Home Preferred Plus First-Time Homebuyer Assistance Programs

Home Preferred Plus: New Hampshire’s Zero-Down Gateway to First-Time Homeownership

Home Preferred Plus has become the go-to mortgage option for Granite State renters who dream of collecting house keys instead of monthly rent receipts. Launched by New Hampshire Housing Finance Authority, this program combines low fixed rates, reduced mortgage insurance, and—remarkably—no required down payment for many borrowers. Below, you’ll learn exactly how the plan works, whether you qualify, and practical tactics that can put you on your own front porch sooner than you thought possible.

Picture Ben and Casey, software developers with student loans and a baby on the way. They feared that the classic white farmhouse they loved would forever sit beyond reach. Their lender introduced NH Home Preferred Plus. Six weeks later they closed with zero down, a rate below the statewide average, and a monthly payment $217 cheaper than renting. Their toddler’s first steps happened on hardwood—not apartment carpet. That transformation can be yours as well.

What Is Home Preferred Plus?

The Home Preferred Plus mortgage is a fixed-rate conventional loan offered through lenders approved by New Hampshire Housing. It’s built on Fannie Mae’s “HomeReady” platform but sweetened with:

• Interest rates that often beat standard conventional offers by 0.25–0.50%.
• Mortgage insurance priced 35%–55% lower than typical private MI, depending on credit.
• Up to 4% in optional cash assistance that can cover some—or all—of your down payment and closing fees.
• Flexibility to layer additional grants or seller credits.

Unlike USDA or VA loans, Home Preferred Plus has no geographic or military restrictions. That matters in a compact state where many buyers look within commuting distance of Manchester, Nashua, or Portsmouth.

Who Qualifies for Home Preferred Plus in New Hampshire?

Eligibility is broader than many assume. You must:

1. Be a first-time buyer—or not have owned a principal residence in the last three years.
2. Purchase a 1–4 unit primary residence in New Hampshire.
3. Stay within income limits. For 2024, most counties cap household earnings at roughly $167,000, but check the latest chart—it updates annually.
4. Bring a minimum credit score of 620; a 680+ score unlocks the absolute best price.
5. Complete an approved homebuyer education course (available online for about $75).

Note: Repeat buyers can still qualify if they purchase in a federally designated target area. Your loan officer can help you locate these pockets.

Does Home Preferred Plus Really Mean Zero Down?

Yes, for many borrowers. The base program allows a down payment as low as 3%. However, most applicants pair it with New Hampshire Housing’s optional Down Payment Assistance (DPA) second mortgage—up to 4% of the loan amount. Because the DPA is forgivable after five years of occupancy, the practical result is $0 cash required up front aside from standard earnest money, which you often recoup at closing.

Even if you choose to invest a small down payment, DPA can still wipe out closing costs—appraisal, taxes, insurance, and the like. That keeps savings in your pocket for furniture or inevitable “new house” surprises.

Step-by-Step: How to Apply for Home Preferred Plus

The process mirrors a conventional mortgage with a few program checkpoints:

1. Pre-Qualification: A participating lender reviews income, credit, debts, and estimates your price range.
2. Education Course: Finish the HUD-approved class; email your completion certificate to your loan officer.
3. Full Application & Underwriting: The lender submits your file through Fannie Mae’s automated system plus New Hampshire Housing overlays.
4. Sign Purchase Contract: Negotiate price, inspections, and seller concessions that can further reduce cash needed.
5. Final Approval: NH Housing issues a Commitment Letter; you lock your Home Preferred Plus rate.
6. Closing: Funds disburse, keys exchanged, celebratory pizza ordered. 🍕

From accepted offer to closing, expect 30–45 days. Having tax returns, pay stubs and bank statements ready will speed things up.

Home Preferred Plus vs. FHA and USDA Loans

Choosing the right product is part art, part mathematics. Below is an at-a-glance comparison—rates fluctuate, so run real quotes.

• Down Payment: FHA 3.5%; USDA 0% (rural only); Home Preferred Plus 0–3% statewide.
• Upfront Fees: FHA adds 1.75% to the loan; USDA 1%; HP+ none.
• Monthly Mortgage Insurance: FHA = 0.55% on most loans; USDA 0.35%; HP+ as low as 0.15%.
• Property Limits: FHA county-specific; USDA rural; HP+ follows conforming loan limits ($766,550 for 2024).
• Asset Flexibility: Gift funds welcome on all three, but HP+ shines because the DPA acts like a built-in gift.

If you value urban proximity or want to avoid permanent mortgage insurance, NH Home Preferred Plus frequently wins the spreadsheet battle.

Pocket-Sized Stats That Matter

The New Hampshire Association of Realtors reports a $435,000 median single-family sale price as of late 2023—up 6% year-over-year. Simultaneously, statewide rents jumped 11%, averaging $1,978 for a two-bedroom unit. When mortgage rates sit near 6%, a Home Preferred Plus home loan on a $375,000 house can cost $110 less per month than renting a similar apartment, based on sample lender worksheets reviewed in November 2023. Data points shift, yet the rent-versus-own gap persists.

Why toss hard-earned dollars into a landlord’s pocket when the same payment could nurture your own net worth?

7 Insider Tips to Maximize Your Savings

1. Shop lenders, not just rates. Some participating banks waive origination fees for HP+ loans.
2. Ask about lender-paid MI. With solid credit, rolling MI into the rate can reduce the monthly outlay.
3. Stack grants. Municipal initiatives in Nashua and Concord offer $5,000 boosts—perfectly compatible.
4. Negotiate seller credits for escrow items. Last year, 38% of NH sellers provided some concession, according to MLS data.
5. Target shoulder seasons. From November to February, listing prices historically dip by 2–3%.
6. Leverage energy-efficiency. Adding $5,000 for insulation under HP+ often raises payment by $32 but can shave $70 off utility bills.
7. File for the NH property tax relief credit. If your income is below $50,000, you may recoup up to $900 annually.

Frequently Asked Questions

What credit score gets the best rate on Home Preferred Plus?
A 720+ FICO typically unlocks the lowest pricing tier, but solid deals start at 680.

Can I use Home Preferred Plus for a duplex?
Yes, up to four units. You must occupy one unit as your primary residence.

Is private mortgage insurance cancelable?
Once your equity hits 20%, you can apply to remove MI—unlike FHA where premiums often stick for the life of the loan.

Does the program allow manufactured homes?
Factory-built properties titled as real estate are eligible; single-wide units are not.

What happens if I move before five years?
A prorated portion of the DPA second mortgage becomes repayable, so plan accordingly.

Ready to Unlock Your Own Front Door?

Every month you wait, equity growth and favorable rates march on without you. Talk with a qualified Home Preferred Plus lender today, take the 90-minute education course tomorrow, and be touring homes by the weekend. Your story can start with the same four powerful words Ben and Casey used: “We’re under contract—finally!”