Everything you need to qualify, choose a loan program, survive the offer process, and close on your first home in MA or NH — in plain English.
They were standing in the doorway of the second bedroom, the one that could work as a nursery someday, and they were doing the math out loud — mortgage payment, student loans, car, savings — trying to decide whether the number that had just appeared on the open house flyer was a number they could say yes to.
I see this moment often. A couple — composite of many I have worked with over the years — standing in a bright room in a house they want, with a hesitation that is part financial and part something harder to name. The fear is not really about the number. It is about not knowing whether they understand the process well enough to trust their own decision.
I have been doing this work since 2007, approaching 2,000 sales across Massachusetts and New Hampshire. The first-time buyers I work with come in with two consistent fears: that their credit is not good enough, and that they have not saved enough. What I have found, time and again, is that both concerns are more manageable than they expect — but understanding your real position requires actual numbers, not guesses. The gap between what people think they know going into their first purchase and what they actually need to understand is where costly mistakes happen. This guide is built to close that gap.
What follows covers Massachusetts and New Hampshire specifically, because buyers along the I-93 and Route 495 corridors are regularly weighing both states. The information is specific, the tradeoffs are honest, and no steps are skipped.
The first home purchase has more moving parts than most buyers expect. The gap between what people think they know going in and what they actually need to understand is where costly mistakes happen. This guide is built to close that gap: specific numbers, honest tradeoffs, and no skipped steps. It covers both Massachusetts and New Hampshire because first-time buyers along the I-93 and Route 495 corridors are regularly weighing both states.
For a broader overview of the buying process, see our complete buyer guide. For the state-by-state comparison, see Massachusetts vs. New Hampshire: An Honest Comparison.
First-time buyers most often come in with two fears: that their credit is not good enough and that they have not saved enough. Both concerns are frequently more manageable than expected — but understanding your actual position requires talking to a lender, not guessing.
Conventional loans generally require a minimum credit score of 620, though rates improve materially at 700 and significantly at 740 and above. FHA loans — insured by the Federal Housing Administration — allow scores as low as 580 with a 3.5% down payment. Scores between 500 and 579 may still qualify for FHA with a 10% down payment.
Your credit score is not fixed. Specific actions produce measurable improvement in 60 to 90 days:
Debt-to-income ratio (DTI) is the percentage of your gross monthly income that goes toward all debt payments, including the new mortgage. Most conventional lenders want total DTI at or below 43% to 45%. FHA allows up to 50% in some cases. If you carry significant student loan, car loan, or credit card debt, DTI matters as much as credit score in determining what you qualify for.
The calculation your lender runs: add up all monthly minimum debt payments plus the estimated new mortgage payment (principal, interest, taxes, insurance, and PMI if applicable), then divide by your gross monthly income. If the result is above 43%, you either need to pay down existing debt, increase income, or accept a lower purchase price to get the mortgage you want.
Lenders want two years of consistent employment history, verified through W-2s, tax returns, and recent pay stubs. Salaried employees are the easiest to document. Self-employed buyers can absolutely qualify, but typically need two full years of tax returns showing sufficient net income — which sometimes means your most recent year's income is averaged with the prior year rather than taken at face value. Gaps in employment require explanation letters and supporting documentation.
The most important step before you start searching: get pre-approved — not just pre-qualified. Pre-qualification is an informal estimate; pre-approval involves a credit pull and documentation review. Sellers in competitive MA and NH markets will not take an offer seriously without a pre-approval letter.
The 20% down payment is the most persistent myth in residential real estate. It prevents more first-time buyers from moving forward than any other misunderstanding. Here is what the actual landscape looks like in 2026.
FHA loans are insured by the Federal Housing Administration and are available through most lenders. Requirements in 2026:
Fannie Mae HomeReady and Freddie Mac Home Possible allow first-time buyers to purchase with as little as 3% down. Key differences from FHA:
MassHousing is a quasi-public Massachusetts agency created specifically to expand homeownership. For 2026, key program features:
New Hampshire Housing Finance Authority (NH Housing) offers comparable programs for NH buyers:
Two additional zero-down options:
PMI across all programs typically runs 0.5% to 1% of the loan amount annually. On a $400,000 loan, that is $2,000 to $4,000 per year, or approximately $167 to $333 per month — a real cost, but for many buyers still less than continuing to rent while saving a larger down payment. See our first-time buyer page for more on how we work with buyers at every stage of financial readiness.
