No income tax and a classic New England lifestyle make New Hampshire a great choice for homebuyers. Additionally, with 15.8% of homes seeing price drops and 6% more homes for sale in New Hampshire, it’s the best time to buy a house in the Granite State.
With Houzeo, New Hampshire’s best home-buying website, managing your home search is simple. You can look through the latest listings in the Granite State, save your favorites, schedule showings, and submit offers, all at your fingertips.
👉 Download the Houzeo mobile app to simplify your New Hampshire home search.
At a Glance:
- Get a mortgage pre-approval and set your budget to make competitive offers in New Hampshire’s hot housing market.
- Assess long-term livability, schools, and amenities based on past market trends to pick the right neighborhood for you.
- Consider seasonal risks like floods, windstorms, and hurricanes.
- Conduct a home inspection to look for termite damage, bug infestation, storm-related issues, and other possible defects.
- Account for additional expenses like HOA dues, hurricane insurance, property taxes in New Hampshire, and closing costs in New Hampshire.
7 Steps for Buying a Home in New Hampshire 🍂
Step 1: Decide Your Home-Buying Purpose
Whether you’re looking for a getaway or seeking an investment, knowing why you’re buying real estate in New Hampshire is essential. It sets your expectations and helps you make smarter choices. Here’s what you should keep in mind:
- Primary Residence vs. Investment: If you want to buy a home, choose places that fit your lifestyle, whether it’s a city like Manchester or a suburb like Portsmouth. For investment, consider homes for sale in Nashua, where a robust job market drives demand.
- Short-Term or Long-Term: If you plan to live in the house for only a few years, focus on neighborhoods with strong resale value and upward market trends. You can check out homes for sale in Manchester or Dover, where the housing market continues to grow.
- Space Requirements: If you’re looking for larger lots or big backyards, consider suburban areas like Bedford. But if you prefer something easier to manage, condos in places like downtown Manchester can be a smart option.
Calculate the cost of living in New Hampshire to get a detailed breakdown of expenses like housing, utilities, transportation, and more. 🏡
Step 2: Explore Financing Options
Before making a purchase, it’s important to understand the financing options available to you to make an informed decision. Here’s what you need to do:
1. Prepare Financially
- Check Your Credit Score: Lenders will check your credit score to determine if you’re eligible for a loan. Aim for a score of 500+ for an FHA loan and 620+ for a conventional loan.
- Calculate Your Debt-to-Income (DTI) Ratio: Lenders often use your DTI ratio to assess how much debt you can afford. Keep your DTI below 36%, especially if you want to buy a home in an expensive region like New Castle, Rye, and North Hampton.
- Set Your Budget: Ensure your budget includes New Hampshire property taxes, homeowners’ insurance, and potential flood insurance, particularly in New Hampshire’s coastal areas like Dover, Portsmouth, and Rochester.
👉 Use a New Hampshire mortgage calculator to estimate how much property you can afford in the Granite State.
2. Explore Loans and Assistance Programs
Down payments in New Hampshire range between 10% and 20%, but often vary based on the financing option you choose. You can also look for suitable Down Payment Assistance Programs (DPAs) to help you cover part or all of your down payment.
| Program | Description |
| FHA Loans | Require just 3.5% down and are ideal if you’re a first time home buyer in New Hampshire. |
| VA & USDA Loans | Offer 0% down with lower interest rates. Perfect for veterans or those purchasing homes in rural areas. |
| NH Housing Cash Assistance | The program offers up to $15,000 in down payment and closing cost assistance. This assistance comes as a second mortgage with 0% interest, no monthly payments, and a 30-year term. |
| Home Flex Plus | The program provides up to 3% of the loan amount as cash assistance to cover upfront costs. To qualify, buyers need a 620+ credit score, homebuyer education, income within limits, and must occupy the home. |
| The NH Homeowner Assistance Fund | The program provides up to $40,000 for mortgage, utility, or tax relief for primary residences to homeowners with COVID-19–related income loss. To qualify, your earnings should be less than 125% of the Area Median Income. |
Step 3: Get Pre-Approved for a Mortgage
The New Hampshire housing market is competitive, so get a mortgage pre-approval to show sellers you’re a serious buyer. In fact, 86% of sellers prefer buyers who are pre-approved. It also helps you negotiate better and reduces delays in the transaction.
Shop around to find the best New Hampshire mortgage lenders—compare their programs, rates, and terms. Once you’ve narrowed down your options, get pre-approved by submitting documents like proof of income, credit history, bank statements, and your ID.
Step 4: Dive Into the New Hampshire Market
Whether you’re looking at houses for sale in Hampton or anywhere else in the Granite State, here’s how to buy smart:
- Online Listings: If you’re wondering how to buy a house, starting with online listings is a good first step. Use platforms like Houzeo to search homes for sale by price, zip code, and more. You can also filter for must-haves like a backyard, waterfront view, etc.
- FSBO (For Sale By Owner) Homes: Explore FSBO listings, as they often offer more flexibility in price negotiations. This is because sellers aren’t paying 5% to 6% in agent fees.
Keene is the nicest and cheapest place to live in New Hampshire. The number of homes for sale in Londonderry is on the rise, thanks to its safe neighborhoods and diverse job opportunities.
