First-time buyer programs in Massachusetts and New Hampshire, explained.

Most first-time buyers in the Merrimack Valley and Southern New Hampshire believe they need 20% down. They don't. Between state programs, FHA and a newer conventional option, the real question is which path fits your income, your credit and the home you want — not whether a path exists. Here is the map I draw for clients at the first meeting.

The four doors

1. MassHousing and the ONE Mortgage (Massachusetts)

Massachusetts has two first-time buyer programs worth knowing by name. MassHousing loans come with low down payments, below-market rates and, in many cases, down payment assistance that is layered on top of the mortgage. The ONE Mortgage (through the Massachusetts Housing Partnership) is a 30-year fixed loan with a low down payment, no private mortgage insurance, and an interest subsidy for qualifying households. Both have income limits that vary by town, and both require a first-time homebuyer education class — plan the class early; it is the step that most often delays an offer.

2. New Hampshire Housing (New Hampshire)

Across the border, New Hampshire Housing offers its own first-time programs, including options with down payment and closing-cost assistance built in. The income and purchase-price limits are generally friendlier than people expect, and Salem, Nashua, Derry and Londonderry all fall inside them for many households.

3. FHA

The federal FHA loan allows 3.5% down with flexible credit requirements. It carries mortgage insurance for the life of the loan at that down payment, which is the trade-off. Its quiet superpower: it works on two- to four-family homes when you live in one unit — which is how many of my clients buy their first investment and their first home in the same closing.

4. Conventional with 3% or 5% down

Conventional loans now allow 3% down for first-time buyers on single-family homes and 5% down on owner-occupied two- to four-unit properties. Mortgage insurance applies but drops off once you reach 20% equity — the reason buyers with stronger credit often end up here instead of FHA.

What "assistance" actually means

Down payment assistance is rarely a gift. It is usually a second loan — sometimes at 0% with payments deferred, sometimes forgiven after a set number of years in the home, sometimes repaid when you sell. None of those are bad. They are simply terms, and you should know which one you are signing. Ask three questions of any program: Is it forgiven, deferred or repaid? Does it limit how soon I can sell or refinance? Does it require the home to be my primary residence, and for how long?

The order of operations

1. Pre-approval first, with a lender who knows these programs. Not every loan officer works MassHousing or NH Housing files. I keep a short list of the ones who do.
2. Run the real monthly number. Principal, interest, taxes, insurance, mortgage insurance and — for condos — the fee. My buying-power tool does this for every town in the toolkit so you see the payment before you fall in love with a kitchen.
3. Take the education class if your program needs it. Many are online and finish in a weekend.
4. Keep cash for closing. Even with assistance, you will need money for the home inspection, appraisal and the first year of insurance. Budget it from the start.

The down payment is rarely the wall people think it is. The monthly payment is the real conversation — so that is where we start.

This note is general information, not legal, tax or financial advice, and not an appraisal or loan approval. Every situation is different — let's talk about yours.