FHA, VA & USDA Loans in NH: Compare Your Options

FHA, VA and USDA financing can offer different routes to buying a New Hampshire primary residence. Eligibility for a program does not establish that a particular loan is affordable or that every property qualifies. Compare the complete financing package with your lender.

The main differences

Program	Starting question	Important follow-up
FHA	Does your credit and documented financial profile qualify?	Review mortgage insurance, loan limits and property requirements.
VA	Do you qualify for a Certificate of Eligibility?	Confirm entitlement, lender approval, appraisal and funding-fee status.
USDA Guaranteed	Do both household income and the address qualify?	Check occupancy, lender underwriting and all loan charges.
USDA Direct	Do you meet the separate direct-program requirements?	Discuss eligibility, payment assistance and any subsidy repayment with USDA.

FHA: down payment is only one part

For a standard FHA purchase with traditional credit, HUD generally permits maximum financing at a minimum decision credit score of 580 or above; scores of 500–579 are limited to 90% loan-to-value. The usual maximum purchase LTV is 96.5% of adjusted value, subject to other restrictions. See the current HUD handbook and our FHA credit-score guide.

Ask the lender to calculate the down payment, premiums, closing costs and reserves for your file. Confirm the correct county and unit-count limit through HUD's limit lookup. FHA is not limited to first-time buyers, and satisfying a score threshold alone does not guarantee a loan.

VA: eligibility and entitlement are distinct from approval

The VA purchase-loan program can allow eligible borrowers to buy without a down payment, subject to entitlement, appraisal and lender requirements. Start with a Certificate of Eligibility and a lender's review of your finances and occupancy plans.

VA does not impose a loan limit for borrowers with full entitlement, but that is not unlimited borrowing approval. Remaining entitlement can affect the down payment needed. Use VA's entitlement explanation rather than applying one county cap to all veterans.

VA loans do not require monthly mortgage insurance. A funding fee may apply unless an exemption is established. Have the lender confirm your status and explain any financed fee, closing charges and required cash. VA's current funding-fee guidance separates these costs; zero down does not mean a cost-free closing.

USDA Guaranteed: check the address and household

The USDA Section 502 Guaranteed program works through approved lenders and can provide 100% financing for eligible primary residences in eligible rural areas. Household income and other eligibility requirements apply.

Enter the specific property in USDA's eligibility tool and obtain lender confirmation. A rural appearance, a town name or a claim that most of NH qualifies is not enough. Ask the lender to distinguish household income used for program eligibility from income used to support repayment.

Obtain a complete list of upfront and recurring costs and what may be financed. Do not equate no down payment with no closing cash or no ongoing program charges.

USDA Direct is a separate program

The Section 502 Direct program serves eligible low- and very-low-income applicants under its own rules and may provide payment assistance. Its application and subsidy provisions differ from a lender's guaranteed loan. USDA states that repayment of some or all payment subsidy may be required when ownership transfers or the borrower no longer occupies the home.

Ask USDA which program fits your circumstances, which documents are required and how funding and processing apply to your planned purchase.

NH assistance is an additional decision

Check NH Housing's current programs separately. Assistance is subject to eligibility and written repayment conditions; it should not be assumed to be a grant.

Ask for a side-by-side estimate with and without assistance. Review the first mortgage's pricing and the second mortgage's obligations together, including what happens on sale or refinance.

Match the program to the home

Before committing to a property, discuss its ownership form, condition, utilities and any repairs with the lender. A Seacoast condo may need project review; a private well or septic system may need specific documentation; a coastal property requires an actual insurance assessment.

Coordinate the appraisal and any program-related repairs with your contract deadlines. A financing appraisal is not a complete inspection or a warranty of condition.

Compare offers using the same assumptions

Request written estimates for the same price, down payment and closing schedule. Compare cash required, rate, APR, fees, insurance or program charges and the full monthly budget. Include property taxes, association costs and maintenance outside the loan payment.

Our NH mortgage comparison guide and closing checklist help organize that discussion. A lender determines eligibility and terms; your agent helps keep the property search and transaction aligned with them.

Plan your New Hampshire purchase

Contact Michael Bean to discuss a property or your Seacoast search. Start with the NH Seacoast resource hub and town comparison guide.