Saving for a down payment can feel like the one thing standing between you and a home in Cornish or the wider Upper Valley. You are not alone, and you have real options. From New Hampshire Housing programs to USDA and VA loans, several paths can reduce or even remove the upfront cash you need. This guide breaks down what works locally, what to expect, and the steps to take next so you can move forward with confidence. Let’s dive in.
What “down payment help” looks like in NH
New Hampshire buyers often piece together a plan from a few proven sources. Understanding the big categories helps you see where you might fit.
- State housing finance agency programs. New Hampshire Housing is the primary state-level resource. It commonly offers deferred or forgivable second mortgages for down payment and closing costs, along with low-interest mortgage options. Programs change by income, purchase price, and county, so you will verify details with an approved lender.
- Federal loan options that lower or remove the down payment. The USDA Rural Development guaranteed loan can provide 100% financing for income-eligible buyers purchasing in eligible rural areas. VA loans serve eligible veterans, service members, and some spouses with no down payment in many cases. FHA loans require a minimum down payment but allow gifts and certain assistance. Conventional low-down programs can start around 3% down and may pair with assistance.
- Local municipal and nonprofit help. Larger Upper Valley towns such as Lebanon and Hanover sometimes offer targeted funds or work with regional partners. Availability varies by town and funding cycle.
- Employer-assisted programs. Some local employers or institutions offer forgivable loans or grants for their workforce. In the Upper Valley, colleges and hospitals are common examples.
- Lender-arranged assistance and private options. Banks and credit unions may provide their own DPA or partner with state programs.
- Gift funds from family. Gifted funds are allowed under many loan types with the right documentation.
In practice, many Cornish and Upper Valley buyers focus on New Hampshire Housing, USDA, employer or municipal support if available, and lender or gift solutions.
Top paths for Cornish and Upper Valley buyers
New Hampshire Housing programs
For Cornish and nearby towns, New Hampshire Housing is often the first stop. You will typically access assistance as a second mortgage or grant layered with a primary mortgage. Expect income and purchase-price limits, and plan on using a New Hampshire Housing–approved lender. Because details shift, verify current terms, eligible loan types, and participating lenders directly with the agency or your lender.
USDA Rural Development in Sullivan County
Cornish is a rural community, and many rural New Hampshire addresses fall within USDA-eligible areas. The USDA guaranteed loan can provide 100% financing for eligible buyers who meet income and property guidelines. Check property eligibility and learn about borrower rules through USDA Rural Development. Your lender will also confirm current household income limits for Sullivan County.
VA home loans for eligible borrowers
If you are a veteran, active-duty service member, or qualifying spouse, you may be able to buy with no down payment using a VA loan. These loans have specific eligibility and a funding fee structure. You can review eligibility and program details through the VA Home Loan program.
Local and employer-based assistance
Lebanon and Hanover are more likely than Cornish to maintain town-administered programs or partnerships that support first-time buyers or workforce housing. Availability changes, so contact municipal housing or planning staff to ask about current programs or Community Development Block Grant funds. Some Upper Valley employers, including colleges and hospitals, may offer employee homebuyer assistance. Check with your employer’s HR or benefits office for details and eligibility.
Low-down FHA and conventional options
If you do not qualify for USDA or VA, you can still keep cash needs lower. FHA loans allow minimum down payments paired with permitted gifts or assistance, while conventional options like Fannie Mae HomeReady and Freddie Mac Home Possible often start at 3% down and may allow DPA layering. Your lender can compare the monthly cost, mortgage insurance, and any assistance pairing rules.
Lender DPA and gift funds
Some local banks and credit unions run their own assistance or promotions. If family is helping, most loan programs allow gift funds with a gift letter and proper documentation. Your lender will guide you on what to provide and how to source funds.
Who qualifies and what to expect
Most assistance programs follow a set of themes. Plan for these common requirements and constraints:
- Income limits. Programs often target low to moderate incomes that vary by household size and county.
- Purchase price or loan limits. Expect a cap aligned with program goals.
- First-time buyer status. Some programs require that you have not owned a home in the last three years; others do not.
- Primary residence rule. Assistance generally requires you to live in the home as your primary residence.
- Property type. Single-family homes, condos with approved documents, planned communities, or 1–4 unit properties where you live in one unit are typical.
- Credit and DTI standards. You still must qualify for the mortgage under standard underwriting.
- Counseling. Some programs require homebuyer education from a HUD-approved provider.
