Home Town: First Time Homebuyer program

What is Home Town: First Time Homebuyer program?

Home Town: First Time Homebuyer program is a forgivable loan for homebuyers in Portsmouth, New Hampshire.

• City of Portsmouth FTHB DPA forgivable second mortgage: up to $20,000 for first-time buyers purchasing in Portsmouth. 5-year affordability period. 120% AMI limit. City-Specific (Portsmouth only).
• City of Portsmouth's Home Town: First Time Homebuyer program provides a forgivable second-mortgage DPA loan for first-time homebuyers purchasing within the City of Portsmouth, NH. Up to $20,000 in down-payment / closing-cost assistance, structured as a 0%-interest forgivable second mortgage with a 5-year affordability period (forgiven after 5 years of continued owner-occupancy.
• recoverable on a pro-rata basis if borrower sells / refinances / transfers / vacates within 5 years). Funded via HUD HOME / CDBG entitlement allocation to the Portsmouth Community Development Department. Pairs with FHA, USDA-RD, VA, conventional, or NH Housing first mortgage from any qualifying lender. Income limits up to 120% AMI for the Portsmouth-Rockingham service area: $110,208 (1-person) - $182,630 (8+ person household). Borrower contribution $1,500 minimum. Homebuyer education required.
• Funding comes from Federal and Local.

Do you have to pay it back?

Home Town: First Time Homebuyer program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by 5-year affordability period (0% interest forgivable second). If borrower sells, refinances with cash-out, transfers title, or vacates as primary residence within 5 years, balance is repayable on pro-rata basis (1/60 forgiven per month). After 5 years of continued owner-occupancy, lien is released and assistance is fully forgiven.
• The assistance is recorded in 2nd Lien position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Home Town: First Time Homebuyer program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Home Town: First Time Homebuyer program limits household income to 120% of the area median income, which varies by county and household size.

• City of Portsmouth / HUD income limits at or below 120% AMI: $110,208 (1-person) to $182,630 (8+ person) per HUD MFI table for Portsmouth-Rockingham, NH HUD Metro FMR Area. Higher AMI tier than Nashua reflects Portsmouth's higher cost of living and 120% (vs. 80%) AMI ceiling.
• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Home Town: First Time Homebuyer program caps the purchase price as follows: Per HUD-set maximum acquisition price for Portsmouth area (typically updated annually).

• Eligible property types include Single-family detached, condominium, townhouse, 2-unit owner-occupied. 3-4 unit on case-by-case review.
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

Home Town: First Time Homebuyer program names veterans, active-duty service members, reservists and National Guard members, surviving spouses, and buyers with disabilities among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Home Town: First Time Homebuyer program serves buyers purchasing in Portsmouth, New Hampshire.

How do you apply?

Applications for Home Town: First Time Homebuyer program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-certified homebuyer education providers including NeighborWorks Southern NH, The Way Home, and AHEAD..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Reserved directly with City of Portsmouth Community Development Department upon application; subject to fund availability., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.