Every home purchase has its own guidelines and financial responsibilities. If you’re a potential homeowner in New Hampshire, here are the rules you need to know.
The real estate transfer tax is a tax on the sale, granting and transfer of real estate. In New Hampshire, the tax is imposed on the buyer as well as the seller at a rate of $0.75 per $100 of the sale price. Mortgage lenders are responsible for properly disclosing the exact amount of transfer taxes payable once you have indicated interest in a particular property.
The average property tax rate in New Hampshire is 1.86% of the home’s value, which works out to a median property tax of $4,636.00 for a home worth the median value of $249,700, according toTax-Rates.org. However, rates vary by county. In Rockingham County, which has the highest property taxes in the state, the average property tax bill is $5,344. Carroll County has the lowest property taxes, averaging around $2,582 per year.
New Hampshire does offer property tax exemptions. The state has an elderly exemption, a veteran’s tax credit and a veteran’s exemption.
Theconforming loanlimit across most counties in New Hampshire is $484,350 for a single-family dwelling. In Rockingham and Strafford counties, the limit is higher at $688,850.
Conforming loan limits are the maximum origination balances that may be purchased by government-sponsored entitiesFannie Mae and Freddie Mac.
New Hampshire homebuyers may take advantage of several programs aimed to help them achieve their goal of homeownership. Depending on your specific situation, you may find that at least one program is suitable for your needs.
Both New Hampshire housing programs provide cash assistance for as much as 3% of the base loan amount to help homebuyers with their down payment and closing costs. This is issued as a second mortgage that is forgiven in full after four years, unless during that time the borrower sells, refinances or files for bankruptcy. In all of those cases, the assistance must be repaid.
The programs differ in terms of the loans they service: Home Flex Plus may be applied to FHA, VA and RD mortgages, while Home Preferred Plus is applicable to conventional loans.
New Hampshire Housing’s Purchase Rehabilitation Mortgage program provides up to $35,000 in additional funding to the purchase mortgage, with as little as 3.5% down. This extra funding can assist with repairs and upgrades, including cosmetic issues, energy-efficient improvements and safety improvements. This program can be combined with Home Flex Plus.
The Home Start Homebuyer Tax Credit provides a long-term tax benefit to help first-time homebuyers in New Hampshire afford their goals of homeownership. This federal Mortgage Credit Certificate lets a homebuyer claim a tax credit for a part of the yearly mortgage interest, up to $2,000 for the life of the original loan so long as the buyer continues to live in the home.