Buying your first home in Merrimack can feel exciting and a little overwhelming. If you are wondering how much you need for a down payment or which loans you can use, you are not alone. The good news is New Hampshire has solid programs that can help you get the keys sooner and with less stress. In this guide, you will learn the main options for first-time buyers, how eligibility works, what to expect for timelines, and where to verify the latest rules. Let’s dive in.
What first-time buyer programs cover in NH
New Hampshire’s first-time buyer support comes from three places: the state’s housing finance authority, federal loan programs, and local counseling resources.
- New Hampshire Housing (NH Housing) offers fixed-rate mortgages designed for first-time buyers, down payment assistance, and homebuyer education. Program terms, income limits, and approved-lender lists change over time, so you should verify details directly with New Hampshire Housing.
- Federal loans commonly used by first-time buyers include FHA, VA for eligible service members and certain spouses, and USDA for homes in eligible rural areas. These programs can reduce down payment needs and ease credit requirements compared with many conventional loans.
- Local and nonprofit supports include HUD-approved counseling and occasional supplemental grants or classes. Availability can vary by year and town.
NH Housing basics for Merrimack buyers
What NH Housing offers
NH Housing is the state-level hub for first-time buyer support. Typical features include:
- Fixed-rate mortgages tailored for first-time buyers.
- Down payment assistance that may come as a second loan, a deferred loan, or forgivable assistance depending on the program.
- Required homebuyer education for certain products.
- In some cases, access to Mortgage Credit Certificates (MCCs), which can reduce your federal tax liability.
Terms, eligible property types, income and purchase price limits, and DPA structures are updated regularly. You must work with a lender approved by NH Housing to use these products.
How to confirm eligibility
Most first-time buyer definitions follow a simple rule: you have not had an ownership interest in your primary residence within the past three years. Income and purchase price limits depend on the county, household size, and the specific program. Before you shop, confirm the current rules with your lender and review guidance from New Hampshire Housing.
FHA, VA, and USDA at a glance
FHA: Low down payment flexibility
FHA loans are popular with first-time buyers because of lower down payment minimums and flexible credit standards. Common guidance includes 3.5 percent down if your credit score is 580 or higher. Borrowers with scores between 500 and 579 may be eligible with a larger down payment. FHA loans include upfront and annual mortgage insurance premiums. For current county loan limits, check HUD’s FHA loan limits by county.
VA: Zero down for eligible service members
If you are an eligible veteran, active duty service member, or certain surviving spouse, VA loans can offer 0 percent down options and competitive underwriting. You will need a Certificate of Eligibility and the loan includes a VA funding fee for most borrowers. Learn more on the VA home loan page.
USDA: Rural area option with income limits
USDA’s Single-Family Guaranteed Loan Program supports buyers in eligible rural areas. These loans can offer low or no down payment options, plus a guarantee fee and annual fee instead of traditional mortgage insurance. You must meet household income limits and the property must be in an eligible area. Review program details and eligibility information through USDA Rural Development.
Timelines and how the process works
You can set a realistic schedule by planning for the steps below.
- Get pre-approved with a lender who is experienced with NH Housing and your chosen federal program.
- Shop for homes in Merrimack and submit offers.
- Complete your loan application and provide documents promptly.
- Take care of program-specific tasks, such as reserving NH Housing DPA, confirming your VA COE, or checking USDA site eligibility.
- Work through underwriting, appraisal, title, and any conditions.
- Close and get your keys.
A standard mortgage from full application to closing often takes 30 to 45 days. Adding NH Housing down payment assistance, a VA appraisal, or USDA eligibility steps can add 1 to 3 weeks. Delays usually come from missing documents, appraisal issues, title problems, or slow third-party approvals. Staying proactive on paperwork and using an approved, experienced lender helps keep things on schedule.
What to prepare before you apply
Having your documents ready speeds up underwriting and reduces stress.
- Government ID and Social Security number.
- Recent pay stubs for 30 days and W-2s for the prior 2 years. If self-employed, 2 years of tax returns.
- Bank and asset statements for the last 2 months.
