Down Payment Assistance Programs for First-Time Homebuyers in New Hampshire

New Hampshire is known for its stunning natural landscapes and is a popular travel destination for tourists and nature enthusiasts. The small towns along with vibrant fall foliage and historical sites have made it a popular holiday destination.

However, the housing sector of New Hampshire is in a state of crisis with rising home prices, and a shortage of available properties/housing units is affecting prospective homeowners, particularly first-time homebuyers. The state is reportedly reeling with a reported shortage of approximately 23,500 housing units and the state would require around 90,000 additional units to meet the growing demand.

Amid the challenges, down payment assistance programs have been the game changer as it provides financial support which makes it affordable for individuals to turn their dreams of being a homeowner into reality.

Looking for Assistance in a Specific Part of New Hampshire?

A study showed that the minimum down payment for purchasing a home in New Hampshire can be approximately $15,189. This is a testament to how this particular cost can affect your finances.

Down payment is touted to be the biggest hurdle towards home ownership. There are various programs that help potential buyers in different localities in New Hampshire by providing cash assistance to cover a certain amount or portion. The assistance may even come as a forgivable mortgage, which is an attractive option for first-time homebuyers.

Certain assistance programs provide relief to individuals from low-income levels and housing needs. They are reshaping the housing sector in the following areas by making homeownership accessible.

Down Payment Assistance in New Hampshire

These down payment assistance programs in New Hampshire are designed to help prospective homebuyers overcome financial barriers associated with purchasing a home. Stairs Financial provides a comprehensive look into the initiatives that individuals can avail of as a financial assistance option.

Home Flex Plus Program

The Home Flex Plus Program provides cash assistance to first-time homebuyers in the state. Applicants can use the funds to cover their down payment, closing costs, and amount of prepaid items when they purchase a house.

Fundamentals

• Assistance Type: Second mortgage
• Sponsor: New Hampshire Housing
• Assistance Amount: 3% of the loan amount

Eligibility Requirements

• The applicant should have a minimum credit score of 620
• The household income of the applicant should be $116,300 or lower (the price may vary depending on the income limit
• The purchased property should become the applicant’s primary residence
• The applicant should complete a homebuyer education course
• The property purchased must serve as the applicant’s primary residence

1st Generation Homebuyer Program

The 1st Generation Homebuyer Program facilitates those first-time buyers who meet specific criteria related to their homeownership history or those from low-to-moderate income families.

Fundamentals

• Assistance Type: Interest-free forgivable second mortgage after five years
• Sponsor: New Hampshire Housing
• Assistance Amount: $35,000 (at maximum)

Eligibility Requirements
 

• The purchased property should be a single-family unit
• The house should serve as an applicant’s primary residence
• Applicants should not have owned a home as their principal residence within the last three years)
• The applicant’s parents, guardians, or non-borrowing spouses must also not have owned a home in the applicant’s lifetime.
• Borrowers should complete an in-person homebuyer education course offered by credible organizations such as AHEAD, HOMEteam, or The Housing Partnership.

New Hampshire Down Payment Assistance Program FAQs

Who is eligible for down payment assistance in New Hampshire?

Applicants or first-time homebuyers are required to meet income limits, credit score criteria, and other requirements to become eligible for financial assistance. Borrowers may have to purchase a home that meets the program’s criteria, such as price limits or location restrictions.

What happens if I sell my home or move out before the loan is repaid?

Answer: The terms for repaying Down Payment Assistance differ by program with some assistance coming in the form of a forgivable loan, meaning borrowers don’t have to repay it if they meet certain conditions, such as living in the home for a specified period.