First-Time Buyer Programs In NH Explained

Buying your first home in Bedford can feel exciting and overwhelming at the same time. You might be hearing about NH Housing, FHA, VA, USDA, and conventional loans and wondering which one actually fits your budget and timeline. You want clear answers that help you get from pre-approval to keys in hand without surprises. In this guide, you’ll learn how first-time buyer programs in New Hampshire work, what to expect in Bedford and Hillsborough County, and the exact steps to move forward with confidence. Let’s dive in.

First-time buyer programs in NH

New Hampshire offers a strong mix of state and federal options that can reduce your upfront costs and help you qualify.

New Hampshire Housing overview

New Hampshire Housing partners with participating lenders to offer fixed-rate mortgages and down payment or closing cost help for first-time and income-qualified buyers. Program features and limits update often, so check current details directly on the New Hampshire Housing program site. Many buyers layer NH Housing assistance with a primary mortgage to lower cash needed at closing.

FHA loans

FHA loans are popular with first-time buyers who have limited down payment funds or mid-range credit. According to HUD’s FHA program, the minimum down payment is often 3.5 percent for credit scores of 580 and above. FHA requires mortgage insurance, which includes an upfront and annual premium.

VA loans

If you are a qualifying veteran, service member, or eligible surviving spouse, the VA home loan program offers zero down financing and no mortgage insurance. A funding fee may apply unless you are exempt. You still need to meet lender credit and underwriting standards.

USDA loans

USDA can be a strong option for zero down financing in eligible rural areas. Eligibility depends on the property location and household income. Start with the overview of USDA Single Family Housing programs and confirm property eligibility by address. Many Bedford properties may not meet USDA’s rural definition due to proximity to Manchester, so verify early.

Conventional low-down-payment options

Conventional programs like Fannie Mae and Freddie Mac offer 3 percent down options for eligible first-time buyers. Private mortgage insurance applies and can be removed later when your loan-to-value meets requirements. Some programs include homebuyer education.

Who qualifies: your eligibility checklist

Confirm these items with your lender and NH Housing early, since rules and limits change.

• First-time buyer status. Many programs define this as not owning a principal residence in the past three years. Some exceptions exist, so confirm the current definition on New Hampshire Housing.
• Income limits. NH Housing and USDA set income caps by county and household size. Check Hillsborough County limits on official program pages.
• Purchase price or loan limits. FHA, conventional, and NH Housing have caps that update annually or periodically.
• Credit score and DTI. FHA often works with scores from about 580 and up for 3.5 percent down. Conventional programs have their own standards. Lenders also review your debt-to-income ratio.
• Occupancy and property type. Most programs require the home to be your primary residence. Condos and multi-units have extra rules, and FHA has condo approval requirements.
• Property condition. FHA, VA, USDA, and NH Housing have minimum property standards that may require repairs before closing.

How programs work together in NH

Many first-time buyers pair a primary mortgage with New Hampshire Housing down payment assistance. Here is how the stack often looks.

• Primary mortgage plus DPA second. You take a fixed-rate primary mortgage, then add NH Housing assistance as a second mortgage to help with down payment and closing costs. Terms can be deferred, forgivable over time, or repayable.
• FHA plus DPA. FHA’s low down payment pairs well with DPA when cash is tight. Mortgage insurance still applies.
• Conventional 97 plus DPA. You may reduce out-of-pocket funds while keeping a conventional structure. Private mortgage insurance applies until you reach the required loan-to-value.
• VA and USDA. These are already zero down in many cases, so DPA is less common but can sometimes help with closing costs if allowed. Check program rules with your lender.

Tip: NH Housing requires a participating lender. Choose one experienced with NH Housing paperwork to keep your timeline on track.

Timeline for Bedford buyers

Exact timing varies by market conditions and your file, but this is a common path in Hillsborough County.

