First-Time Buyer Programs in MA vs NH

Shopping on both sides of the Massachusetts and New Hampshire line can change your budget and your offer strategy more than you might expect. As a first-time buyer, you may be weighing properties in Amesbury or Essex County against towns just over the border while also eyeing condos in Cambridge, Newton, or Framingham. The right loan program can reduce your upfront cash, lower your monthly payment, and help you compete. This guide breaks down MassHousing, ONE Mortgage, FHA, VA, USDA, and New Hampshire Housing so you can match the program to your goals with confidence. Let’s dive in.

What changes across the MA–NH line

When you compare homes in Massachusetts and New Hampshire, program rules follow the property location, not where you live now. If you buy in Massachusetts, you can use MassHousing or ONE Mortgage. If you buy in New Hampshire, you would look at New Hampshire Housing. Federal programs like FHA, VA, and USDA are available in both states, subject to county limits and property eligibility.

Beyond programs, a few cost drivers vary by state and town:

• Massachusetts has a state income tax. New Hampshire does not tax wages. Your net take-home pay can change your debt-to-income ratio and your qualifying budget.
• New Hampshire tends to have higher property tax rates on average, which can raise monthly carrying costs even if your mortgage payment is similar.
• Home prices vary by area. Cambridge and Newton are often higher priced, while some NH border towns can also be competitive, especially near the seacoast or major commuter routes.
• Commuting patterns, municipal services, insurance needs, and condo fees differ by town and can affect both your monthly cost and resale.

Program snapshots at a glance

Use these quick summaries to understand down payment, mortgage insurance, and eligibility basics. Always verify current details, since program limits and fees change.

MassHousing (Massachusetts)

MassHousing offers affordable mortgage products for eligible buyers purchasing in Massachusetts. Many options are conventional loans with low down payment choices. If you put less than 20 percent down, private mortgage insurance (PMI) is generally required. Some loans can be paired with down payment assistance that reduces upfront cash through a second mortgage, which may be repayable or deferred depending on the specific program.

• Owner-occupancy is required and income and purchase-price limits apply.
• Credit, debt-to-income, and property-type rules vary by product.
• Second-mortgage assistance can add steps to closing, so coordination is important.

Explore current offerings on the official MassHousing website.

ONE Mortgage (Massachusetts)

ONE Mortgage has historically provided low down payment options to eligible buyers through participating lenders. It includes income and purchase-price limits plus owner-occupancy requirements. Program branding, administration, and some mechanics have evolved, so confirm availability, MI approach, and today’s eligibility with the administering agency or your lender.

FHA (Federal)

FHA aims to expand access to homeownership with flexible credit guidelines and a low minimum down payment for qualified borrowers. FHA requires both an upfront mortgage insurance premium and an annual premium paid monthly. Loan limits are set by county and differ in higher-cost areas.

• FHA can be helpful for buyers with limited credit history or smaller down payments.
• Condos must meet FHA rules unless an exception applies.

Review FHA program basics on HUD’s housing programs page.

VA (Federal)

VA loans serve eligible veterans, active-duty service members, and some surviving spouses. Qualified borrowers can purchase with zero down and no private mortgage insurance. Instead, most pay a one-time funding fee that can be financed into the loan. VA appraisals follow VA standards, which can affect repair negotiations.

• Owner-occupancy is required and lenders apply credit, DTI, and residual income standards.
• Strong VA pre-approvals are competitive, especially with clean terms.

Learn more on the VA home loan page.

USDA Rural Development (Federal)

USDA offers 100 percent financing for eligible buyers and properties in designated rural areas. The program includes an upfront guarantee fee and an annual fee. Income limits apply and property eligibility is based on a USDA map, so many urban or dense suburbs are ineligible.

• Owner-occupancy is required.
• Processing can take longer if additional USDA steps are needed.

Check the program overview with USDA Rural Development.

New Hampshire Housing (NH)

New Hampshire Housing provides low down payment mortgage options, down payment assistance, and sometimes mortgage credit certificates for eligible buyers purchasing in New Hampshire. Many products are conventional loans that require PMI with less than 20 percent down. NH Housing also supports FHA, VA, and USDA through participating lenders.

• Owner-occupancy, income caps, and purchase-price limits apply.
• Credit and DTI standards vary by product and county.

See current programs at New Hampshire Housing.

How programs shape your price and payment

Your down payment choice sets your loan amount and can change your monthly cost. Mortgage insurance or program fees also affect your payment and total cost of ownership.

• Lower down payment increases loan principal and often adds monthly MI. That can lower your cash to close but raise your payment.
• Some programs charge a one-time fee at closing. VA’s funding fee and USDA’s guarantee fee can be financed, which reduces cash needed but increases the loan balance.
• PMI and FHA’s annual mortgage insurance are recurring costs. FHA also requires an upfront premium. Conventional PMI can drop later if you reach the right equity position; program rules apply.
• Down payment assistance can make buying possible sooner. It can also add a second lien and extra steps that you should plan for in your offer timeline.

The best way to compare is to run side-by-side scenarios for the same property price and closing date. A local lender who works with these programs can show you the monthly impact of MI, HOA fees, property taxes, and insurance.

Competitiveness in multiple-offer markets

In hot neighborhoods like Cambridge and Newton, and in turnkey homes across the North Shore and southern New Hampshire, sellers often weigh financing type alongside price and terms.

