New Hampshire first-time homebuyer grants and down payment assistance (2026)

Three NH Housing mortgages that can carry the cash assistance

Scroll the table sideways to see every column.

Home First is funded with mortgage revenue bonds, so federal tax rules apply. It counts the “gross annual compliance income” of the household, and the loan may be subject to federal recapture tax when you sell ⁠⁵. A first-time buyer here means nobody on the loan was on the deed of a principal residence in the three years before closing ⁠⁵⁠⁶. Home Flex and Home Preferred use ordinary qualifying income and have no first-time rule ⁠⁷⁠⁸. Home Preferred below 80% AMI gets discounted mortgage insurance. The matrix shows up to 97% loan-to-value and 105% combined with the cash assistance ⁠²⁠⁸.

How the $15,000 Cash Assistance Mortgage is repaid

The cash assistance is not a grant, and New Hampshire does not forgive it over time. Every fact sheet describes it the same way: a second mortgage with no interest, no monthly payment and a 30-year term ⁠⁵⁠⁶⁠⁷⁠⁸. New Hampshire Housing itself is the lender on it. You repay the full amount when any of these happens ⁠¹⁠⁵:

• you pay off or refinance the first mortgage;
• you sell or transfer the home;
• you file for bankruptcy;
• the home stops being your primary residence; or
• the 30-year term ends.

You can use the money only on a purchase, for the down payment, closing costs and prepaids. Conventional borrowers may also put it toward split-premium mortgage insurance ⁠⁶⁠⁸. You do not fill out a separate application. When your lender reserves a Plus loan, the cash assistance is reserved automatically. The lender must request the funds two business days before closing ⁠⁵.

The help raises your rate. On NH Housing’s Oct. 20, 2026 rate sheet, a First Government loan with no points was 6.750%. With $5,000 it was 7.125%, with $10,000 7.375%, and with $15,000 7.625%. Flex Plus ran from 7.625% to 8.125%, and Preferred Plus under 80% AMI from 7.750% to 8.250% ⁠¹⁰. Rates change daily. The $15,000 option adds seven-eighths of a percentage point to the rate on First Government, so compare the monthly payment before taking the largest amount.

Home First limits by town, effective July 6, 2026

Home First is the only NH Housing program with a purchase price cap and a town-level income table. The table has two tiers. The higher tier covers the 15 communities HUD designates as targeted. In those towns the first-time buyer rule is also waived ⁠³⁠⁴.

Scroll the table sideways to see every column.

To look up a town, find its county on NH Housing’s Home First Program Limits sheet. If the town is not named in bold, use the “All other communities” row ⁠³. Two- to four-unit buildings must be at least five years old, except a two-unit in a targeted community ⁠³.

For Home Flex Plus and Home Preferred Plus above 80% AMI, the statewide ceiling is $184,500. For Preferred below 80% AMI, the lender checks your address in Fannie Mae’s income lookup tool ⁠¹⁠².

1stGenHomeNH: $10,000 more for first-generation buyers

1stGenHomeNH (the First-Generation Homeownership Downpayment Assistance Program) adds $10,000 on top of any NH Housing first mortgage. It is set up as the same kind of 0% second mortgage with a 30-year term, due on sale, refinance, bankruptcy or move-out ⁠⁹. You qualify if no borrower, co-borrower or non-borrowing spouse has ever owned a home, and no borrower’s parent or legal guardian has owned one during the borrower’s lifetime. A borrower who was in foster care, or who lives in the US as a refugee or asylee, also qualifies ⁠⁹. The fact sheet says it can be combined with other down payment assistance, so a first-generation buyer can pair it with the Plus cash assistance ⁠⁹.

Every borrower must finish a face-to-face course of at least 6 hours with AHEAD, HOMEteam or The Housing Partnership, and sign an eligibility affidavit at closing ⁠⁹. New Hampshire Housing calls this a pilot with limited funding, paid first-come, first-served, and it can suspend the program at any time. Ask your lender to confirm funds before you count on it ⁠¹⁠⁹.

