The Ultimate Guide to Home Financing Options That Actually Works
Buying a home is exciting—but it can also feel overwhelming. There are so many home financing options out there. How do you know which one is right for you?
Whether you're looking at South Nashua Houses for Sale or exploring Southern NH houses for sale, understanding your mortgage choices is key. Let’s break it all down in simple terms, so you can make smart, confident decisions.
Why Financing Matters
Buying a home is one of the biggest purchases you’ll ever make. Most people don’t pay cash—they use a mortgage. That’s why picking the right loan matters. It affects your monthly payment, how much you pay over time, and how fast you build equity.
Types of Home Loans
Let’s look at the most common home financing options in New Hampshire.
1. Conventional Loans
These are the most popular. They’re not backed by the government. You’ll usually need:
A good credit score (620+)
A steady income
A down payment (as low as 3%)
If you put down less than 20%, you’ll likely pay private mortgage insurance (PMI). But once you build enough equity, PMI can go away.
2. FHA Loans
Backed by the Federal Housing Administration, these are great for first-time buyers. You can:
Put down as little as 3.5%
Qualify with a lower credit score (580+)
Use gift funds for your down payment
FHA loans do require mortgage insurance, but they’re easier to qualify for.
3. VA Loans
If you’re a veteran, active-duty service member, or eligible spouse, this is a powerful option. VA loans offer:
No down payment
No PMI
Competitive interest rates
You’ll need a Certificate of Eligibility (COE) to apply.
4. USDA Loans
These are for rural and some suburban areas—including parts of Southern NH. USDA loans offer:
No down payment
Low interest rates
Income limits based on your area
They’re perfect if you’re buying in a qualifying location.
New Hampshire-Specific Programs
New Hampshire has some amazing programs to help buyers. These are offered through the New Hampshire Housing Finance Authority (NHHFA).
Home Flex Plus
This program offers:
FHA, VA, or USDA loans
Up to 4% in down payment and closing cost help
Forgivable second mortgage (if you stay in the home for 4 years)
Home Preferred Plus
This one is for buyers with lower incomes. It includes:
A conventional loan
Up to 97% financing
Lower mortgage insurance rates
Purchase Rehab Program
Buying a fixer-upper? This program combines:
A mortgage for the home
Extra funds for repairs (up to $35,000)
It’s great if you want to update a home in South Nashua or nearby.
Down Payment Help
Don’t have a big down payment? No worries. There are grants and assistance programs that can help. Some offer:
Cash for your down payment
Help with closing costs
Forgivable loans (you don’t have to pay them back if you stay in the home)
Ask your REALTOR® or lender about what’s available in your area.
Other Financing Strategies
Let’s talk about a few smart ways to make your financing work for you.
1. Buy Down Your Rate
You can pay extra at closing to lower your interest rate. This is called a rate buydown. It can save you money over time.
2. Adjustable-Rate Mortgages (ARMs)
These start with a lower rate that adjusts later. They’re good if you plan to move or refinance in a few years.
3. First-Time Buyer Perks
Some lenders offer special deals for first-time buyers. These might include:
Lower rates
No PMI
Easier approval
Tips for Choosing the Right Loan
Here’s how to pick the best home financing option for you:
Know your credit score – It affects your loan choices.
Set a budget – Know what you can afford monthly.
Compare lenders – Rates and fees can vary a lot.
Ask questions – A good lender will explain everything clearly.
Work with a REALTOR® – They’ll guide you through the process.
What About South Nashua and Southern NH?
If you’re looking at South Nashua Houses for Sale, you’ll find a mix of new builds, condos, and charming older homes. Many qualify for FHA, VA, or USDA loans.
Southern NH houses for sale often include rural areas that work well with USDA loans. Plus, prices are often more affordable than in the city.
Navigating Home Financing Options: Smart Moves for NH Buyers
Buying a home in New Hampshire doesn’t have to be confusing. With the right home financing options, you can find a loan that fits your life and your budget.
Whether you’re eyeing a cozy spot in South Nashua or a quiet retreat in Southern NH, there’s a mortgage out there for you. And with help from a trusted REALTOR®, you’ll be in your new home before you know it.
Need Help?
Let’s chat! We’re here to help you explore your options, connect with lenders, and find the perfect home. Reach out anytime. Your dream home is waiting.
If you need more information on navigationhome financing options, or are ready to sell your house give us a call at (603) 883-8840. You can also sign up for your dream home search or reach out to Our Agents for more information. We’d love to help you with your real estate needs.
