New Hampshire Housing Home Loans

NH Housing HomeFlex loans

• Must be combined with FHA or RD or VA and the rules for the FHA or RD or VA must be followed.
• The seller can pay all closing costs and prepaid expenses associated with a purchase but this needs to be negotiated into the contract and is limited to the lesser of actual expenses or 6% (whichever is less).
• Borrower must still have 1% of their own funds into the transaction.
• A minimum of 620 credit score is required by Bookend Lending for NH Housing loans

NH Housing Home Preferred loans

• Conventional loans and are available with just 3% down.
• A minimum of 620 credit score is required by Bookend Lending for NH Housing loans
• Available for single-family properties and NH Housing-approved condos
• Income Limits are set at 80% of AMI (Area Median Income) to get preferred pricing with a lower mortgage insurance cost than the HomeFlex. The Home Preferred income limits vary from community to community. Use this tool to search for the income limit based on property address.
• Higher rates are available for borrowers exceeding 80% of area income with total qualifying income not to exceed $137,400.
• The seller can pay closing costs and prepaid expenses associated with a purchase but this needs to be negotiated into the contract and is limited to 3% when the down payment is 5% or less. If the down payment is 10% or more then the seller can pay up to 6% of the sales price toward closing (provided the closing costs equal this much or more).
• A Mortgage Credit Certificate (MCC) are available for qualified buyers. It provides the homeowner with a federal income tax credit equal to 35% of the interest they pay on their loan each year or $2000 (whichever is less).
• Up to $35,000 in rehab funds available if combined with FHA (FHA Limited 203K)

2%, 3%, and even 4% cash assistance are available for all borrowers who fall within the income limits of NH Housing using either the flex or Home Preferred options. The cash assistance can be used for down payment and/or closing costs and is a 2nd mortgage that is forgivable after 4 years with the following conditions; 1. if you still live in the home, 2. have made your payments on time, 3.  have not refinanced, 4.  have not filed bankruptcy, 5.  and have reasonably maintained the home. There are no interest due or monthly payments on this 2nd mortgage/cash assitance.

*Cash assistance is often referred to as down payment assistance; the two can be used interchangeably.