Credit, DTI and education overlays

• Credit score: 620 minimum on all programs in the July 6, 2026 matrix ⁠².
• Debt-to-income: 50%, unless you have a 680+ score and an Approve/Eligible finding from automated underwriting ⁠⁵⁠⁷. Home First Government allows manual underwriting. Home First Conventional does not ⁠⁵⁠⁶.
• Escrow and property rules: taxes and insurance must be escrowed. Homes on a private well need a water test, unless the buyer completed NH Housing’s Water Wellness Course before signing the purchase agreement ⁠⁵.
• Education: On Home First, one borrower must take a homebuyer education course, and NH Housing’s own online course counts ⁠⁵⁠⁶. Home Flex requires education only if you take cash assistance ⁠⁷. Home Preferred requires it for first-time buyers or anyone taking cash assistance ⁠⁸. Two- to four-unit purchases also need a landlord course ⁠⁵. The seminar calendar lists classes by AHEAD in Littleton, HOMEteam in Manchester and Laconia (including a Spanish seminar), The Housing Partnership online, and NH Housing’s own evening webinar ⁠¹².

Nashua and Portsmouth programs, and the end of the state MCC

Nashua First-Time Homebuyer Assistance Program. The city’s Urban Programs Department uses federal HOME funds for a conditional grant. It generally pays up to $10,000 toward the down payment, closing costs, a rate buy-down or the price ⁠¹³. Household income must be at or below 80% of Nashua’s area median income, using HUD’s Nashua, NH HUD Metro FMR Area table. The price cannot exceed HUD’s 95% homeownership value limit for Nashua ⁠¹³. Nashua’s manual uses a five-year look-back for first-time status. It caps housing costs at 31% of income and total debt at 43%. The grant is a “silent second” that you repay if you sell or refinance within five years ⁠¹⁴. Applications are funded first-come, first-served. When money runs out, the city starts a waiting list ⁠¹⁴. A HUD-certified homebuyer class is required before closing ⁠¹³.

Portsmouth Home Town Program. Portsmouth’s Housing Endowment Fund pays for this program, run with Citizens Bank. It offers a first mortgage plus down payment and closing cost help. That help is a 0% second mortgage deferred 10 years and a 0% third loan due when you sell or transfer ⁠¹⁵. The income limit is $169,080 for a family of four, based on HUD’s draft limits effective May 2026. You must have lived in Portsmouth at least 2 years, or lived there 10 years in the past and now live within 30 miles, or be a full-time city employee ⁠¹⁵. The city does not post a maximum dollar amount, and its guidelines link was not working on Oct. 20, 2026. Call (603) 610-7281 for the current figure ⁠¹⁵.

Mortgage Credit Certificate. New Hampshire Housing’s Homebuyer Tax Credit Program took no new reservations after Dec. 13, 2024, and the agency did not renew its allocation. It still reissues existing certificates if you ask within 12 months of a refinance ⁠¹¹. We found no current City of Manchester down payment program on official sites. Manchester buyers use NH Housing, and Manchester is a Home First targeted community ⁠⁴.

Applying through an NH Housing approved lender, step by step

1. Pick the right first mortgage

   If you have owned a home in the last three years, Home First is out unless you buy in a targeted community or are a qualified veteran. Look at Home Flex Plus or Home Preferred Plus instead ⁠²⁠⁴.

2. Check your town’s limits

   Use the July 6, 2026 Home First table, or the $184,500 ceiling for the other programs ⁠²⁠³.

3. Take the required class early

   One borrower needs a certificate for Home First or any Plus loan. All borrowers need a 6-hour face-to-face course for 1stGenHomeNH ⁠⁵⁠⁹⁠¹².

4. Choose an approved lender

   Search NH Housing’s Build Your Team directory. You never apply to NH Housing directly ⁠¹.

5. Gather documents

   Expect pay stubs, W-2s and bank statements. Home First files also need the Gross Annual Compliance Income worksheet, a recapture disclosure, a borrower attestation and, if you are using the veteran exception, a veteran’s affidavit ⁠⁵.

6. Have the lender reserve the loan and assistance

   The Cash Assistance and the 1stGenHomeNH box are reserved in Lender Online along with the first mortgage. Nashua and Portsmouth applications go to the city separately, with a lender prequalification letter ⁠⁵⁠⁹⁠¹⁴.

7. Close and keep the second-mortgage papers

   You will need the payoff amount if you later sell or refinance ⁠⁵.

If one lender turns you down, another approved lender may underwrite you differently. Nashua applicants on the waiting list are contacted when more funding becomes available ⁠¹⁴. Other states are compared on the first-time homebuyer grants page, and other New Hampshire guides are on the New Hampshire page.