The New Hampshire Housing Finance Authority offers special mortgage loan programs, down payment assistance and closing cost assistance for residents of New Hampshire who want to buy a home. In most cases, these programs are intended for the most part for first time home buyers and those buyers who need financial assistance to become home owners.
What Mortgages Are Offered By The New Hampshire Housing Finance Authority?
- New Hampshire offers the Voucher Assisted Mortgage Option. This program is an excellent opportunity for extremely low income buyers to purchase a home. Homebuyers using this program can use their Housing Choice Voucher (Section 8) as a portion of their monthly mortgage payment which helps them qualify.
- The Single Family Mortgage Program offers first mortgage loans at below market rates. 40 year & 30 year fixed rate mortgage options available. These loans are completed by participating banks and lenders in the state. Some 2-4 unit properties can be purchased under the program guidelines. Be sure to ask you lender if the property that you are interested in would apply. To be eligible for a special state sponsored loan in the state of New Hampshire you must not have owned a property in the last three years. In other words, you must be a first time home buyer to use this program.
You are only allowed to finance primary residences. Second homes and investment property will not qualify under this type of mortgage program. This type of loan program is subject to a recapture tax. You must occupy and not sell the property for nine years after the closing date. If you are subject to a recapture, the IRS requires that you pay the tax within 90 days of the closing.
Additional First Time Home Buyer And Down Payment Assistance Programs
The NeighborWorks HomeOwnership Center sponsored by Bank of America is a program developed by NeighborWorks Greater Manchester, a non profit community housing group that has assisted over 600 families buy homes in New Hampshire. The program offer buyers special low interest rate mortgages no matter where they want to purchase a home in New Hampshire.
Important Qualifying Factors for the NeighborWorks HomeOwnership Center Program
You must attend an 8 hour home buyer educational workshop to be eligible. Down payment and closing cost assistance is available through this program for qualified home buyers. You must contribute at least 1% of the down payment with your own money. There is no mortgage insurance. Loan approval is not based on the borrower's credit scores as with many other loan programs. The guidelines used to see if you can qualify for this loan are less strict than traditional conventional mortgages.
Closing Cost Assistance For NeighborWorks
Closing cost assistance offered through the NeighborWork program is in the form of a 2nd mortgage. The NeighborWorks HomeOwnership Center second mortgage will work in conjunction with the first mortgage. The first mortgage can be secured through the following lenders:
- St. Mary Bank
- Member’s First Credit Union
- TD Bank North
- Granite State Credit Union
- Centrix Bank
- Bellwether Community Credit Union
- Southern NH Bank
- New Hampshire Housing Finance Authority
- Neghborhood Housing Services of America
The Center works along side the City of Manchester to give down payment and closing cost assistance loans from the Cities Community Improvement Program funds to eligible low income households that purchase a home in Manchester New Hampshire.
The city of Nashua has through the Neighborhood Housing Services of Greater Nashua offers special affordable loan programs as well. Ask your lender about special NHSGN loan products that they may be able to offer you.
Recapture Tax May Be Due If You Sell Your Home
Because of the nature of these first time home buyer programs and how they are funded through State and U.S. Federal sources, some home owners my have to pay a recapture tax when they sell their home. You may be excluded from having to pay the tax if your household income does not go up significantly over the life of the loan or there is no capital gain on the property. See What Is Recapture Tax for more information. Also, check with local lender for more information on the recapture tax.
Are There Rural Home Loans Available in New Hampshire?
New Hampshire does have Rural Development Housing Programs. These loans allow an individual or family to borrow up to 100% of the appraised value of the property. This will get rid of the need to have a down payment for purchase. Again, you must qualify for this loan program through a local lender.
To get additional information about down payment assistance programs, or to find out more about mortgage programs please complete the information below:
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