Can You Buy a Home in NH With Little or No Down Payment?

You’ve always dreamed of owning a home. Maybe it’s a small place with a yard for a dog, a quieter neighborhood to raise a family, or a condo you can call your own.

But when you start thinking seriously about buying, that’s when the same question pops up:

“How could I ever afford the downpayment?”

For many New Hampshire first-time homebuyers, coming up with the upfront cost of buying a home feels impossible. But what if we told you that owning your own home is more affordable than you think?

There are many mortgage options available that allow qualified buyers to purchase a home with a low downpayment, and in some cases, no downpayment at all. Combined with assistance programs from New Hampshire Housing, homeownership may be more realistic than you think.

Table of Contents

• Do I really need 20% down?

• Low and no downpayment loan options

• Don’t forget about closing costs

• How New Hampshire Housing can help 

Do I really need 20% down?

A prevalent myth about homebuying is that a 20% downpayment is a necessity when purchasing a home.

Although increasing your downpayment can reduce your monthly mortgage payment, many buyers are eligible for loans that require significantly smaller downpayments.

Depending on the program, you may be able to buy a home with:

• 3% down
• 3.5% down
• Or even 0% down

The right option depends on your income, credit, military status, and where you’re buying.

Low and no downpayment loan options

FHA Loans

One of the most popular options for first-time buyers is FHA loans because they offer flexible requirements and lower upfront costs.

Benefits may include:

• Downpayments as low as 3.5%
• More flexible credit guidelines
• Competitive fixed interest rates

These loans can be helpful for buyers who are still building savings or improving their credit.

VA Loans

For eligible veterans, active-duty service members, and some surviving spouses, VA loans are available.

Key benefits include:

• No downpayment required
• No private mortgage insurance (PMI)
• Competitive rates

For eligible military families, VA loans can make buying a home much more affordable upfront.

USDA Loans

USDA loans help buyers purchase homes in eligible rural and suburban areas, including many communities throughout New Hampshire.

Benefits may include:

• No downpayment
• Lower mortgage insurance costs
• Fixed interest rates

Income and property eligibility requirements apply, so it’s important to speak with a participating lender.

Conventional loans through Fannie Mae

Some conventional loan programs backed by Fannie Mae allow qualified buyers to put down as little as 3%.

These programs may be a good fit for buyers with steady income and stronger credit profiles.

Don’t forget about closing costs

The downpayment is only one piece of the puzzle.

Buyers should also plan for closing costs, which can include things like:

• Appraisal fees
• Attorney fees
• Title and insurance costs
• Taxes and prepaid expenses

Some assistance programs, seller concessions, or lender credits may help reduce these costs.

How New Hampshire Housing can help

That’s where New Hampshire Housing mortgage programs may help bridge the gap.

Qualified buyers may have access to:

• Up to $15,000 in downpayment and closing cost assistance
• 30-year fixed-rate mortgages
• Low downpayment options
• Reduced mortgage insurance options

These programs are designed to help make homeownership more affordable for New Hampshire residents.

Homeownership may be closer than you think

If you’ve been putting off buying a home because of the downpayment, it may be worth exploring your options.

With low downpayment loans and programs designed to help New Hampshire buyers, homeownership may be more achievable than you expected.

SHARE     

Sign up for New Hampshire housing’s email list today for the latest events, news, and offers.