New Hampshire mortgage laws explained: from closing to foreclosure
Ask a New Hampshire closing attorney or escrow officer what makes this state different and the answer is usually a list. New Hampshire pairs a lawyer-led closing tradition and a generous $120,000-per-spouse homestead with a brisk 45-day power-of-sale foreclosure and a transfer tax split evenly between buyer and seller.
| Closing practice | Attorney closing state |
|---|---|
| Community property | No — common-law (separate property) state |
| Mortgage recording tax | New Hampshire taxes the deed, not the note: the Real Estate Transfer Tax under RSA 78-B is $0.75 per $100 paid by each of buyer and seller, for $1.50 per $100 combined, and it is not due on a refinance. |
| Transfer tax (deed) | 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. |
| Usury ceiling | 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. |
| Foreclosure | Non-judicial · 2 to 4 months to sale · deficiency: allowed |
Closing practice: attorney, title or escrow
New Hampshire closings are conducted by a settlement agent who is very often an attorney or a law-firm-owned title agency, although the state does not formally require a lawyer and licensed non-attorney agents also close loans. The closing attorney typically examines title at the county Registry of Deeds, prepares the deed, and disburses funds; New Hampshire is a wet-funding state. Buyers commonly pay between several hundred and roughly a thousand dollars for the attorney or settlement portion.
Spouses, community property and the homestead
New Hampshire is a separate-property state following equitable distribution at divorce; only the applicant’s own debts and income go into the loan file. Because RSA 480 grants each spouse a homestead right, New Hampshire lenders ask a non-borrowing spouse to sign the mortgage to release that right against the lien, even where the spouse is not on the deed. Joint tenancy with survivorship is the usual vesting for married buyers.
RSA 480:1 exempts $120,000 of equity per person in the family home from general creditors, so a married couple can shelter $240,000; the figure was raised in 2016 and is not indexed. The exemption cannot be asserted against a mortgage the owner signed, property taxes, or a lien for work done on the house. New Hampshire has no statewide homestead tax break; relief comes from town-level elderly and veteran exemptions under RSA 72 and the Low and Moderate Income Homeowners Property Tax Relief rebate on the state education tax.
Taxes and fees at recording
New Hampshire taxes the deed, not the note: the Real Estate Transfer Tax under RSA 78-B is $0.75 per $100 paid by each of buyer and seller, for $1.50 per $100 combined, and it is not due on a refinance. A mortgage is recorded at the county Registry of Deeds for a per-page fee plus the small LCHIP conservation surcharge. There is no mortgage, intangible or documentary stamp 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.
Prepayment penalty law in New Hampshire
RSA 397-A, the law licensing nonbank mortgage bankers and brokers, is generally read to bar prepayment penalties on first-mortgage home loans made by those licensees, which is why penalties are almost never seen on New Hampshire purchase loans. Loans from banks and credit unions chartered elsewhere may fall outside that rule but remain subject to federal qualified-mortgage limits. Ask the Banking Department for the current statutory text before assuming a penalty is or is not enforceable.
High-cost and predatory lending limits
New Hampshire has no separate high-cost home loan statute and relies on HOEPA for triggers, but RSA 397-A lists prohibited practices for licensees — misrepresentation, undisclosed fees, failing to make good on a commitment — and the Banking Department may order restitution. The Consumer Protection Act, RSA 358-A, adds a private right of action with double or treble damages for willful violations, and it has been applied to mortgage brokers. Foreclosure rescue schemes are separately regulated by RSA 479-B.
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.
Licensing and the state regulator
The New Hampshire Banking Department licenses mortgage bankers, brokers and loan originators under RSA 397-A and mortgage servicers under RSA 397-B, all through the NMLS. State-chartered banks and credit unions are supervised by the same Department under different chapters, and a person financing the sale of his own home is generally not a licensee. Consumers can verify any license on NMLS Consumer Access or through the Department’s Concord office.
State disclosures beyond TRID
New Hampshire does not add a state rescission period to federal rules, but its power-of-sale foreclosure statute, RSA 479:25, requires the mortgagee to serve the owner with notice at least 45 days before the sale, stating the right to petition the superior court to enjoin it, and to publish the sale three times in a local newspaper. Licensees under RSA 397-A must honor written commitments and disclose their fees before taking an application. The state Homeowner Assistance Fund, administered by New Hampshire Housing, remains the first call for a borrower who falls behind.
If the loan defaults
New Hampshire uses a non-judicial process and a typical uncontested case reaches a sale in 2 to 4 months. New Hampshire has no statutory right of redemption after a foreclosure auction. A New Hampshire lender may sue the borrower for the deficiency remaining after a foreclosure auction. The full timeline, redemption and mediation rules are on foreclosure in New Hampshire; the investor view — usury, licensing exemptions, recovery speed — on hard money in New Hampshire.
Frequently asked questions
Do I need a lawyer to close a mortgage in New Hampshire?
New Hampshire closings are conducted by a settlement agent who is very often an attorney or a law-firm-owned title agency, although the state does not formally require a lawyer and licensed non-attorney agents also close loans. The answer depends on local practice more than on a single statute; the Loan Estimate will show who is expected to conduct the settlement and what it costs.
Does New Hampshire allow prepayment penalties on home loans?
RSA 397-A, the law licensing nonbank mortgage bankers and brokers, is generally read to bar prepayment penalties on first-mortgage home loans made by those licensees, which is why penalties are almost never seen on New Hampshire purchase loans. Check the Loan Estimate: the “Prepayment penalty” line on page 1 must say yes or no, and the amount and term if yes.
What does New Hampshire charge to record a mortgage?
New Hampshire taxes the deed, not the note: the Real Estate Transfer Tax under RSA 78-B is $0.75 per $100 paid by each of buyer and seller, for $1.50 per $100 combined, and it is not due on a refinance. 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.
Who licenses mortgage lenders in New Hampshire?
The New Hampshire Banking Department licenses mortgage bankers, brokers and loan originators under RSA 397-A and mortgage servicers under RSA 397-B, all through the NMLS. Every individual originator must also hold an NMLS identifier, printed on the application and the Loan Estimate; it can be checked on NMLS Consumer Access.
Federal layer: TILA / Reg Z · RESPA · TRID disclosures · ECOA · Fair Housing Act · all federal regulations. Buying here: first-time buyer programs in New Hampshire.