Buying your first home in Goffstown can feel exciting and overwhelming at the same time. You want clear steps, realistic options, and a path that fits your budget. In this guide, you will learn how New Hampshire programs and common federal loans work, what to expect for eligibility in Hillsborough County, and how to compare choices with a local lender. Let’s dive in.
Program options at a glance
New Hampshire Housing programs
New Hampshire’s state housing finance authority offers mortgage options that can be paired with down payment assistance for income-qualified buyers. You typically work with a participating lender and complete approved homebuyer education before closing. Programs often have county-based income and purchase price limits, and many focus on buyers who have not owned a home in the last three years, with some exceptions such as veterans.
Pros include help with up-front cash and access to structured counseling. Cons include extra paperwork, eligibility limits, and rules that can affect property types and timelines. Your lender can confirm which products they originate and how any assistance is structured, such as forgivable, deferred, or repayable second mortgages.
FHA loans
FHA loans are government-insured and popular with first-time buyers because they allow smaller down payments and flexible underwriting. The typical minimum down payment is 3.5 percent if your credit score is around 580 or higher, although lenders may set higher minimums. FHA loans require an up-front mortgage insurance premium and annual mortgage insurance, and properties must meet FHA appraisal standards.
Pros include more flexible credit and the ability to use gift funds. Cons include ongoing mortgage insurance in many cases and property condition requirements that can be stricter than other loans.
VA loans
VA loans serve eligible veterans, active-duty service members, and some surviving spouses. The standout feature is often no down payment and no monthly mortgage insurance. A funding fee usually applies, though it can be waived for some disabled veterans. You will need a Certificate of Eligibility and a VA appraisal.
Pros include zero down and competitive rates for many borrowers. Cons include service-based eligibility, property condition standards, and specific underwriting rules related to residual income.
Conventional 3 percent down
Fannie Mae HomeReady and Freddie Mac Home Possible allow 3 percent down for qualifying buyers. Private mortgage insurance is required until you reach sufficient equity, but it can be removed or reduced over time. These products may have income limits that vary by area.
Pros include competitive rates and the option to remove PMI as you build equity. Cons include stricter credit standards than FHA and the added cost of PMI in the early years.
USDA loans
USDA loans can offer no down payment for eligible borrowers purchasing in designated rural areas. Eligibility has two parts: your income must be within USDA limits and the property must be in an eligible location based on the USDA map. In Hillsborough County, some addresses may qualify while others may not, so each property must be checked.
Pros include zero down for eligible properties and buyers. Cons include location restrictions, income caps, and added guarantee and annual fees.
Eligibility basics in Hillsborough
Goffstown is in Hillsborough County, which matters because income and purchase price limits are often set by county. State programs, and some federal products, update these limits regularly. Always confirm the latest tables with a participating lender or the issuing agency.
Most state programs define a first-time buyer as someone who has not owned a home in the past three years. There are often exceptions for veterans and other special cases, so it pays to ask. FHA and conventional low-down options do not require you to be a first-time buyer.
Credit score targets vary by program and lender. Many buyers qualify for FHA at about 580 for 3.5 percent down, while conventional 3 percent down options generally favor higher scores. The VA does not set a universal minimum, but lenders apply their own standards. Every program looks at debt-to-income ratios, and lenders may have tighter rules than the program allows.
Property rules matter, too. Most programs require the home to be your primary residence. Condos and manufactured homes can have added requirements. FHA and VA appraisals check condition items that could affect your timeline and costs. USDA requires property-level eligibility based on the map.
Many down payment assistance options require you to complete a homebuyer education course. If you plan to use DPA, tackle the course early to keep your loan timeline on track.
Pre-approval steps
Getting pre-approved early helps you shop confidently and choose the right program for your situation. Here is a simple plan.
Choose experienced lenders
Start with local lenders that participate in New Hampshire Housing programs and also offer FHA, VA, USDA, and conventional low-down options. Ask if they can pair state down payment assistance with your main loan. It is smart to speak with at least two lenders so you can compare rates, fees, and program fit.
Gather your documents
Have your paperwork ready so pre-approval moves quickly:
- Government ID and Social Security numbers for all borrowers
- Pay stubs for the last 30 days and W-2s for the past two years
- Federal tax returns for two years if self-employed or with variable income
- Bank statements for the last two to three months for all accounts
- Proof of other income you want counted, such as child support or retirement
- Gift letters if part of your down payment is a gift
- DD214 and related service records if you plan to use a VA loan
- Bankruptcy or discharge papers if applicable
Understand the timeline
Your lender will review your goals, suggest loan options, and take a full application. They will pull credit and issue a pre-approval letter that outlines your estimated price range and terms. If you plan to use state DPA, your lender may reserve funds or complete extra steps. Many buyers can finish pre-approval in about one to seven days, then expect 30 to 60 days from contract to closing depending on the property and the program.