Step 5: Make a Competitive Offer
In New Hampshire’s competitive housing market, homes tend to sell fast. Make sure you focus on real estate comps for a more accurate picture. Here’s a checklist to help you craft a strong offer:
- Seller’s Name and Address: Don’t forget the basics—include the seller’s legal name and property address.
- Price and Terms: Offer a price based on Fair Market Value (FMV) and comparable sales. In high-demand areas like Hanover, you might need to offer above the asking price to stand out.
- Down Payment: In New Hampshire, down payments usually range from 3% to 20%. In competitive markets like New Castle, a larger down payment can strengthen your offer.
- Earnest Money: Boost your earnest money deposit to show you’re serious, especially in hotspots like Manchester and Nashua, where homes can go fast.
- Contingencies: Include protections like home inspection, financing, appraisal, and insurance contingencies. In coastal New Hampshire, consider flood and windstorm insurance checks.
- Concessions: Request the seller to cover some closing costs. In New Hampshire, it’s common to negotiate repairs after the inspection, such as roof damage, HVAC problems, or plumbing leaks.
- Deadline for Seller’s Response: Set a 24 to 72-hour deadline to encourage a prompt reply. This helps prevent delays and keeps you on track for New Hampshire’s average 30 to 45-day closing timeline.
- Closing Costs in New Hampshire: Expect closing costs around 2% to 5% of the home’s price, including title insurance, property taxes, and lender fees.
Step 6: Conduct Inspections and Appraisals
A standard home inspection in New Hampshire should cover:
- HVAC System: Make sure the heating and cooling systems are properly checked and can handle New Hampshire’s cold winters and humid summers. It is essential for year-round comfort.
- Plumbing: Check for leaks, corrosion, and water pressure issues, especially in New Hampshire homes built before the 1980s. These houses may have outdated pipes that are prone to damage from freezing temperatures.
- Electrical System: Verify everything is up to code and can withstand storm-related power surges, which are common in New Hampshire.
- Roof Condition: Inspect for damage from heavy snowfall, missing shingles, ice dams, and age-related wear. Roof durability is especially important in New Hampshire due to frequent windstorms and harsh winters.
- Foundation and Structure: Look for cracks, moisture, or settlement issues, especially in areas near rivers, lakes, or sandy soils prone to drainage issues.
If you’re browsing homes for sale in Hampton Beach or elsewhere, ensure that you get a wind-mitigation inspection for hurricane risk. Also, if you have a condo over 30 years old and higher than two stories, make sure you get a Milestone Inspection for structural safety.
Once the inspection is complete, your lender will order a home appraisal to confirm the property’s market value. This step ensures the loan amount aligns with what the home is actually worth. It can impact final loan approval, especially if the appraisal comes in low.
Step 7: Close on Your New Hampshire Home
Almost there! Closing usually takes 30–45 days, from signing the contract to getting the keys in your hand. Here’s what you can expect:
- Final Walkthrough: Make sure all repairs have been completed, and the home is in the agreed-upon condition.
- Buyer Closing Costs: Expect to pay 2%–5% of the home price. This includes title fees and lender charges, plus prepaid taxes or insurance.
Once you sign the dotted line and transfer escrow funds—congratulations, you’re officially a homeowner. Grab those keys and cue your happy dance! 🎉
What Should You Do After Closing?
Welcome home! Now it’s time to handle a few must-dos to protect your investment:
- File for Homestead Exemption: If the home is your primary residence, apply for New Hampshire’s Homestead Exemption to reduce your property taxes. You could get a reduction in taxable value up to $350K for individuals and $500K for joint owners.
- Set Up Utilities: Get water, electricity, internet, and trash service connected, often through NHPUC.
- Pest Control: It’s crucial not to forget pest control, especially in humid areas like Concord and Portsmouth, where bed bugs, rodents, and cockroaches are a persistent issue.
- Get Insurance: Homeowners insurance is required if you’re financing, and flood insurance may be needed in FEMA-designated risk zones. Rates are higher in coastal areas like Seabrook and North Hampton due to high flood and hurricane risk.
- Home Maintenance Plan: Schedule AC tune-ups at least twice a year, clear gutters regularly, and inspect roofs for storm damage or algae buildup. Consider wind mitigation upgrades to reduce insurance costs.
How to Buy a House in New Hampshire Without a Realtor?
Start by researching neighborhoods and browsing listings on trusted sites like Houzeo. Then, schedule showings directly with sellers or their agents. You can also hire a real estate attorney to review contracts and handle legal details.
Next, get pre-approved for a mortgage, make an offer, schedule inspections, and negotiate repairs. With the necessary due diligence, you can buy a house without a Realtor.
Should You Buy a House in New Hampshire?
Absolutely! New Hampshire offers incredible opportunities for homeowners, whether you’re buying for investment, residence, or vacation. Moreover, with more homes being sold below the list price, now’s the best time to buy a house in New Hampshire.
Whether you’re drawn to Manchester’s growing job market or Hampton Beach’s coastal charm, New Hampshire has it all. There’s a spot to match every lifestyle and budget. So if you’re on the hunt, check out our list of the best places to live in New Hampshire!
