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.
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:
The right option depends on your income, credit, military status, and where you’re buying.
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:
These loans can be helpful for buyers who are still building savings or improving their credit.
For eligible veterans, active-duty service members, and some surviving spouses, VA loans are available.
Key benefits include:
For eligible military families, VA loans can make buying a home much more affordable upfront.
USDA loans help buyers purchase homes in eligible rural and suburban areas, including many communities throughout New Hampshire.
Benefits may include:
Income and property eligibility requirements apply, so it’s important to speak with a participating lender.
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.
The downpayment is only one piece of the puzzle.
Buyers should also plan for closing costs, which can include things like:
Some assistance programs, seller concessions, or lender credits may help reduce these costs.
That’s where New Hampshire Housing mortgage programs may help bridge the gap.
Qualified buyers may have access to:
These programs are designed to help make homeownership more affordable for New Hampshire residents.
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.