Financing Your Home in New Hampshire and Maine: A Practical Guide
Understanding your financing options before you start shopping for a home is one of the smartest moves you can make. The right loan can mean a lower monthly payment, less money out of pocket at closing, or both. At The Dolloff Team, we've helped buyers navigate this process for decades — and we're happy to walk you through what's available so you can make a confident, informed decision.
Get Pre-Approved First
Before you fall in love with a home, know what you can afford. A pre-approval letter from a lender tells you — and sellers — exactly where you stand. It's not the same as pre-qualification, which is just an estimate. Pre-approval involves a review of your credit, income, and assets, and carries real weight in a competitive market.
If you need a recommendation for a trusted local lender, just ask. We work with several experienced mortgage professionals in the NH Seacoast area and can connect you with someone who fits your situation.
Loan Types: What's Available to You
Conventional Loans
Conventional loans are the most common mortgage type and aren't backed by a government agency. They typically require a credit score of 620 or higher and a down payment of at least 3–5%. If you put down 20% or more, you avoid private mortgage insurance (PMI), which lowers your monthly payment. Conventional loans are a solid choice for buyers with good credit and stable income.
FHA Loans
FHA loans are backed by the Federal Housing Administration and are popular with first-time buyers or those with less-than-perfect credit. They allow down payments as low as 3.5% and are more flexible on credit scores. The tradeoff is mortgage insurance — both upfront and monthly — which adds to your overall cost. Still, for many buyers, FHA is the most accessible path to homeownership.
VA Loans
VA loans are one of the most powerful benefits available to veterans, active-duty service members, and eligible surviving spouses — and they're a cornerstone of what we do at The Dolloff Team.
Key advantages of a VA loan:
- No down payment required
- No private mortgage insurance (PMI)
- Competitive interest rates
- Flexible credit requirements
- Limits on closing costs
If you're a veteran or military service member relocating to the NH Seacoast or the Portsmouth area, a VA loan may be your best financing option. We work with VA buyers regularly and understand the process inside and out. Learn more about our military relocation services.
USDA Loans
USDA loans are backed by the U.S. Department of Agriculture and are available for homes in eligible rural and suburban areas — which includes parts of New Hampshire. Like VA loans, they require no down payment. Income limits apply. If you're looking at homes in more rural NH communities, it's worth checking whether a USDA loan is an option.
Down Payment Assistance in New Hampshire
Saving for a down payment is one of the biggest hurdles buyers face. New Hampshire has programs that can help:
New Hampshire Housing (NHH) offers first-time homebuyer programs including low down payment options and down payment assistance through their Home Flex and Home Preferred programs. Income and purchase price limits apply, but many buyers in the Seacoast region qualify.
HFA Preferred and HFA Advantage loans through NH Housing can be combined with down payment assistance, reducing what you need to bring to closing.
We can connect you with lenders who specialize in these programs and help you understand what you may qualify for.
Understanding Interest Rates
Interest rates directly affect how much home you can afford and what your monthly payment will be. Even a half-point difference in rate can mean hundreds of dollars a month on a Seacoast-priced home.
A few things to keep in mind:
- Rates vary by loan type, credit score, down payment, and lender — shop around
- Locking your rate protects you if rates rise between application and closing
- Points can be paid upfront to buy down your rate — sometimes worth it, sometimes not, depending on how long you plan to stay
- Your debt-to-income ratio (DTI) plays a major role in what rate and loan amount you qualify for
We don't provide mortgage advice, but we work closely with lenders who do — and we'll make sure you have the information you need to ask the right questions.
What to Expect at Closing
Closing costs in New Hampshire typically run 2–4% of the purchase price and include lender fees, title insurance, prepaid taxes and insurance, and attorney fees (NH requires an attorney at closing). Your lender will provide a Closing Disclosure at least three business days before closing so you know exactly what to expect.
New Hampshire also has a Real Estate Transfer Tax, paid at closing and split between buyer and seller. Learn how the transfer tax works here.
Ready to Talk Through Your Options?
Every buyer's situation is different. Whether you're a first-time buyer, a veteran using your VA benefit, or relocating from out of state, we'll help you find the right path forward. Reach out to Bill or Connie — no pressure, just a straightforward conversation.
The Dolloff Team at eXp Realty serves buyers throughout the NH Seacoast and Southern Maine. Bill Dolloff is a USMC veteran and Connie has over 25 years of real estate experience, and they are proud Homes for Heroes affiliates.