New Hampshire first-time homebuyer assistance programs
Thinking about buying your first home? It can be an exciting — and sometimes daunting — process, and where you buy can be as important as what you buy. New Hampshire is one of the smallest states by landmass, but it has lots to offer, including a booming economy, highly rated public schools and colleges, and natural amenities like access to the coast, mountains, lakes and more.
First-time homebuyers are likely to find a costly housing market in New Hampshire. As of Jan. 2025, home prices were up more than 9 percent year-over-year, according to Redfin. It’s also a fairly competitive market with only about two months’ supply of homes on the market, which means it’s more of a seller’s market.
If you’re a first-time homebuyer looking for property in The Granite State, consider starting with the New Hampshire Housing Finance Authority, the state’s agency for affordable housing and down payment assistance programs.
New Hampshire housing market statistics
- Median home sales price, as of Jan. 2025 (Redfin): $488,000
- Median down payment, as of Dec. 2024: (ATTOM): $89,800
- Most affordable counties, as of Dec. 2024 (ATTOM): Cheshire, Coos, Sullivan
New Hampshire first-time homebuyer loan programs
Many of New Hampshire’s loan programs include down payment and closing cost assistance as well.
New Hampshire Housing Home Flex Plus program
The New Hampshire Housing Finance Authority (also known as New Hampshire Housing) offers several mortgage programs, including Home Flex Plus, which comes with an FHA, VA or USDA loan and down payment and closing cost assistance.
The assistance comes as a second mortgage that can be forgiven in full after the fourth anniversary of the closing date, unless you sell your home, refinance the first mortgage or file for bankruptcy, in which case the loan must be repaid.
New Hampshire Housing Home Preferred Plus program
The Home Preferred Plus program through New Hampshire Housing works in partnership with Fannie Mae’s Home Ready program and provides up to 97 percent financing. The program includes cash assistance of between 2 percent to 4 percent of the loan amount along with discounted mortgage insurance. This program is available to both first-time and repeat homebuyers.
New Hampshire Housing House First program
This is the agency’s mortgage revenue bond program, which gives buyers lower-than-current-market rates on conventional and government-insured or -guaranteed loans. There’s also an option to add from $5,000 to $15,000 in down payment assistance.
New Hampshire Housing Purchase Rehab program
The New Hampshire Housing Purchase Rehab mortgage program is insured by the Federal Housing Administration (FHA) or guaranteed through Rural Development. The FHA 203(k) limited program provides up to $75,000 for your home rehabilitation costs, while the RD Rehabilitation option offers up to $35,000 to help cover improvements. The rehab programs are only available for use with the Home Flex and Home Flex Plus mortgage options.
New Hampshire down payment assistance and grants
1st Generation Homebuyer (1stGenHomeNH)
New Hampshire Housing provides $10,000 for first-generation homebuyers that can be used to cover down payment, closing costs and prepaid escrow expenses. The funds come in the form of a second mortgage with no payments and no interest. Funds must be repaid if you sell, refinance, file for bankruptcy or the home is no longer your primary residence.
Funding for this program is limited, so be sure to check on its current status.
City specific homebuyer assistance programs
Nashua First-Time Homebuyer Assistance Program
If you plan to purchase a home in Nashua, you may qualify for a grant of up to $10,000 to put toward a down payment, closing costs, interest rate buy-down or the purchase price of the home.
The city’s website has an application for the program.
Portsmouth Home Town Program
The city of Portsmouth offers this program in partnership with Citizens Bank. It gives first-time buyers a no-interest, 10-year second loan, which they can use for a down payment or closing costs when purchasing a home in the city.
To join the program, call Citizens Bank at (518) 229-8766 or the Portsmouth Community Development Department at (603) 610-7281.
Other New Hampshire homebuyer assistance programs
Homebuyer Tax Credit
In New Hampshire, first-time homebuyers can decrease their federal income taxes through a mortgage credit certificate (MCC), known as the Homebuyer Tax Credit. This annual credit equals up to $2,000 and can be used for the life of your mortgage, as long as the property remains your primary residence. It cannot be combined with the Home First mortgage program.
There are minimum household income and purchase price limits to qualify for an MCC, and these vary according to the county where your home is located and the size of your household. While the credit is geared toward first-time buyers, it might be waived for experienced homeowners if they’re purchasing in a special targeted area.
Other New Hampshire first-time homebuyer loans
While you’re considering your options as a first-time homebuyer in New Hampshire, be sure to explore nationally available programs as well:
- FHA loans: Insured by the Federal Housing Administration (FHA), these mortgages have looser eligibility criteria than conventional loans. If your credit score is 580 or above, the minimum VA loan down payment is just 3.5 percent.
- VA loans: You might qualify for one of these loans if you’re an active-duty military member, veteran or surviving spouse. Guaranteed by the Department of Veterans Affairs (VA), these loans don’t have a down payment requirement. They usually have lower rates, too.
- USDA loans: These mortgages, which are backed by the U.S. Department of Agriculture (USDA), don’t have a down payment requirement, either. However, to be eligible, you have to buy a home in a designated rural area and meet income limits.
- HomeReady and Home Possible loans: HomeReady and Home Possible are loan programs created by government-sponsored enterprises Fannie Mae and Freddie Mac. They’re specifically for first-time homebuyers, requiring only 3 percent down and having more flexible income requirements.
Get started
Now that you know some of your options as a first-time homebuyer in New Hampshire, your next step might be to connect with a mortgage lender. While the New Hampshire Housing Finance Authority doesn’t make loans or financing decisions, the agency provides a list of participating lenders, and the organization also services loans after closing.
Regardless of which program you choose, it’s important to first shop around for loan offers and compare mortgage rates and terms to get the best deal when buying a home in New Hampshire.
It can be helpful to read mortgage lender reviews when comparing your options, as well as to shop around for homeowners insurance options in New Hampshire to get a better idea of your total projected housing costs.