The down payment is not the only cash you need at closing. First-time buyers are consistently surprised by the volume of additional costs that close the transaction. Understanding them in advance means they cannot derail your plans.
| Cost Item | Typical Range | Notes |
|---|---|---|
| Home inspection | $450 – $750 | Paid at time of inspection, before closing. Non-refundable regardless of outcome. |
| Appraisal | $500 – $800 | Ordered by your lender; paid by the buyer. Required for all financed purchases. |
| Attorney fees | $800 – $1,500 | Real estate attorney review of Purchase and Sale Agreement and closing. Required in MA; strongly recommended in NH. |
| Title search and insurance | $600 – $1,200 | Lender's title insurance is required. Owner's title insurance is an additional cost and is strongly recommended. |
| Lender origination fees | 0.5% – 1% of loan | Varies by lender and product. Negotiate this — it is not fixed. |
| Prepaid escrow items | 2 – 3 months | Property taxes and homeowners insurance prepaid at closing. Amount depends on closing date within the year. |
| Recording fees | $100 – $300 | County registry fee for recording the deed and mortgage. |
| Moving costs | $1,000 – $3,500+ | Highly variable. Get at least three quotes; rates rise in peak season (May – September). |
On a $450,000 purchase with 5% down and 2.5% in closing costs, you are looking at $22,500 in down payment plus approximately $11,250 in closing costs — $33,750 total before moving costs. This is a real number. Know it before you get emotionally attached to a listing you cannot actually close.
One important note: closing costs can sometimes be negotiated into the transaction. In a slower market, a seller may agree to cover a portion of your closing costs (called a "seller concession") in lieu of a price reduction. We evaluate whether this makes sense on each transaction.
Once pre-approval is in hand, the search begins. For first-time buyers, the first several weeks often involve recalibrating expectations — which is healthy and necessary.
Before you tour a single home, write out two separate lists: true non-negotiables and strong preferences. Non-negotiables are things you will not compromise on regardless of how otherwise perfect a home is: a minimum number of bedrooms, a specific school district, proximity to a commuter rail stop. Everything else is preference.
Be honest about commute. Many buyers underestimate how much a 20-minute difference in daily drive time compounds over five years. Map your commute from specific neighborhoods at the time of day you would actually drive it.
In active MA and NH markets, well-priced homes in desirable areas routinely go to offer within five to ten days of listing, and sometimes within a weekend. Set up MLS alerts through your agent, and supplement with Zillow and Realtor.com notifications. When something new hits your criteria, schedule a showing within 48 hours — not within the week.
Your first several showings are research, not commitment. Each one teaches you something: what $450,000 actually buys in different neighborhoods, which layout works for your household's actual patterns, and what you were wrong about when you wrote your criteria. Buyers who make confident, well-calibrated offers are those who have done enough showings to know what good looks like at their price point.
Tour homes that photograph poorly. Dated staging and dark photos mask genuinely good bones, and those homes sometimes sit longer and offer more room for smart negotiation. Beautifully photographed homes occasionally disappoint in person. Your eyes on the property matter more than any listing photo.
The first offer is where most first-time buyer anxiety peaks — and where preparation separates buyers who close from those who lose. Three avoidable mistakes account for most missed opportunities.
The list price is a signal, not a ceiling. A well-priced home that has been on the market for seven days in a competitive MA neighborhood does not need a below-ask offer — it needs a competitive offer at or above ask, often with favorable terms, or you will lose it to someone who understood the market. Conversely, a home that has sat for 45 days with a price reduction has a different dynamic. We read the context before advising on a number.
Inspection and financing contingencies exist to protect you. Waiving them can make your offer more competitive, but each waiver removes an exit option if something goes wrong. The calculus is different for every property and every competitive situation. A pre-offer inspection — conducted before submitting the offer — can allow you to compete without an inspection contingency while still having the information you need to make a sound decision.
In a competitive market, waiting three days to decide on an offer means the home is gone. Clarity on your criteria, your budget ceiling, and your contingency posture — established before the right home appears — means you can move in hours, not days.
The Offer to Purchase in Massachusetts and New Hampshire is a legally binding document once accepted. Know what you are signing before you sign it. We walk through every line with our buyers before submission.
The home inspection is two to four of the most important hours in the homebuying process. Attend in person. Walk the property with the inspector, ask every question you have, and take your own notes. Reading the report alone later is a pale substitute for hearing an experienced inspector explain what they found and why it matters in the context of this specific home.
Every home inspection report is long. Every home has findings. The report will contain a mix of true deficiencies, deferred maintenance items, informational observations, and standard age-related notes. The buyer who reads a 60-page inspection report and panics at every item is as poorly served as the one who ignores it.
Triage findings into three categories:
After reviewing findings together, we advise on the right next step. Options include: requesting specific repairs before closing, negotiating a price reduction to account for needed work, accepting the home as-is with full knowledge of its condition, or exiting the contract under the inspection contingency if findings are serious enough to warrant it. The goal is not to extract every possible concession — it is to ensure your decision is fully informed and the agreed price reflects the home's actual condition.
