Statistics

Buying a house in New Hampshire might seem overwhelming – especially if you’re a first-time home buyer. Here are a few important statistics on New Hampshire home buyers:

Who qualifies as a first-time home buyer in New Hampshire?

Each program in New Hampshire has its own requirements to determine who qualifies as a first-time home buyer. However, in general, the requirement is that an individual must not have owned a home in the previous 3 years to be considered a first-time home buyer.

In addition, there are varying requirements for each home buying assistance program. However, the typical New Hampshire first-time home buyer program requires home buyers to meet the following criteria:

• Must have a credit score of 620 or higher
• Income must generally be at or below $169,900
• Must complete a home buyer education course for some programs

New Hampshire first-time home buyer programs

Becoming a homeowner in New Hampshire is possible through many assistance programs, grants and other resources.

New Hampshire housing Home Flex Plus program

The Home Flex Plus program offers a mortgage program as well as down payment and closing cost assistance. This fund will provide a cash grant for up to 3% of the total loan amount for use toward your down payment and closing costs. This grant does not have to be repaid. The mortgage program offers flexible criteria to work with many buyers.

To qualify for this program, buyers must meet the following requirements:

• Complete a home buyer education course
• Have a minimum credit score of 620
• Have a household income under $169,900
• Keep the home as a primary residence

The home must be a 1- to 4-unit home, a condo approved by the FHA/Rural Development (RD) or the VA or a manufactured home on their own land.

New Hampshire Housing Home Preferred Plus program

The Home Preferred Plus program is in conjunction with Fannie Mae and offers a mortgage on up to 97% of the property value and cash assistance for the remaining 3%.

To qualify for this program, buyers must satisfy these requirements:

• Purchase a primary residence, must be owner occupied
• Meet the income limit of 80% or less of the area’s average median income
• Have a minimum credit score of 620
• Complete a home buyer education course
• Meet Fannie Mae eligibility on all condos
• Hold homeowners insurance with a maximum deductible of $1,000

New Hampshire Housing Purchase Rehab program

The New Hampshire Housing Purchase Rehab program allows buyers to roll up to $35,000 in repairs into the cost of buying their home.

To qualify for this program, buyers must meet these requirements:

• Qualify for an FHA or a USDA/RD loan
• Use the additional funds for renovations or cosmetic upgrades – not structural issues

Home Buyer Tax Credit

The Home Buyer Tax Credit program is a direct dollar-for-dollar reduction in federal taxes worth 10% – 50% of the interest paid on your mortgage annually, up to $2,000. Here are the calculations:

• Mortgage amount ✕ loan interest rate = Annual mortgage interest paid
• Annual mortgage interest paid ✕ Home Buyer Tax Credit rate = Annual tax credit

To qualify for this program, buyers must satisfy the following requirements:

• Reserve the credit through a New Hampshire Housing Participating Lender before purchasing the home
• Complete a home buyer education course
• Be a first-time home buyer
• Purchase a home in a targeted community
• Meet income and purchase price limits

Home Preferred Manufactured Housing ROCs

The Home Preferred Manufactured Housing program for Resident-Owned Communities (ROCs) is in conjunction with Fannie Mae and offers a mortgage on up to 95% of the property value and cash assistance for an additional 3% – 4% on the purchase of manufactured housing.

To qualify for this program, buyers must meet these requirements:

• Purchase manufactured housing
• Purchase a primary residence, must be owner occupied
• Meet the income limit of 80% or less of the area’s average median income
• Have a minimum credit score of 620
• Complete a home buyer education course
• Meet Fannie Mae eligibility on all condos
• Hold homeowners insurance with a maximum deductible of $1,000

New Hampshire Housing Home First program

The New Hampshire Home First program is a bond-financed initiative that offers a rate-advantaged mortgage alongside the option to receive $5,000 or $10,000 in cash for down payment assistance and closing costs.

To qualify, buyers must meet the following requirements:

• Use a mortgage insured by the FHA, VA, USDA RD or Fannie Mae
• Be a first-time buyer or a qualified veteran
• Meet income and purchase price limits specific to your town or city

With Home First, the $10,000 down payment assistance is provided as a second mortgage and is fully forgiven after 5 years.