What can help you win:

• A strong pre-approval from a lender experienced with the exact program you will use.
• Larger earnest money, clear timelines, and fewer lender conditions.
• If you are using a state program with down payment assistance, clear communication about the second mortgage and closing process.

Potential friction to plan around:

• FHA appraisals can trigger repair requirements based on HUD standards. Some sellers may prefer conventional or VA when condition items are likely.
• USDA adds property eligibility checks and sometimes longer processing.
• DPA second mortgages can add title and documentation steps, which can extend closing if not managed early.

If you plan to use MassHousing, ONE Mortgage, USDA, or NH Housing, choose a lender and agent team that can demonstrate experience to the listing side. That can reduce hesitation and make your offer feel more reliable.

Price and location trade-offs to expect

Cambridge, Newton, and Framingham

Higher prices and condo density often limit which first-time buyer programs fit. Program purchase-price caps can be a constraint. Condos may need program or agency approval. HOA fees count in your debt-to-income ratio, so they can lower the loan amount you qualify for even if the purchase price looks doable on paper.

If a state program caps your target price, you may need to increase down payment to use a standard conventional loan or consider nearby towns where the same program limits stretch further.

Amesbury and Essex County, Massachusetts

In and around Amesbury and coastal Essex County, you will see a wide range of property types. Some homes near waterways may require flood insurance, which affects monthly costs and underwriting. MassHousing, ONE Mortgage, FHA, and VA are common fits. USDA eligibility depends on the USDA map, so only some outlying areas may qualify. If you want to maximize affordability with low cash to close, consider MassHousing paired with down payment assistance and be sure to plan your timeline.

Southern New Hampshire border towns

If you buy in New Hampshire, New Hampshire Housing products can reduce upfront cash. Your net take-home pay may be higher without a state wage tax, which can improve qualifying ratios. Keep in mind that many NH towns have higher property tax rates on average, which can raise monthly payments and influence which price points you can pursue. Factor in commute time, services, and insurance when comparing total cost to a similar Massachusetts home.

Quick comparison: down payment and insurance

Use this as a simple reference, then verify details with your lender and the program’s site.

• MassHousing: Low down payment options. Conventional structure with PMI below 20 percent down. Often pairs with down payment assistance via a second mortgage.
• ONE Mortgage: Low down payment structure for eligible buyers. Income and purchase-price caps apply. Confirm today’s MI and lender process.
• FHA: Minimum down payment for qualified borrowers. Requires upfront and annual mortgage insurance premiums. County loan limits vary.
• VA: Zero down for eligible borrowers. No PMI. One-time funding fee for most borrowers, which can be financed.
• USDA: Zero down in eligible rural areas. Upfront and annual guarantee fees. Property and income limits apply.
• New Hampshire Housing: Low down payment conventional and DPA options for NH properties. PMI under 20 percent down unless a special product structure applies.

What to do next

Follow these steps to align your program with your target neighborhoods and your offer strategy:

1. Define where you want to buy. Decide whether your first choice is Massachusetts or New Hampshire, since state programs only apply where the property is located.
2. Get a program-specific pre-approval. Ask a lender experienced with MassHousing, ONE Mortgage, NH Housing, FHA, VA, and USDA to run side-by-side scenarios that include MI, taxes, HOA fees, and insurance.
3. Confirm eligibility early. Check income and purchase-price caps for your county and property type on each program’s site. Use MassHousing, HUD, VA, USDA, and New Hampshire Housing for current details.
4. Verify property and condo requirements. If you are targeting condos in Cambridge or Newton, ask your lender about condo approval rules before you write offers.
5. Build a competitive offer plan. Combine a strong pre-approval with clean terms, realistic timelines for your program, and earnest money that signals commitment.
6. Partner with local experts. A team that works both sides of the border can help you weigh taxes, property types, and offer norms town by town.

Ready to compare your options in real numbers and map a winning offer plan in Amesbury, Cambridge–Newton–Framingham, Essex County, or southern New Hampshire? Connect with The Barnes Team for data-driven guidance and local market expertise.

FAQs

What programs can I use for a home in Amesbury MA vs southern NH?

• Program options follow the property location. Massachusetts homes can use MassHousing or ONE Mortgage along with FHA, VA, and USDA if eligible. New Hampshire homes can use New Hampshire Housing as well as FHA, VA, and USDA if eligible.

How do down payment assistance second mortgages affect closing?

• DPA can reduce cash to close but adds a second lien and extra documentation. Plan for coordination with your lender and title company and allow enough time in your purchase and sale timeline.

Are FHA or VA appraisals harder to navigate than conventional?

• FHA and VA appraisals use program standards that can require certain repairs or property conditions. Conventional loans are often more flexible on minor items, which can influence seller preferences in multiple-offer situations.

Can I use state programs to buy a condo in Cambridge or Newton?

• Possibly, but condos may need program or agency approval and HOA fees count in your debt-to-income ratio. Check eligibility for the specific condo project with your lender early in the process.

How do MA income taxes and NH property taxes affect affordability?

• Massachusetts state income tax can lower net take-home pay used in qualifying, while many NH towns have higher property tax rates that increase monthly housing costs. Your lender can model both scenarios so you can compare total monthly payments by location.

How do I choose between MassHousing and New Hampshire Housing?

• Start with your target side of the border and your price point. Compare each program’s income and purchase-price caps, down payment options, and MI or fees. Then run side-by-side lender scenarios to see which option fits your monthly budget and offer timeline best.