RD (Rural Development Loan)

 -- Not limited to first time home buyers but you cannot own any other real estate

-- Income limits and geographical limitations apply

-- No Sales Price or Loan Limits to worry about

-- No down payment is required

 --Seller can pay all closing costs and prepaid expenses associated with a purchase but this needs to be negotiated into the contract and is limited to the lesser of actual expenses or 6% (whichever is less). 

-- Minimum of 620 credit score required by Merrimack Mortgage Company for RD loans

-- Available for 1- unit  (single family) properties and FHA approved condos

--can be combined with NH Housing grants and subsidies

--Minor rehab funds may be available (up to $8000)

--Up to $35,000 in rehab funds available if combined with NH Housing's rehab program

--Take a look at the RD Info Sheet for more details

Veteran's Administration Loans

--Must be a qualifying veteran -- need a certificate of eligibility 

--A veteran's spouse may be a co-applicant on a VA loan if the Veteran is also on the loan

--A veteran can not have a non-veteran as a co-applicant unless the co-applicant is the Veteran's spouse

-- Not limited to first time home buyers

-- No income limits apply

-- Max loan is $417,000 for purchases and VA to VA refinances

--Max loan is $144,000 for VA cash out refinances and other loan types refinancing into a VA loan

-- No down payment is required

 --Seller can pay all closing costs and prepaid expenses associated with a purchase but this needs to be negotiated into the contract and is limited to the lesser of actual expenses or 6% (whichever is less). 

 -- Minimum of 620 credit score required by Merrimack Mortgage Company for RD loans

-- Available for 1- 4 unit  properties and VA approved condos

--can be combined with NH Housing grants and subsidies

--No rehab funds are available through VA

Conventional Loans (also known as conforming loans)

-- Not limited to first time home buyers -- No income limits -- The loan limit for a conventional loan is $417,000 (for a single family home or condo) -- Minimum down payments: 5% of the sales price in most markets for single family homes                                                      10% down for condos                                                      20% down for 2-4 unit owner-occupied properties  --Seller can pay some or all closing costs and prepaid expenses associated with a purchase but this needs to be negotiated into the contract and is limited as follows:  for owner occupied purchases of primary residences or second homes, if the down payment is 5% then the seller can pay 3% (of the sales price) toward closing;  if the down payment is less than 25% (but more than 5%), the seller can pay 6% toward closing and if the down payment is 25% or more, the seller can pay 9% toward closing.   -- Minimum of 620 credit score required by Merrimack Mortgage Company for conventional loans.  Note:  the interest rate may be higher for lower credit scores depending on the property type, the down payment, etc.  --rehab funds available under a special conventional program --monthly mortgage insurance payments will be required on loans with less than 20% down

--The loan limit for a conventional loan is $417,000 (for a single family home or condo)

-- Minimum down payments: 20% down for second home purchases

  --Seller can pay some or all closing costs and prepaid expenses associated with a purchase but this needs to be negotiated into the contract and is limited as follows:  if the down payment is between 10% and 25%, the seller can pay 6% toward closing and if the down payment is 25% or more, the seller can pay 9% toward closing.  

-- Minimum of 700 credit score required by Merrimack Mortgage Company for conventional loans.  Note:  the interest rate may be higher for lower credit scores depending on the property type, the down payment, etc. 

--monthly mortgage insurance payments will be required on loans with less than 20% down

--seasonal properties can be financed under this program

--The loan limit for a conventional loan is $417,000 (for a single family home or condo)

-- Minimum down payments: 5% of the sales price in most markets for single family homes

                                                     20% down for investor purchase of single family homes

                                                    25% down for investor purchase of 2-4 unit properties

  --Seller can pay some or all closing costs and prepaid expenses associated with a purchase but this needs to be negotiated into the contract.   The maximum amount the seller can pay toward closing is 2% of the sales price.

-- Minimum of 700 credit score required by Merrimack Mortgage Company for conventional loans. 

--The borrower can use rental income from the subject property to qualify if they have a history of managing rental property.   If the investor is a first time investor then rental income from the subject can not be used to qualify.

 -- In most communities in NH, the buyer must be a first time buyer

--Not limited to first time homebuyers  (but you cannot own any other real estate) in a targeted community

-- Income limits and geographical limitations apply

-- Sales Price limitations apply

--NH Housing loans must be combined with FHA or RD and the rules for the FHA or RD must be followed.

 --Seller can pay all closing costs and prepaid expenses associated with a purchase but this needs to be negotiated into the contract and is limited to the lesser of actual expenses or 6% (whichever is less). 

-- Minimum of 620 credit score required by Merrimack Mortgage Company for NH Housing loans

-- Available for 1- 4 unit  properties and NH Housing approved condos

-- A 2% grant is also available for all borrowers who fall within the income limits of NH Housing

--Up to $35,000 in rehab funds available if combined with RD