Hard money lenders in New Hampshire: usury, licensing, foreclosure speed and costs
New Hampshire in one sentence, from the lender’s chair: new Hampshire combines no usury cap with a fast non-judicial sale (two to four months, no redemption), making it one of New England’s most lender-friendly states — offset by a buyer-paid 0.75% transfer tax on every acquisition and exit.
| Foreclosure process | Non-judicial |
|---|---|
| Typical time to sale | 2 to 4 months from first notice or filing |
| Post-sale redemption | New Hampshire has no statutory right of redemption after a foreclosure auction. |
| Deficiency judgment | Allowed |
| Usury | New Hampshire has no usury cap for loans with a written agreement, so hard money pricing is unrestricted; the 10% default rate applies only where no rate is agreed. |
| 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. |
| Median home price (approx.) | $490,000 · property tax about 1.93% |
New Hampshire usury law and the business-purpose loan
New Hampshire has no usury cap for loans with a written agreement, so hard money pricing is unrestricted; the 10% default rate applies only where no rate is agreed.
Usury statutes are amended and interpreted by courts; this is an orientation, not a legal opinion. Any loan structured near a cap should be reviewed by a lawyer licensed in the state.
Do hard money lenders need a license in New Hampshire?
New Hampshire requires a mortgage banker or broker license for loans secured by residential property, and the Banking Department construes exemptions narrowly; business-purpose loans to entities on non-owner-occupied property are generally exempt, but lenders should confirm. Verify a lender or originator on NMLS Consumer Access, and read how to vet a lender.
Recovery timeline for lenders in New Hampshire
Speed of recovery is the first thing a hard money lender prices. In New Hampshire, foreclosure is non-judicial: New Hampshire mortgages contain a power of sale exercised without a court: the lender mails a notice of sale to the borrower at least 45 days before the auction and publishes it once a week for three weeks, the first publication at least 20 days before the sale. The auction is held on the property or as the notice states. From the first formal notice or filing, a typical uncontested case reaches a sale in 2 to 4 months.
New Hampshire has no statutory right of redemption after a foreclosure auction. The homeowner may pay the full amount due and stop the sale at any time before it occurs.
A New Hampshire lender may sue the borrower for the deficiency remaining after a foreclosure auction. The lender must have conducted the sale in good faith and with due diligence to obtain a fair price; a sale that fails this standard can reduce the deficiency. See what happens when a hard money loan defaults and the New Hampshire foreclosure process for the complete timeline.
Costs on the way in and out
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. A flip pays this twice — once buying, once selling — so it belongs in the deal budget from the first spreadsheet. Property taxes run about 1.93% of value a year in New Hampshire (roughly $9,457 on the $490,000 median) and accrue through the holding period.
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 investor markets
Manchester, Nashua and the southern tier near the Massachusetts border carry investor volume, with Concord, Portsmouth and the Seacoast as higher-priced niches and the Lakes Region as a seasonal rental market; multifamily in Manchester is a classic play.
Treat this as a starting list for research, not a recommendation. Every metro above has neighborhoods where flips lose money.
Frequently asked questions
Is hard money lending legal in New Hampshire?
Yes. New Hampshire has no usury cap for loans with a written agreement, so hard money pricing is unrestricted; the 10% default rate applies only where no rate is agreed. New Hampshire requires a mortgage banker or broker license for loans secured by residential property, and the Banking Department construes exemptions narrowly; business-purpose loans to entities on non-owner-occupied property are generally exempt, but lenders should confirm.
How fast can a hard money lender foreclose in New Hampshire?
Under New Hampshire’s non-judicial process, a typical uncontested case takes 2 to 4 months from the first notice or filing to the sale. New Hampshire has no statutory right of redemption after a foreclosure auction.
What does a typical hard money loan cost in New Hampshire?
Rates of 9% to 14% and 1 to 4 points are the national range. As an illustration only: $416,500 borrowed at 11% with 2 points for nine months is about $42,692 in interest and points, plus fees and carrying costs. See rates, points and LTV.
The playbook
- Hard money default: what happens, how fast, and how to avoid it
- Private money vs hard money: individuals, funds and what each expects
- Hard money for land and commercial property: lower leverage, longer exits
- How to find and vet hard money lenders: sources, questions, red flags
Other New Hampshire pages: first-time home buyer programs in New Hampshire · foreclosure in New Hampshire.