- A signed purchase and sale agreement once you are under contract.
- A completed gift letter if any funds are gifted, using the program’s required format.
- Homebuyer education certificate if the program requires it.
- For VA loans, your Certificate of Eligibility. For USDA, proof that the property location and your income meet the guidelines.
Costs and tradeoffs to weigh
Buying with assistance can lower your upfront cash needs, but it also introduces program costs and rules. Here is what to consider.
- Down payment: FHA minimums often start at 3.5 percent with qualifying credit. Conventional and NH Housing products vary. VA and USDA can offer 0 percent down for eligible borrowers.
- Mortgage insurance and program fees: FHA includes an upfront mortgage insurance premium and annual premium. Conventional loans require private mortgage insurance when you put less than 20 percent down, which may cancel later when you reach the equity threshold. VA has a funding fee for most borrowers, and USDA uses a guarantee fee plus an annual fee.
- DPA terms: Assistance can be a deferred or forgivable second mortgage, or a repayable second loan. Terms vary by program and affect future refinancing or selling. Ask your lender to explain the lien structure and any forgiveness timeline.
- Mortgage Credit Certificates (MCCs): Where available, MCCs can convert part of your annual mortgage interest into a federal tax credit. Qualifications apply and the credit does not reduce your monthly payment. It can reduce your federal tax bill, which may improve your annual cash flow.
Merrimack market tips
Merrimack sits in Hillsborough County and is part of the Manchester, Nashua, and Greater Nashua market area. Many buyers consider commute times to these job centers and to northern Massachusetts, which can influence your search radius and price range. Inventory and time on market change throughout the year, so you should pair program research with up-to-date local data from your agent and lender.
If you want to look near the edges of Hillsborough County, ask your lender about USDA eligibility. Some areas in New Hampshire qualify as rural under USDA guidelines, while others do not. Your lender can help you check current maps and confirm income limits through USDA Rural Development.
Your next steps
Use this quick checklist when you talk with a lender or housing counselor:
- Am I a first-time buyer under these program rules?
- Which NH Housing mortgage and DPA options fit my income, household size, and likely purchase price in Merrimack?
- Can I combine DPA with FHA, VA, or USDA, and what are the lien terms?
- What credit score and debt-to-income ratio does each option require?
- Do I need homebuyer education, and when should I complete it?
- What are estimated closing costs, lender fees, and program fees like MIP, PMI, funding, or guarantee fees?
- What is the estimated application-to-close timeline for my chosen program?
To verify program details and find counseling help, visit New Hampshire Housing, check FHA limits on HUD’s site, learn about VA loans at the VA home loan page, and explore USDA loan information through USDA Rural Development. For classes and one-on-one advice, use the HUD housing counseling resources to find a local agency.
If you want a clear path from pre-approval to keys in Merrimack, our team can help you compare options, time the steps, and shop homes that match your budget and commute. Reach out to Tim Morgan for a friendly, local strategy session.
FAQs
Do I have to be a true first-time buyer to use NH programs?
- Many products target first-time buyers defined as no primary home ownership in the past three years, but exceptions can exist based on the program and property location. Confirm with your lender and New Hampshire Housing.
What credit score do I need for FHA, VA, or USDA in Merrimack?
- FHA often allows 3.5 percent down with scores of 580 or higher, and may allow lower scores with larger down payments. VA and USDA have flexible credit approaches, but lender and program rules apply. Ask your lender for current criteria.
Can I combine NH Housing down payment assistance with FHA, VA, or USDA?
- Often yes, but it depends on the DPA’s rules and the primary loan program. Some DPAs are second liens that may be deferred or forgivable, and VA subordinate financing has specific rules. Your lender will confirm compatibility.
How long does closing take when using these programs?
- Standard loans commonly close in 30 to 45 days from full application. Adding NH Housing DPA, VA appraisals, or USDA eligibility checks can add 1 to 3 weeks depending on approvals and documentation.
Where can I find local homebuyer education or counseling?
- Start with New Hampshire Housing for program education and use HUD’s counseling resources to locate HUD-approved agencies near Merrimack.