- Geographic limits. USDA requires specific rural property eligibility; municipal funds may be limited to town boundaries.
- How funds work. Assistance may be forgivable, deferred, zero-interest, or a lender credit. Some programs require repayment if you sell or move within a certain time.
How to get started in the Upper Valley
Follow this simple, local-first checklist to move from research to action.
- Get prequalified with a lender. If you plan to use state assistance, look for a New Hampshire Housing–approved lender. A quick prequal reveals your price range, credit items to address, and whether you will likely need assistance.
- Verify program and property eligibility. Check current New Hampshire Housing offerings and lender participation. For rural 0% down, review property rules on USDA Rural Development. For VA, confirm service-related eligibility at the VA Home Loan program. Ask Lebanon or Hanover housing staff about any local assistance.
- Complete homebuyer education if advised or required. A HUD-approved counselor can help you compare programs and get mortgage-ready. Start with HUD’s housing counseling resources.
- Gather documents early. Expect to provide ID, Social Security numbers, recent pay stubs, W-2s or tax returns, bank statements, details on gift funds, and the purchase contract once you are under agreement.
- Apply for assistance through your lender. Most DPA is submitted alongside your main mortgage paperwork. Your lender will coordinate with the program sponsor.
- Compare total cost and conditions. Ask for written terms. Clarify the assistance type, any interest or fees, and whether there is repayment or recapture when you sell or move.
- Confirm timelines and funding. DPA funds can be limited. Apply early and ask how long your approval or reservation holds.
For more consumer guidance on down payment assistance and how to avoid scams, review resources from the Consumer Financial Protection Bureau.
Local tips for Cornish buyers
- Check both USDA and New Hampshire Housing. In a rural town like Cornish, USDA may be a strong fit if the property and your income qualify. Compare that to a New Hampshire Housing mortgage with DPA to find the best payment and total cost for you.
- Look beyond Cornish for municipal funds. Lebanon and Hanover are more likely to have town-level programs or nonprofit partnerships. A quick call to their housing or planning offices can save you time.
- Ask your employer. Large Upper Valley employers sometimes offer homebuyer assistance. Your HR or benefits team will have the most current info.
- Plan for timelines. If you see a home you love, having your lender and documents lined up helps you reserve limited DPA funds faster.
Risks and fine print to consider
- Lender participation varies. Not all lenders offer every program, and rules can affect interest rates or fees. Work with a lender familiar with the assistance you want.
- Forgiveness and repayment rules matter. Some DPA is forgivable over time, while other help must be repaid when you sell, refinance, or move. Get it in writing.
- Funds can run out. Many programs are first come, first served, or operate within an annual budget. Start early.
- Occupancy and resale rules apply. Most assistance requires you to live in the home as your primary residence and may restrict certain transfers for a period.
Work with a local guide you can trust
You do not have to navigate this alone. A local advisor who knows Cornish, Lebanon, Hanover, and the wider Upper Valley can help you line up the right lender, confirm program eligibility, and craft a winning offer once you find the home. If you want a clear path from prequalification to keys in hand, let’s talk about your options and timeline.
Ready to map your next steps? Connect with Lori Shipulski for local guidance, lender introductions, and a plan tailored to your goals.
FAQs
What down payment programs help first-time buyers in Cornish?
- Many first-time buyers look at New Hampshire Housing assistance, USDA for eligible rural properties, and lender or employer programs, with specifics verified through an approved lender.
How does USDA loan eligibility work near Cornish, NH?
- The property must be in a USDA-eligible rural area and your household must meet income rules, which you can review and confirm through USDA Rural Development.
Can I pair New Hampshire Housing assistance with FHA or conventional loans?
- Often yes, since many state programs layer with FHA or conventional mortgages, but exact combinations and terms depend on current New Hampshire Housing rules and lender guidelines.
Do Dartmouth College or Dartmouth Health employees have homebuyer assistance?
- Some large local employers offer employee programs, so check directly with your HR or benefits office to learn about current eligibility and terms.
What documents do I need to apply for down payment assistance?
- Plan to provide ID, Social Security numbers, pay stubs, W-2s or tax returns, bank statements, any gift letters, and later your signed purchase contract and property details.
Are condos or multifamily homes eligible for assistance in NH?
- Many programs allow condos with approved documents and 1–4 unit homes where you live in one unit, but confirm property type rules with your lender and the program sponsor.
