Complete guide

The First-Time Home Buyer Guide for New Hampshire, Massachusetts and Maine

Buying your first home is a sequence of decisions, and each one is easier when you know what comes next. This guide walks you through the whole process in order, from budgeting to closing day, with the New England specifics that national guides leave out.

1. Know your real budget before you shop

Lenders do not approve you for a home price, they approve you for a monthly payment. That payment includes principal, interest, property taxes, homeowners insurance, mortgage insurance and any HOA dues. In New Hampshire especially, the town tax rate can change your affordable price by tens of thousands of dollars. Start with a comfortable monthly payment and work backward.

How much house can I afford in NH, MA or ME

2. Get your credit ready

Your credit score drives both your rate and your program options. Pay every bill on time, keep credit card balances well below their limits, and avoid opening new accounts in the months before you apply. FHA can work with scores as low as 580 for 3.5% down, while conventional programs and most specialty loans reward scores in the mid 600s and above with better pricing.

FHA loan requirements in NH, MA and ME

3. Save for more than the down payment

Plan for three buckets: the down payment (as low as 0% to 3.5% depending on the program), closing costs of roughly 2% to 5% of the price, and a cash reserve for moving and the surprises that come with older New England homes. Gift funds from family are allowed on most programs when they are documented correctly.

4. Learn the loan programs before you pick one

Conventional 97 needs just 3% down for qualifying first-time buyers. FHA needs 3.5% down and is flexible on credit. VA is zero down for eligible veterans and service members. USDA is zero down in eligible rural areas, which covers much of Maine and parts of New Hampshire. Each has tradeoffs in mortgage insurance, property standards and debt-to-income limits.

Compare loan programs

5. Claim your state assistance

New Hampshire Housing, MassHousing and MaineHousing all offer below-market first mortgages paired with down payment and closing cost assistance for buyers who meet income and purchase price limits. Most require a homebuyer education course, so complete it early. These programs commonly stack on top of FHA, conventional, VA or USDA financing.

First-time buyer programs in NH, MA and ME

6. Get a fully underwritten pre-approval

A pre-qualification is a conversation; a fully underwritten pre-approval is a commitment-level review of your income, assets and credit. In competitive New England markets, sellers and listing agents take underwritten buyers far more seriously, and it protects you from surprises after your offer is accepted.

Start your pre-approval

7. Shop with a team, not alone

Line up a buyer's agent who knows your target towns, a local loan officer who answers the phone, and a home inspector who understands older New England housing stock (knob-and-tube wiring, older roofs, private wells and septic systems are common). Ask each one questions until you understand every answer.

Areas we serve across NH, MA and ME

8. Make a smart offer and protect yourself

A strong offer balances price with terms: realistic timelines, an inspection contingency whenever possible, and proof your financing is solid. Do not waive protections you do not fully understand just to win a bidding war. There will be another house.

9. Navigate underwriting and the appraisal

After your offer is accepted, the lender verifies everything and orders an appraisal. Respond to document requests the same day, keep your finances frozen (no new debt, no large undocumented deposits, no job changes if avoidable), and let your loan officer handle any appraisal or condition issues that come up.

10. Close, then keep building equity

At closing you sign the final documents, bring your certified funds, and get the keys. Afterward, set aside 1% to 2% of the home's value per year for maintenance, review your mortgage annually, and revisit your loan when rates or your equity position change. Homeownership is a long game, and the fundamentals that worked decades ago still work now.

First-time buyer tips that work in any decade

Your first-time buyer checklist

Decide your comfortable monthly payment, not your maximum price
Check your credit and pay down card balances
Save for down payment, closing costs and a reserve
Complete a state homebuyer education course
Apply for NH Housing, MassHousing or MaineHousing assistance
Get a fully underwritten pre-approval
Choose a buyer's agent and a local inspector
Keep your finances frozen between offer and closing

First-time buyer FAQs

Who counts as a first-time home buyer in NH, MA or ME?

Most state and federal programs define a first-time buyer as anyone who has not owned a primary residence in the past three years. That means many previous homeowners re-qualify, and some programs waive the requirement in target areas or for qualifying veterans.

How much money do I need to buy my first home in New Hampshire, Massachusetts or Maine?

It depends on the program. VA and USDA can be zero down, conventional first-time buyer programs start at 3% down, and FHA is 3.5% down. On top of the down payment, plan for closing costs of roughly 2% to 5% of the price, minus any state down payment assistance or seller credits you receive.

What credit score do first-time buyers need?

FHA allows scores as low as 580 with 3.5% down, while conventional programs generally look for 620 and up, and specialty programs like medical professional loans often require 680 or higher. Higher scores mean lower rates and lower mortgage insurance costs.

Should I get pre-approved before looking at homes?

Yes. A fully underwritten pre-approval tells you your real budget, strengthens your offer with sellers, and prevents surprises after your offer is accepted. Shopping first and financing second is the most common first-time buyer mistake.