First-time home buyer programs in New Hampshire: assistance, loans and real costs
New Hampshire has no income or sales tax, which it makes up for with the third-highest property tax rate in the country and a buyer-paid transfer tax — a first-time buyer should budget for both before counting the tax credit. That is the one sentence to keep in mind while reading the programs below.
| State housing agency | New Hampshire Housing Finance Authority (New Hampshire Housing) |
|---|---|
| Median home price (approx.) | $490,000 — statewide order of magnitude; metros differ |
| 3.5% / 5% / 20% down | $17,150 / $24,500 / $98,000 on the median |
| Property tax (effective) | about 1.93% — roughly $9,457 a year on the median |
| Mortgage credit certificate | Yes — mortgage credit certificate offered |
| Transfer tax | New Hampshire’s real estate transfer tax is $1.50 per $100 (1.5%) in total, split equally by statute — 0.75% paid by the buyer and 0.75% by the seller. |
The New Hampshire housing agency’s programs
New Hampshire Housing’s Home Flex Plus (FHA, VA, USDA) and Home Preferred Plus (conventional) programs pair first mortgages with cash assistance, and the Homebuyer Tax Credit is the state’s Mortgage Credit Certificate; programs are open to repeat buyers within income limits.
Down payment assistance: how it is structured
The Plus options provide cash assistance of a few percent of the loan amount (commonly 3% to 4%) as a second mortgage forgiven after four years of occupancy, covering down payment and closing costs, in exchange for a slightly higher first-mortgage rate.
Read the lien type before the dollar figure: grant (no repayment), forgivable second (repaid only if you leave early), deferred second (repaid at sale or refinance), or repayable second (a monthly payment that counts in your debt-to-income ratio). See how down payment assistance programs work.
Is there a first-time buyer tax credit?
New Hampshire Housing’s Homebuyer Tax Credit is a Mortgage Credit Certificate worth a federal tax credit on a portion of annual interest for the life of the loan, available to first-time buyers within income and price limits.
Eligibility limits
New Hampshire Housing uses statewide income limits by household size and a purchase price limit; a 620 minimum credit score and homebuyer education are required, and the home must be a primary residence.
Transfer taxes and closing costs in New Hampshire
New Hampshire’s real estate transfer tax is $1.50 per $100 (1.5%) in total, split equally by statute — 0.75% paid by the buyer and 0.75% by the seller.
The buyer’s 0.75% share of the transfer tax makes New Hampshire closing costs higher than in neighboring states; budget 3% to 4% of the price including title, attorney and lender fees. Sellers can pay a share of these costs within program limits — see seller concessions — and our closing costs guide covers the rest.
What the payment looks like on a $490,000 home
Worked on New Hampshire’s rough $490,000 median (your county may be far above or below) at an illustrative 6.5%: down payment, loan amount, principal and interest, and the monthly share of property tax at the state’s approximate 1.93% effective rate, or about $9,457 a year. Exclude nothing else from your own budget — insurance, PMI, HOA dues all apply.
| Structure | Down payment | Loan amount | P&I at 6.5% (30 yr) | Property tax / mo (est.) |
|---|---|---|---|---|
| FHA, 3.5% down | $17,150 | $472,850 | $2,989 | $788 |
| Conventional, 5% down | $24,500 | $465,500 | $2,942 | $788 |
| Conventional, 20% down (no PMI) | $98,000 | $392,000 | $2,478 | $788 |
Illustrative rate and approximate state figures — not an offer or a quote. Full payment tables cover $150,000 to $800,000 at 5% to 8%; the affordability guide explains how lenders size the loan.
Frequently asked questions
Does New Hampshire have down payment assistance for first-time buyers?
The Plus options provide cash assistance of a few percent of the loan amount (commonly 3% to 4%) as a second mortgage forgiven after four years of occupancy, covering down payment and closing costs, in exchange for a slightly higher first-mortgage rate. Program terms and amounts change with funding — confirm the current version with New Hampshire Housing Finance Authority or an approved lender before you count on a figure.
Is there a first-time home buyer tax credit in New Hampshire?
New Hampshire Housing’s Homebuyer Tax Credit is a Mortgage Credit Certificate worth a federal tax credit on a portion of annual interest for the life of the loan, available to first-time buyers within income and price limits. The credit is worth a percentage of the mortgage interest you pay each year, up to a federal cap, and can be combined with many first-mortgage programs.
What are typical closing costs when buying a house in New Hampshire?
The buyer’s 0.75% share of the transfer tax makes New Hampshire closing costs higher than in neighboring states; budget 3% to 4% of the price including title, attorney and lender fees. New Hampshire’s real estate transfer tax is $1.50 per $100 (1.5%) in total, split equally by statute — 0.75% paid by the buyer and 0.75% by the seller.
Guides for first-time buyers
- Earnest money explained: how much, who holds it, and how you lose it
- Appraisal gap: what happens when the home appraises below your offer
- Down payment assistance programs: how they work and how to find yours
- How much house can I afford? The math lenders actually use
Other New Hampshire pages: hard money rules in New Hampshire · foreclosure in New Hampshire.