Strengthen your position
- Pay down high-interest balances to improve your debt-to-income ratio
- Avoid opening new credit or making large purchases during underwriting
- Keep records of large deposits so funds can be sourced
- Complete required homebuyer education early if using DPA
Compare programs wisely
It is not just about rate. Look at your total cash needed, monthly cost, and the long-term picture. Ask your lender for a side-by-side estimate for your top two or three options.
- Up-front cash: Down payment, closing costs, and whether seller concessions or lender credits can help
- DPA terms: Whether assistance is forgivable, deferred, or repayable and how it affects sale or refinance
- Monthly payment: Principal and interest, mortgage insurance type and cost, property taxes, homeowner’s insurance, and any HOA fees
- Rate and APR: How program choice or DPA packaging affects both
- Total cost over time: How long you expect to stay, whether an ARM or fixed rate fits, and how quickly you can remove PMI if you choose conventional
- Approval likelihood: Which program best fits your credit, DTI, and property type, and which has the fewest property-condition hurdles
- Requirements: Education certificates, occupancy rules, income and price caps, and timing to secure any assistance
Smart questions for your lender
- Do you participate in New Hampshire Housing programs, and which ones?
- Which loan type fits my profile best and why?
- What credit score and DTI do you require for each option?
- What would I pay for mortgage insurance, funding fees, or program fees?
- How much down payment assistance can I access, and is it forgivable or repayable?
- Do you have lender overlays beyond published program rules?
- Can you show a side-by-side monthly and cash-to-close estimate for my top choices?
- For VA: Can you help obtain my Certificate of Eligibility and explain funding-fee scenarios?
- For USDA: Is the specific Goffstown property I am considering on the eligible map?
Local Goffstown notes
Do not assume all of Goffstown is USDA-eligible. Eligibility is property-specific and based on the USDA map, and many suburban pockets may not qualify. Ask your lender to check any address you like.
If you are shopping for a condo, some loans require that the condo project be approved and that the association’s budget and reserves meet program standards. Manufactured homes have separate rules depending on the loan type and how the home is titled and installed. Talk to your lender early if your search includes condos or manufactured homes so you understand what documentation is needed.
Gift funds are widely allowed with a proper letter, but each program and lender may have different rules about who can give the gift and what proof is required. Plan ahead if family will assist with your down payment or closing costs.
Mortgage insurance works differently by program and can affect both your monthly payment and your time horizon. FHA insurance may last for the life of the loan in many cases. Conventional PMI can often be removed once you reach about 20 percent equity or refinanced away. VA loans have no monthly mortgage insurance but include a one-time funding fee that can be financed into the loan.
Your plans matter as much as today’s rate. If you expect to stay in the home for many years, a zero-down program or assistance that increases your rate slightly could still be a win. If you think you will build equity quickly, a conventional 3 percent down loan with cancellable PMI might be more cost-effective over time.
Next steps with our team
You do not have to navigate this alone. Our team knows the ins and outs of Goffstown’s neighborhoods and the programs local buyers use most. We will help you focus your search, coordinate with your lender, and plan a strong offer that fits your budget and timeline.
If you are ready to take the first step, reach out to Granite State Realty Group for a friendly, no-pressure consultation. We will walk you through loan options with your lender, map out your path to pre-approval, and help you shop with confidence.
FAQs
What first-time buyer programs are common in Goffstown?
- New Hampshire Housing down payment assistance, FHA, VA for eligible veterans, conventional 3 percent down options, and USDA for properties that meet location and income rules.
Do I have to be a first-time buyer for NH programs?
- Many state programs target buyers who have not owned a home in the past three years, though exceptions exist such as for veterans; confirm current rules with a participating lender.
What credit score do I need to buy in Hillsborough County?
- FHA often allows 3.5 percent down at about a 580 score while conventional 3 percent down usually favors higher scores, and lenders may set stricter requirements.
Is all of Goffstown USDA-eligible for zero down?
- No, USDA eligibility is property-specific; your lender must check each address on the USDA map to confirm if it qualifies.
How does mortgage insurance differ across loans?
- FHA has up-front and annual mortgage insurance, conventional loans use PMI that can often be removed with equity, and VA has no monthly mortgage insurance but charges a funding fee.
What documents should I prepare for pre-approval?
- Have ID, Social Security numbers, recent pay stubs, two years of W-2s and tax returns as needed, recent bank statements, gift letters if applicable, and DD214 for VA eligibility.
Can I use gift money for my down payment?
- Most programs allow gift funds with a proper letter and sourcing, but rules vary by loan type and lender; ask how gifts are documented early in the process.
How do I compare FHA, VA, USDA, and conventional options?
- Ask your lender for a side-by-side estimate that shows cash to close, monthly payment including insurance, mortgage insurance or funding fees, and total cost over time.
