First Time Home Buyer
Programs in New Hampshire
Complete First Time Home Buyer Programs Available in New
Hampshire.
The state agency created by the legislature in New Hampshire to
offer first time home buyer programs is the New Hampshire Housing. Here is a
summary of the current first time home buyer programs that are offered:
Cash Assistance Option
This easy option to our Single Family Mortgage Program provides a cash
assistance grant equal to a maximum of 4% of the loan amount to help borrowers
defray the cost of down payment, closing costs, and prepaid escrow expenses
associated with purchasing a home. Borrowers must contribute a minimum of 1%
(based on purchase price) using their own funds (excluding gifts). No cash back
is allowed at closing. Income, purchase price and all other guidelines follow
the Single Family Mortgage Program. There is no monthly payment on the cash
assistance grant portion.
If the mortgage is paid off within the first 48 months, the full amount of the
grant is due. After 48 months, the full amount of the grant is forgiven.
Single Family Mortgage Program
The Single Family Mortgage Program is designed primarily for first-time home
buyers and provides 30-year mortgages with below market interest rates, options
with points or with no points, low down payment requirements, new cash
assistance option, and other flexible underwriting criteria. The interest rate
available is usually below conventional mortgage interest rates. To qualify for
the program, borrowers must meet certain income limits and purchase price
limits.
2-Under Option
The 2-Under Option, an easy fourth option to the Single Family Mortgage Program,
is targeted to borrowers making 60% or less of statewide median income. Offered
through New Hampshire Housing's network of Participating Lenders, 2-Under
provides financial assistance to low-income borrowers to be used toward the
purchase of their first home. New Hampshire Housing provides a subsidy to
buydown the current Single Family Mortgage Program interest rate by two percent
(2%) for the first three years and one percent (1%) for the next two years. The
subsidy is a 0% non-amortizing mortgage rider due upon sale if the property is
sold within the first 10 years, or forgiven after 10 years.
The 2-Under Option follows the rules and guidelines of the Single Family
Mortgage Program with the following additional requirements:
Household must have at least one dependent child
Borrower must be a first-time home buyer (both in targeted and non-targeted
areas)
Borrower must not be receiving mortgage assistance from any other source
Home ownership education/counseling is required
Total household income cannot exceed 60% of statewide median income. (currently
$42,600)
Purchase/Rehabilitation Program
The Authority also offers a Purchase / Rehab Program that helps new home buyers
purchase a home in need of repairs. This program can provide up to $25,000 to
make improvements to enhance the livability of the buyer's new home.
For complete details on these first time home
buyer programs available to New Hampshire residents, visit the
New Hampshire Housing
website.
It is highly recommend that you also visit the
First Time Home Buyer Grants page
for free assistance with the down payment.
Best Lender For First Time Home Buyer Loans
Unfortunately, some lenders do not like
to work with first time home buyers (due to not having a track record), and prefer instead to only provide
mortgages to people who have previously owned a home.
If you do not need help with the down payment and are not
in need of any state program, but simply want to apply for a mortgage,
we recommend ING DIRECT Orange Mortgage
They have great rates, an easy online application, and welcome first
time home buyers. Additionally they have not been as severely hurt by the
subprime mortgage crisis and are still approving the majority of applications.
Other First Time Home Buyer Programs & Resources
