How should a first-time buyer set a budget?
Set your budget by the monthly payment you are comfortable with, not by a price, because your mortgage payment is more than principal and interest. In New Hampshire, property taxes are often the second-largest part of the payment, and they vary a lot from town to town. Homeowners insurance, and Mortgage insurance (PMI or MIP) Insurance that protects the lender on many loans with a smaller down payment. It's added to your payment and can often be removed later. See the full glossary on many loans, are added on top.
Start with a monthly amount you are comfortable paying, then work back to a price range. The affordability calculator and the NH payment calculator both include property taxes so the estimate is closer to real life.
Do I count as a first-time buyer?
You may count as a first-time buyer even if you have owned before. Many programs define a first-time buyer as someone who hasn't owned a home in the past three years. If you sold a home a while ago, ask whether you qualify before you rule these programs out.
Which loan programs can first-time buyers use in NH?
First-time buyers in New Hampshire can compare conventional, FHA, VA, USDA and NH Housing programs before they shop.
- Conventional loans work well for buyers with solid credit and offer low down payment options for qualified buyers.
- FHA loans have flexible credit guidelines and allow gift funds toward the down payment. See the FHA loan guide.
- VA loans are for eligible veterans, service members and some surviving spouses. See the VA loan guide.
- USDA loans cover homes in eligible rural and suburban areas, including parts of many southern NH towns, with household income limits. See the USDA loan guide.
- NH Housing offers programs for eligible New Hampshire buyers, some with help toward the down payment and closing costs. Income and purchase price limits apply, and a homebuyer education course may be required. See the NH Housing guide.
Looking at condos? See condo financing in NH and the FHA-approved condo list by town. Want room for family or a rental unit? See ADUs and in-law apartments.
Is there a first-time homebuyer tax credit in New Hampshire?
Not from the state. New Hampshire has no income tax on wages, so there's no state homebuyer credit. NH Housing has offered a federal one for eligible first-time buyers, the Home Start Homebuyer Tax Credit: a Mortgage Credit Certificate that turns part of the mortgage interest you pay each year into a credit on your federal taxes. It has income and purchase price limits, doesn't pair with every NH Housing loan, and has to be approved before you close, so ask Tom whether it's open and fits your loan. Help with the down payment and closing costs is separate; see the NH Housing guide and where your down payment can come from.
When should I get pre-approved?
Get pre-approved before you tour homes. A pre-approval means your credit, income and assets have been reviewed. Sellers and agents expect one with an offer, and it tells you your real range before you fall for a house. Starting a conversation with Tom never pulls your credit; a credit check happens only when you apply. Gather the documents on this checklist to move faster, and see how pre-approval works. Checking your own credit first is free and doesn't affect your scores: credit and your mortgage.
What New Hampshire costs should buyers plan for?
New Hampshire buyers should plan for the real estate transfer tax, prepaid taxes and insurance, and inspections.
- Real estate transfer tax A New Hampshire tax on property sales, $0.75 per $100 of the price for both the buyer and the seller. See the full glossary: $0.75 per $100 of the price, paid by both the buyer and the seller. The closing cost guide has a worked example.
- Prepaid taxes and insurance: your first escrow deposits are collected at closing.
- Inspections: beyond a home inspection, many NH homes call for radon testing, and homes on a private well or septic system may need water and septic tests (see the well and septic guide). Service Connect lists local pros as they join.
What happens between an accepted offer and closing?
After your offer is accepted you'll complete the application, receive a Loan Estimate within three business days, and the lender orders an appraisal. An underwriter reviews your file and may ask for a few more documents. You'll get a Closing Disclosure A five-page form you receive at least three business days before closing that shows your final loan terms and costs. See the full glossary at least three business days before closing. Many purchases close in about 30 to 45 days. What happens after you apply covers each step.
Tools for this topic: Rent vs buy · Affordability calculator · Transfer tax calculator
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.