Saving for a home in Salem can feel out of reach, especially with tight inventory and steady demand across Rockingham County. The good news is you do not have to do it alone. New Hampshire Housing offers loans and cash assistance that can help you get the keys sooner. This quick guide breaks down the programs that matter most in Salem and shows you how to take your next step with confidence. Let’s dive in.
NH Housing programs at a glance
New Hampshire Housing partners with approved lenders to offer three core mortgage paths. Many come with optional cash assistance you can use for down payment or closing costs.
- Home Preferred: a conventional 30-year fixed loan with options for lower mortgage insurance and up to 97% LTV in some cases. A “Preferred Plus” option may include cash assistance. See the full lineup on the NH Housing mortgage programs page.
- Home First: a bond-funded, rate-advantaged option often designed for first-time buyers and certain veterans, plus “Plus” cash assistance options. Check key features in the Program Comparison Matrix.
- Home Flex: FHA, VA, or USDA financing through NH Housing, with the ability to add purchase-rehab funds and “Plus” cash assistance where eligible. Review product details and rehab info in the NH Housing fact sheets.
Cash assistance: $5k, $10k, or $15k
NH Housing now offers fixed cash assistance tiers of $5,000, $10,000, or $15,000 for eligible buyers using its mortgage products. This update took effect Aug 1, 2024, and is described in the NH Housing announcement.
- Assistance is typically a 0% interest subordinate loan with no monthly payment and a stated term. Repayment is due if you sell, refinance, stop living in the home as your primary residence, declare bankruptcy, or at the end of the term. Confirm the current repayment or forgiveness language with your approved lender, since older materials used different wording. See the latest guidance in the NH Housing fact sheets.
Who qualifies
Eligibility depends on the specific program, your income, your credit, and the property’s price.
- Minimum credit scores in NH Housing marketing commonly start at 620.
- Income and purchase-price limits vary by town and program. Salem buyers should confirm the exact limits that apply. Use the Program Comparison Matrix and then confirm with an approved lender.
- Homebuyer education is required for first-time buyers and for buyers using cash assistance. You can start with NH Housing’s Steps to Homeownership.
Why this matters in Salem
Salem sits in Rockingham County, where demand is strong and prices often run above statewide medians. That makes down payment help especially useful. Local snapshots frequently note tight inventory and competitive offers, which can affect how you structure your bid. For broader market context, see recent coverage in the New Hampshire Business Review.
How to use NH Housing in Salem
Follow these steps to keep things simple and local.
Take homebuyer education. Complete a seminar or approved online course. This is typically required for first-time buyers and anyone using assistance. Start with Steps to Homeownership.
Review your program fit. Compare Home Preferred, Home First, and Home Flex, including any “Plus” cash assistance options. The NH Housing mortgage programs page and comparison matrix make it easy to scan your choices.
Get pre-approved with an approved lender. You must use a participating NH Housing lender. Your lender will verify credit, income, the Salem purchase-price cap, and whether you qualify for $5k, $10k, or $15k in assistance.
Work with a local agent who knows Salem. You want guidance on neighborhoods, property condition, and strategy so your offer is strong while still meeting program rules.
Lock in your NH Housing loan at contract. Your lender finalizes the product and assistance amount, orders any required education certificates, and prepares the second-mortgage documents for closing.
Salem-specific checks before you shop
Make these quick checks early so you focus on the right homes and the right program.
- Confirm income and purchase-price limits for Salem. Limits vary by town and product. Use NH Housing’s Program Comparison Matrix and verify with your lender.
- Check FHA, VA, or USDA loan limits if you use Home Flex. Rockingham County FHA limits can be higher than other NH counties. Review current guidance on FHA loan limits in New Hampshire.
- Know property type rules. Eligible types include 1 to 4 unit owner-occupied homes, approved condos, and certain manufactured homes. See the matrix and fact sheets for specifics.
- Verify DPA repayment terms. Current fact sheets describe a 0% second mortgage with repayment triggers. Because older materials differ, confirm the exact terms for your loan with your lender.
Extra tools that can help
- Purchase-rehab with Home Flex. Roll eligible repairs into your mortgage and pair it with cash assistance when allowed. See details in the NH Housing fact sheets.
- Mortgage Credit Certificate. An MCC may reduce federal income tax liability and can improve affordability. Learn more from NH Housing’s overview of its new programs and tax credit option here.
Ready to explore homes that work with NH Housing programs in Salem? Get local guidance, smart offer strategy, and a clear plan from Shannon Dipietro. We will help you align the right property with the right loan and assistance so you can move with confidence.
FAQs
Who is eligible for NH Housing down payment help?
- Eligibility varies by program and by town. NH Housing typically shows a 620 minimum credit score in marketing materials, requires education for first-time buyers and anyone using assistance, and sets income and purchase-price limits you must meet in Salem. See the NH Housing fact sheets and confirm with an approved lender.
How much assistance can I receive in Salem?
- Current NH Housing materials list fixed tiers of $5,000, $10,000, or $15,000, subject to program rules and income and purchase-price limits for your town. See the official announcement.
Will I have to repay the assistance?
- NH Housing describes assistance as a 0% second mortgage with no monthly payment, due upon sale, refinance, no longer living in the home as your primary residence, bankruptcy, or at the end of the term. Because older materials differ, confirm your exact repayment or forgiveness terms with your lender and review the latest fact sheets.
Can I use assistance with FHA, VA, or USDA loans?
- Yes. Home Flex is designed for FHA, VA, or USDA loans and can pair with cash assistance when eligible, and Home First and Home Preferred also offer “Plus” options. Compare products in the Program Comparison Matrix.
How do I start the process in Salem?
- Take an approved education course, review programs, then get pre-approved with an NH Housing approved lender and work with a local agent who knows Salem. Begin with NH Housing’s Steps to Homeownership.
