NH Housing provides cash assistance up to a maximum of 4% of the base loan amount to help borrowers defray the cost of down payment, closing costs, and prepaid escrow expenses associated with purchasing a home. The cash assistance can be used in combination with an FHA, RD or VA loan as well as in combination with NH Housing’s Home Preferred products. There are three cash assistance options, 4%, 3% and 2%. Income limits and all other NH Housing restrictions/guidelines apply. There is no monthly payment on the cash assistance and the lender treats it like a second lien at zero percent interest; the cash assistance lien can be forgiven if you stay in the home for a minimum of four years and make all your payments on time.
Buyers can also negotiate for the seller to help pay closing costs further reducing the total required outlay.