Closing day should not be a surprise. By the time you arrive at the closing table, several things have already happened: you have reviewed the Closing Disclosure (which itemizes every cost, credit, and payment) at least three business days in advance; you have completed your final walk-through of the property within 24 hours of closing; and you have confirmed the wire transfer amount and receiving instructions with your attorney.
Closing in Massachusetts and New Hampshire is conducted by attorneys, at a title company or law office. You arrive with your government-issued identification and confirmation that funds have been wired. You sign a stack of documents that includes:
Your attorney explains each document. The process takes one to three hours depending on complexity.
After all parties sign and funds are confirmed, the title company records the deed with the county registry. Once recording is confirmed, funds are disbursed to the seller, and you receive the keys. The property is yours from that moment forward.
If you are also managing the sale of a current home to fund this purchase, see how we work with sellers — coordinating timing across both transactions is something we do regularly.
For a conventional loan, most lenders require a minimum credit score of 620, though rates improve meaningfully at 700 and above, and significantly at 740+. FHA loans — insured by the Federal Housing Administration — allow scores as low as 580 with a 3.5% down payment. MassHousing and NH Housing programs have their own guidelines and can work with buyers whose credit needs improvement. Your score is not fixed: paying down revolving balances, removing errors from your report, and avoiding new credit inquiries can produce meaningful improvement in 60 to 90 days.
No. FHA loans allow 3.5% down. Conventional loans allow as little as 3% down for first-time buyers through Fannie Mae HomeReady and Freddie Mac Home Possible. MassHousing offers down payment assistance for eligible Massachusetts buyers; NH Housing offers similar programs in New Hampshire, including the Home Flex Plus product. Loans below 20% down require private mortgage insurance (PMI), typically 0.5% to 1% of the loan amount annually, but for many buyers the monthly cost still compares favorably to continued renting.
Earnest money is a good-faith deposit paid when your Offer to Purchase is accepted, demonstrating your serious intent to complete the purchase. In Massachusetts and New Hampshire, buyers typically deposit 1% to 3% of the purchase price at offer acceptance, with the remainder of the down payment due at closing. The earnest money is held in escrow and applied toward your down payment and closing costs. If you back out of the transaction outside of a valid contingency, you may forfeit it.
Closing costs are fees paid at closing, separate from your down payment. They include lender origination fees, attorney fees, title search, title insurance, appraisal, inspection, and prepaid items like homeowners insurance and property taxes. In Massachusetts, budget 2% to 3% of the purchase price. In New Hampshire, roughly 1.5% to 2.5%. On a $450,000 purchase in MA, this means approximately $9,000 to $13,500 in closing costs in addition to your down payment.
Yes — within the terms of your contingencies. An inspection contingency allows you to exit or renegotiate based on inspection findings. A financing contingency allows you to exit if your mortgage falls through. Outside of valid contingencies, backing out of an accepted offer means you risk losing your earnest money deposit and, in some cases, face legal exposure. Understanding each contingency before you sign your offer is essential.
The Purchase and Sale Agreement is the formal, detailed contract that follows a mutually accepted Offer to Purchase. In Massachusetts, buyers typically have ten days from offer acceptance to execute this document. It sets out all final terms — price, contingencies, closing date, included items, and more. A real estate attorney reviews and negotiates this agreement on your behalf. Representation by an attorney in MA or NH real estate transactions is strongly recommended.
MassHousing is a quasi-public Massachusetts agency that offers below-market mortgage rates and down payment assistance to eligible buyers — typically first-time buyers with income and purchase price limits that vary by area. NH Housing provides similar programs for New Hampshire buyers, including the Home Flex Plus product that covers both down payment and closing costs. Both programs work through participating lenders — you apply through your lender, not directly through the agency.
A home inspection typically takes two to four hours. A licensed inspector examines the structure, foundation, roof, HVAC systems, electrical panel, plumbing, and visible components throughout the home. You receive a written report afterward. Attend in person — hearing the inspector explain findings is far more useful than reading the report alone. Not every finding requires action; every home has a report. Focus on structural, mechanical, and safety items first.
Closing in Massachusetts and New Hampshire is conducted by attorneys at a title company or law office. You sign the deed, mortgage note, closing disclosure, and required federal disclosures. Your down payment and closing costs are delivered via wire transfer or certified check — confirmed with your attorney in advance. Budget two to three hours. At the end, you receive the keys. You will have reviewed the Closing Disclosure at least three business days prior, so nothing should be a surprise at the table.
From accepted offer to closing, the typical timeline in Massachusetts is 45 to 60 days, though it can be compressed to 30 days or extended to 90 depending on financing type, inspection negotiations, and lender timelines. FHA loans typically take slightly longer than conventional loans to close. Cash purchases close fastest — sometimes in two to three weeks. Getting pre-approved before you begin searching removes several weeks of delay once you find the right home.
Book a no-pressure call and we will walk through your numbers, your timeline, and the right loan program for your situation — before you tour a single home.