1. Preparation, 1 to 2 weeks. Gather documents, check credit, and complete any required homebuyer education early if using NH Housing assistance. The CFPB’s mortgage basics are a helpful primer.
2. Pre-approval, about 1 to 7 days. Your lender reviews income, assets, credit, and issues a program-specific pre-approval letter.
3. House-hunting and offers, variable. Bedford can move quickly, so stay ready to tour and submit offers fast.
4. Offer accepted, then applications, 1 to 3 days. You lock in with your lender and submit NH Housing assistance paperwork if used.
5. Underwriting and appraisal, about 2 to 3 weeks. Lender reviews your file and orders the appraisal. NH Housing DPA can add administrative steps.
6. Clear-to-close. Final conditions get cleared.
7. Closing, often 30 to 60 days from contract. If a second mortgage is involved, allow an extra 1 to 2 weeks for coordination.

Local examples that make it real

Use these scenarios to think through your options. Always confirm current rules and limits with your lender and NH Housing.

• Conventional plus DPA. You have a 720 credit score and like a 3 percent down conventional loan. NH Housing DPA covers part of your down payment and some closing costs. PMI applies until you reach the required equity level.
• FHA plus DPA. Your score is near 600 and cash is tight. FHA at 3.5 percent down plus NH Housing deferred assistance bridges the gap. FHA mortgage insurance applies.
• VA zero down. You are a qualified veteran with full entitlement. A VA loan covers 100 percent financing with no mortgage insurance. A funding fee may apply unless exempt.
• USDA reality check. You want 0 percent down but are focused on Bedford. Check the USDA eligibility tool since many Bedford addresses do not meet the rural requirement. If ineligible, compare FHA or conventional plus NH Housing DPA.

Bedford buyer tips and watchouts

• Use a lender who knows NH Housing. Inexperienced lenders can cause delays or missed opportunities.
• Do not assume USDA works. Bedford’s location near Manchester often limits USDA-eligible addresses.
• Plan for mortgage insurance. FHA has upfront and annual premiums. Conventional PMI adds to your payment until you reach the required equity.
• Verify condo or HOA eligibility early. FHA condo approvals and HOA rules can affect timing and financing.
• Budget time for paperwork. A DPA second mortgage can add coordination time with the closing agent.

Action steps: your Bedford checklist

• Gather pay stubs, W-2s, bank statements, photo ID, and if self-employed, recent tax returns.
• Contact a participating lender with New Hampshire Housing experience for a program-specific pre-approval.
• If you hope for USDA, check property eligibility by address on the USDA site and confirm your household income fits.
• Verify current NH Housing income and purchase price limits for Hillsborough County on nhhousing.org.
• Complete any required homebuyer education early if using NH Housing assistance.
• Once under contract, send the signed purchase and sales agreement to your lender and confirm the closing timeline with any DPA steps included.
• Get a full written estimate of monthly costs, including principal, interest, taxes, insurance, mortgage insurance or VA funding fee, and any second-mortgage payment.

How your agent helps

• Connect you to participating lenders who regularly work with NH Housing and know the paperwork.
• Flag properties that fit program rules, including condo approvals and property condition needs.
• Coordinate timelines between lender, NH Housing, and the closing agent to keep the file moving.
• Advise on negotiation and closing dates that fit your program steps, especially if a DPA second is involved.
• Keep documents organized so your loan and assistance approvals do not stall.

Ready to start your Bedford home search with a clear plan? Reach out to Sandra LoPilato for local guidance, lender introductions, and step-by-step support from pre-approval to closing.

FAQs

What is New Hampshire Housing and how does it help first-time buyers?

• New Hampshire Housing partners with participating lenders to offer fixed-rate mortgages and down payment or closing cost assistance for eligible first-time buyers; program details and limits are on nhhousing.org.

Are FHA, VA, USDA, and conventional loans all available in Bedford, NH?

• Yes, these loan types are available through lenders, but USDA requires the property to be in an eligible rural area, so many Bedford addresses may not qualify; verify early on the USDA Single Family Housing page.

Do I need to be a first-time buyer to use NH Housing programs?

• Many NH Housing options target first-time buyers, often defined as no homeownership in the last three years, though some exceptions can apply; confirm current rules on New Hampshire Housing.

Can I use gift funds for my down payment in NH?

• Gift funds are commonly allowed under FHA, VA, conventional, and many state programs, but you will need a formal gift letter and documentation; ask your lender for exact rules.

How long does closing take with down payment assistance in Bedford?

• Many closings take 30 to 60 days from contract; if you use NH Housing assistance, allow for possible extra coordination of about 1 to 2 weeks for the second-mortgage paperwork.