New Hampshire First Generation Home Buyer

First Generation Home Buyer is a New Hampshire Housing pilot program that also offers $10,000 in down payment assistance. To be eligible for this program, buyers must satisfy these requirements:

• Be a first-generation home buyer
• Purchase a single-family primary residence
• Finance through an New Hampshire Housing-approved lender, using one of their first mortgage programs
• Complete face-to-face home buyer education courses

New Hampshire Housing considers you a first-generation home buyer if:

• You’ve never owned a home before
• Your co-borrower, spouse, parents or legal guardians have never owned a home before
• You’ve been in foster care or have legal refugee or asylum status in the United States

New Hampshire home buyer programs by city/town

New Hampshire also offers home buying help unique to different cities.

Nashua, N.H., first-time home buyer assistance program

The city of Nashua’s Home Buyer Assistance Program offers grants up to $10,000 for eligible low- to moderate-income first-time home buyers to use for the down payment, closing costs or even toward the home purchase price itself.

Here are the program’s eligibility requirements:

• Your household income must be below 80% of the Nashua area median income
• The home must be a single-family home, duplex, three-family home, condo or townhouse located in Nashua, vacant for at least 3 months and meet safety standards
• The home price cannot exceed 95% of Nashua’s median sales price
• You’ll need preapproval for a first mortgage that meets the program’s requirements
• You’ll need at least 1.5% of the purchase price for a down payment

Portsmouth, N.H., home buyer program

The Portsmouth HomeTown Program offers a low-interest mortgage program and closing cost assistance.

To qualify for this program, buyers must meet these requirements:

• Be a first-time home buyer
• Purchase a home in Portsmouth
• Have an eligible income
• Complete a home buyer education course

Buyers must also be a current resident of Portsmouth who’s lived there for at least 2 years or a former resident of Portsmouth for at least 10 years who’s currently living within 30 miles of Portsmouth or who’s a permanent, full-time city of Portsmouth employee.

Additional government-backed loans for N.H. first-time home buyers

Once you determine how much house you can afford, it’s time to find a mortgage. There are several nationwide first-time home buyer loans that would apply to home buyers in New Hampshire:

• FHA loans
• VA loans
• USDA loans

FHA Loans

FHA loans are a federal loan program that allows home buyers to secure a mortgage with a 3.5% down payment, assuming that the borrower has a credit score of 580 or higher. FHA loans can also be an option for people with slightly lower credit scores (as low as 500) with a 10% down payment. Overall, FHA loans are a great option for home buyers without a lot of savings for a down payment.

VA Loans

VA loans are available exclusively to qualified veterans, members of the military, and surviving spouses. VA loans are available for up to the full value of a home – no down payment is necessary. Even with no down payment requirement, there’s often a VA funding fee that’s between 1.25% – 3.3% of the loan value.

VA loans also have some of the lowest closing costs of any loan. This is a great option for members of the military without a lot of savings for a down payment who may be moving around or just starting out in a permanent location.

USDA Loans

USDA loans were created to help encourage home buyers to move to rural areas. These loans can cover 100% of the home’s value – meaning no down payment is necessary. However, they’re very limited. The home must be in a designated rural area, and the household income can’t exceed 115% of the median income in the area where the home is located.

This loan is a great option if you have a low to medium income and want to buy a home in a rural area. If you’re able to work remotely and are looking to move out of the city, this could be an option for you.

Keep in mind that Rocket Mortgage^® is no longer accepting USDA loan applications.

FAQs on New Hampshire first-time home buyer programs and grants

Here are a few frequently asked questions for first-time home buyers in New Hampshire.

Does New Hampshire have first-time home buyer programs?

Yes – the Department of Housing and Urban Development offers home buying resources across the nation and specifically in New Hampshire.

Do I need to take a New Hampshire first-time home buyer class?

Most first-time home buyer and down payment assistance programs in New Hampshire require borrowers to participate in a first-time home buyer class. This class can often be done online.

Is there a first-time home buyer tax credit in New Hampshire?

Yes – the New Hampshire mortgage tax credit can save you up to $2,000 a year over the life of your mortgage.

What credit score do I need for first-time home buyer assistance in New Hampshire?

Each program has its own requirements, but the general requirement is for borrowers to have at least a 620 credit score.

The bottom line

New Hampshire is a beautiful place to live. Whether you were born there or you want to try it out, be sure to take advantage of the statewide programs and grants available to help first-time home buyers. If you’re ready to buy, start the approval process with Rocket Mortgage today.