New Hampshire Housing Down Payment Assistance Program

Your Guide to the New Hampshire Housing Down Payment Assistance Program: Up to $8,000 for First-Time Buyers

Dreaming of a place of your own in the Granite State, yet worried that the down payment will keep you on the sidelines? The New Hampshire Housing Down Payment Assistance Program could be the bridge between renting and owning. By offering as much as $8,000 in assistance, this initiative from New Hampshire Housing empowers eligible buyers to step confidently into homeownership.

Why Down Payment Assistance Matters in New Hampshire

Housing prices have risen steadily; the New Hampshire Realtors association pegged the 2023 median single-family sale price at roughly $440,000. Combine that with student debt, childcare costs, and persistent inflation, and saving even 3–5 percent for a down payment can feel like climbing Mount Washington in flip-flops.

Enter down payment assistance (DPA). By covering part—or sometimes all—of the upfront cash, programs such as the New Hampshire Housing Down Payment Assistance Program unlock doors for households who qualify for a mortgage yet struggle to scrape together the lump sum. Put another way: DPA transforms “someday” buyers into “today” homeowners.

How the New Hampshire Housing Down Payment Assistance Program Works

The program pairs with a New Hampshire Housing-backed first mortgage. Instead of offering a separate grant, it delivers a second mortgage (0% interest, no monthly payments) for up to $8,000. The funds can be applied toward both down payment and closing costs.

Eligibility Checklist

• At least one borrower must be a first-time homebuyer (no ownership interest in the prior three years), unless purchasing in a targeted area.
• Purchase price & household income must fall below county-specific limits published by New Hampshire Housing.
• Minimum credit score: generally 620; higher for certain loan types.
• Completion of an approved homebuyer education course.
• Primary residence only—no vacation homes or investment properties.

How Much Can You Really Get?

Up to $8,000, but percentage matters. Suppose you’re buying a $350,000 condo in Manchester with 3% down Federal Housing Administration (FHA) financing:

• Required down payment: $10,500 (3% of $350,000)
• DPA benefit: $8,000
• Out-of-pocket down payment left: $2,500

That’s nearly an 80% reduction in cash required upfront—proof that the New Hampshire Housing Down Payment Assistance Program can move the affordability needle in dramatic fashion.

Is the New Hampshire Housing Down Payment Assistance Program Only for First-Time Buyers?

You’ll find this question on nearly every “People Also Ask” list. In most cases, yes. The core mission is to elevate first-time buyers. However, New Hampshire designates certain census tracts as targeted areas—often communities in need of revitalization. If you purchase inside one of those zones, the first-time requirement is waived.

Even in targeted areas, all other criteria—income limits, credit score, homebuyer education—remain intact. A quick way to verify whether a property address qualifies is to use the interactive map on the New Hampshire Housing website or consult an approved lender.

Do I Need to Repay New Hampshire Housing DPA Funds?

Short answer: eventually, but not right away. The assistance is structured as a 0% interest second mortgage. You make zero monthly payments for the life of your first loan. Instead, repayment is triggered only when you sell, refinance, or pay off the primary mortgage.

Because the balance doesn’t balloon with interest, many buyers view the payback as a forced savings account. When you sell, appreciation often covers the second-lien payoff—leaving you with equity in your pocket. Still, factor this future obligation into long-term plans, especially if you intend to refinance within a few years.

A Step-by-Step Roadmap to Applying

1. Check your baseline numbers. Pull a free credit report, tally your income, and estimate a comfortable monthly housing payment.
2. Contact an approved lender. Only lenders vetted by New Hampshire Housing can process the DPA. Ask candid questions about rates, fees, and timelines.
3. Complete homebuyer education. The online course costs roughly $35 and takes five to six hours. You’ll receive a certificate valid for one year.
4. Gather documents. Two years of tax returns, recent pay stubs, and bank statements are the usual suspects.
5. Get pre-approved. Your lender issues a letter noting the DPA amount you qualify for, giving you bargaining power with sellers.
6. Go house hunting. Lean on a buyer’s agent who knows local inventory and targeted areas.
7. Lock in financing & close. At the closing table, the second-mortgage paperwork is signed alongside the first. Funds are wired directly into the transaction.

A Granite State Success Story

Riley, a 27-year-old nurse from Keene, spent months losing out on homes because she couldn’t compete with larger down payments. After learning about the New Hampshire Housing Down Payment Assistance Program, she paired $4,000 of her own savings with the full $8,000 DPA and secured a two-bedroom townhouse. Her favorite part? The mortgage payment now sits $150 below what she paid in rent—proof that smart leverage can flip the script.

Other Resources and Layering Options

Pairing programs can supercharge affordability:

• Home Possible® or HomeReady®: Conventional loans requiring as little as 3% down, often stackable with state DPAs.
• USDA Rural Development Loan: 0% down for eligible rural areas; some buyers use DPA to cover closing costs.
• Employer-Assisted Housing (EAH): A handful of NH employers offer grants or forgivable loans when staff buy locally.
• Energy-Efficiency Rebates: NHSaves provides up to $4,000 for heat-pump installs, reducing future utility bills and stretching your budget further.

Frequently Asked Questions

How long does approval take?
Most borrowers receive DPA approval within 30–45 days, running parallel to the primary loan underwriting.

What counts as a “targeted area”?
Specific census tracts defined by HUD and the IRS; your lender or New Hampshire Housing can verify with an address lookup tool.

Can I combine DPA with gift funds?
Yes. Many borrowers blend family gifts with the program, provided minimum borrower contribution rules are met.

Is there a minimum loan amount?
No formal minimum, but practical lender overlays sometimes start near $75,000.

Who services the second mortgage?
New Hampshire Housing retains servicing, simplifying future payoff requests.

Ready to Unlock Your New Hampshire Home?

The journey from renter to owner is rarely linear, yet programs like the New Hampshire Housing Down Payment Assistance Program smooth the path. By shrinking upfront costs, they let you focus on what matters—building equity, personalizing your space, and planting roots in the community you love.

If the promise of up to $8,000 sparks your imagination, don’t wait. Speak with an approved lender, complete the education course, and start touring homes. A year from now, you could be sipping maple-flavored coffee on your own front porch.

Check Your Eligibility Today