It’s no secret that first-time home buyers are facing a limited number of homes to choose from and higher home prices. There are a few glimmers of hope for those who are trying to find and qualify for a mortgage.
Get Cash Assistance
First-time homebuyers need better mortgage programs to help make a home purchase affordable. The New Hampshire Housing Finance Authority has down payment assistance that range from $5,000, $10,000, $15,000, $20,000, and even $25,000 as of January 2025. Even with the Down Payment or Cash Assistance, expect to contribute from your own funds a minimum of 1% of the purchase price. There are income limits, purchase limits, and other requirements for these and all other NHHFA programs. Download the PDF with limits here.
Home First Government: Combines New Hampshire Housing with FHA, VA, or Rural Development. These programs are available with Down Payment Assistance or get a lower interest rate without the assistance!
Home Conventional: Combines New Hampshire Housing with Conventional Financing for more property choices. Like the Home First Government program, these programs are available with Down Payment Assistance or get a lower interest rate without the assistance!
Home Flex and the Fannie Preferred programs: Combines New Hampshire Housing with FHA, VA, RD, and Conventional with less restrictive income limits. These programs have Down Payment Assistance like the Home First and Home Conventional Programs.
A lower interest rate and a lower monthly payment with a higher credit scores and more
So much of getting the lowest rate and payment for your situation has to do with positioning yourself for the best possible program. There are several criteria that determine your lowest cost mortgage program, interest rate, and payment.
- How much cash you have to put into the transaction
- The type of property; single family, multi-family, condo
- The term or how long of a mortgage you choose
- Your income-to-debt ratio
- Your credit score
Most people get a 30-year fixed rate mortgage. Generally, you’re going to choose a property and price range based upon your income and savings. That leaves us with your credit score. If your credit score is in the 600s, you can still get a good mortgage program with a government backed or guaranteed program like FHA or VA. If you have a higher credit score, you will have more options for lower rates and discounted mortgage insurance.
Bottom Line: Because interest rates and mortgage insurance costs are tiered based upon credit risk, anything you or we can do to improve your credit score is going to make you new home cost that much less.
If you’d like details on any of these programs or strategies for securing an affordable mortgage, ask here or call us at 603-471-9300.