In New Hampshire, assistance programs for first time home buyers are limited, to say the least. After thorough research we were able to uncover only two programs at the state level and none at the county or local level. With such limited opportunities it's important that first time home buyers in New Hampshire do their due diligence in securing a mortgage commitment before agreeing to close on a real estate transaction.
In this small New England state, the government entity responsible for administering housing programs is known as the New Hampshire Housing Finance Authority. This agency works with banks and lending institutions, federal programs, and other agencies at the state level in order to coordinate housing resources. The agency currently lists half a dozen home buying assistance programs, two of which are directly aimed exclusively at first time buyers.
First Mortgage Program
New Hampshire's First Mortgage program is intended for single-family dwellings being purchased by low to moderate income individuals. The main features of this loan program include low down payment, a 30-year fixed-rate mortgage with options for 2, 1, or 0 points, and down payment and closing cost assistance if needed. Like most state programs, the First Mortgage program does have eligibility requirements that all applicants must meet.
Those requirements include income restrictions, purchase price restrictions, and the requirement that applicants be first time buyers. First time home buyers are defined as those who have never owned a home or who have not owned interest in a principal residence in the three years prior to application. There are some targeted areas in the state where the first time home buyer restriction is lifted for these mortgages. To apply for a New Hampshire First Mortgage applicants would go through a participating local lender.
Cash Assistance Option
The Cash Assistance Option is offered in conjunction with A New Hampshire First Mortgage, and is intended to help first time home buyers who have not saved up enough cash to pay for down payment and closing costs. This cash assistance can only be used for down payment and closing costs, or upfront deposits into an escrow account. Approved applicants can choose to receive the assistance in the form of a grant at either 2% or 4% of their total loan value.
One of the more interesting aspects of this cash grant assistance comes by way of repayment restrictions. As a means of encouraging first time home buyers to remain in their new home, the grant is totally forgiven if the home buyer maintains the property as his primary residence for a minimum of 48 months. If he sells the property or takes permanent residence elsewhere within the first 48 months of ownership, he must pay the entire grant amount.
County and Local Options
It is common for states to offer first time home buyers assistance through programs at the county or local level. Therefore, it was surprising to search the HUD website and find no mention of such programs in New Hampshire. That's not to say they are never offered, but that there may not be any available at this time.
When first time home buyer programs are available at the county and local level, they are generally down payment assistance programs, closing cost programs, or rehab assistance loans. They generally will have restrictions, just as the state programs, including income eligibility and residency requirements. If you plan to buy your first home in New Hampshire in the near future be sure to regularly check with HUD for listings of new programs. You can also check with your real estate agent and mortgage lender, as they would have the appropriate information.