Easy access to mountains, the beach, and plenty of hiking and biking trails make New Hampshire the ideal place for any outdoor enthusiast. The natural scenery and gorgeous views make this small state mighty in opportunities. If you are considering buying a home in this New England gem, you might be considering opting for financial assistance to make your dream a reality.
When they find their dream home to be just slightly out of reach, many first-time homebuyers seek financial assistance. A secondary loan or grant to cover a specified amount for down payment or closing costs may close the affordability gap for new buyers.
Financial assistance programs often vary by state, and some by city or region. Here are several opportunities for new homebuyers in New Hampshire to consider.
Who qualifies as a first-time homebuyer in New Hampshire?
According to New Hampshire Housing Finance Authority, an individual is considered a first-time homebuyer if he or she has not owned a home in the past three years. There are some exceptions to this, such as homeowners buying in designated target areas. When reviewing the guidelines for each program, check the specific requirements for exceptions.
Statewide First-Time Buyer Programs
The following programs are available statewide to New Hampshire residents.
Home Start Homebuyer Tax Credit
Qualified first-time borrowers may take advantage of the Home Start Homebuyer Tax Credit through New Hampshire Housing. This program offers a federal Mortgage Credit Certificate (MCC), which allows the homebuyer to claim a tax credit for a portion of the mortgage interest paid per year up to $2,000. This may help the homebuyer qualify for a mortgage by boosting their income. This credit may be used annually as long as the individual occupies the home. Other eligibility requirements may apply, so be sure to visit the New Hampshire website for details.
Statewide Non First-Time Buyer Programs
While the above programs are strictly available for first-time homebuyers, there are other statewide programs to assist individuals looking to move from one home they have owned into another.
Home Flex Plus
New Hampshire Housing offers down payment and closing cost assistance for up to four percent of the mortgage loan amount – in the form of a second mortgage. This secondary loan is forgivable after four years if the home has not been refinanced or sold, and the borrower hasn’t declared bankruptcy. Borrowers with incomes up to $135,300 are eligible to apply for the Home Flex Plus program. Other restrictions may apply, so be sure to website the New Hampshire Housing website for details.
Home Preferred Plus
Similar to the Home Flex Plus program, the Home Preferred Plus program offers down payment and closing cost assistance in the form of a secondary loan. This loan is also forgivable after four years, given the borrower has not filed for bankruptcy, sold, nor refinanced the home. The Home Preferred Plus program, however, is a better fit for eligible borrowers with incomes up to 80 percent Area Median Income (AMI). Be sure to see website for other qualifications and to apply.
Home Preferred Plus Over 80 Percent AMI
Individuals whose income exceeds 80 percent of the Area Median Income (AMI) may be eligible for conventional financing through the Home Preferred Plus Over 80 percent AMI program. Visit New Hampshire Housing website for details and to learn more.
New Hampshire’s Home Preferred program offers conventional mortgage financing with low, discounted mortgage insurance options. This is an ideal option for those seeking low monthly payments with reduced insurance premiums. Income limits and credit restrictions may apply, so be sure to visit the website for more information.
Home Preferred Manufactured Housing ROCs
New Hampshire Housing’s Home Preferred Manufactured Housing ROCs offers homebuyers in qualified New Hampshire Resident-Owned Communities (ROCs) with affordable conventional financing options. These include low fixed rates, low down payments, and low mortgage insurance options for borrowers with incomes up to 80 percent Area Median Income (AMI). See website for other requirements and the official list of qualifying communities.
Homebuyer Programs by Location
In addition to statewide programs, there are often homebuyer assistance programs based in different cities and regions of a state.
Residents of Manchester can search the city government website for resources for first-time homebuyers. The City of Manchester website offers a list of resources and funding for regional and city-wide programs to promote area homeownership. Be sure to visit the website to learn more about available grants and programs.
The Portsmouth HomeTown Program provides financial assistance to individuals and families through closing cost assistance. Eligible borrowers will meet income and credit requirements. If you’re considering the City of Portsmouth for your first home, visit their website for details and to learn how to apply.
Purchase Your Dream Home
When searching for your new home, it’s easy to become overwhelmed with the financial aspect. Don’t let your dream home slip away without reviewing all of your options to close the affordability gap. You may find that your dream New Hampshire abode is within reach by taking advantage of these financial assistance opportunities. Check out these resources and you’ll be settling into your new space in no time!
The links on this site were researched by NewHomeSource. This is as cohesive a list as possible. Individual homebuyers should contact entities to fully understand requirements and processes.