Negotiating Seller Credits, 2-1 Buydowns and Transfer Tax Splits in New Hampshire — Lilac Saltbox
Updated October 2026
On a $500,000 New Hampshire purchase, the standard buyer share of the Real Estate Transfer Tax is $3,750. A negotiated seller credit could help cover eligible closing costs, while a 2-1 buydown could reduce early payments. Those choices solve different problems: cash needed at closing versus temporary monthly payment relief.
Start with the transfer tax and allowable credits
New Hampshire's usual transfer tax is $0.75 per $100 for each party: 0.75% for the buyer and 0.75% for the seller, totaling 1.50%. The purchase agreement can allocate economic responsibility differently, but the closing must still account for the applicable tax.
An eligible New Hampshire Housing first-time buyer transaction may receive an exemption from the buyer half. Confirm qualification through New Hampshire Housing before subtracting that amount; first-time status alone is not enough to assume every transaction qualifies. The New Hampshire Department of Revenue Administration supplies transfer-tax guidance.
Seller-contribution limits depend on the mortgage program, occupancy, and financing structure. Credits cannot simply replace the borrower's required down payment or become unrestricted cash back. Ask the lender how seller-paid buyer transfer tax will be classified.
Compare a credit with a temporary buydown
A typical 2-1 buydown subsidizes payments calculated two percentage points below the note rate during year one and one point below during year two. The borrower then pays the full scheduled amount beginning in year three. The note rate itself does not change.
| Negotiated benefit | Main purpose |
|---|---|
| Closing-cost credit | Reduce eligible cash due at closing |
| 2-1 buydown funding | Reduce scheduled borrower payments temporarily |
| Permanent discount points | Reduce the note rate under agreed pricing |
| Price reduction | Reduce the purchase price and potentially loan balance |
Qualification generally uses the full note-rate payment, not the introductory subsidized payment. Property taxes and insurance can still rise during the buydown period.
Negotiate from a complete cost sheet
Use the closing cost estimator to identify actual eligible expenses before requesting a credit. Then compare the permanent payment using today's rates. Do not assume unused concessions can be refunded after closing.
Home Flex Plus, Home Preferred, and the $10,000 1stGenHomeNH assistance option may also affect an eligible buyer's cash needs. Verify current terms and permitted combinations rather than stacking every benefit automatically.
Lilac Saltbox can organize competing offers around cash to close, the year-three payment, and total financing cost, making a headline seller concession easier to evaluate.
Compare Current Mortgage Rates
Compare current APRs, points, fees, and estimated monthly payments from participating lenders below.
Loan Program Comparison: 2026 Benchmarks
Negotiating Seller Credits, 2 1 Buydowns and Transfer Tax Splits in New Hampshire — Choose a mortgage by comparing eligibility, upfront cash and total monthly costs, not the advertised rate alone. Conventional, FHA, VA and USDA serve different borrowers. Confirm county limits, taxes, insurance and lender requirements before comparing personalized Loan Estimates for your household.
Historical 2025 one-unit comparison: conforming $832,750; FHA floor $541,287. County and unit-count limits can differ.
| Loan program | Down payment / equity | 2026 one-unit baseline | Costs and page-specific comparison |
|---|---|---|---|
| Conventional | 3%–5% subject to eligibility | $832,750 | PMI generally below 20% down |
| FHA | 3.5% at 580+; 10% at 500–579 | $541,287 floor | 1.75% upfront MIP; 0.55% annual for >95% LTV, base loan ≤$726,200, term >15 years |
| VA | 0% for eligible borrowers | No VA limit with full entitlement | No monthly PMI; funding fee unless exempt |
| USDA | 0% for eligible borrowers | Income, address and repayment eligibility | Guarantee and annual fees; confirm current schedule |
| Jumbo | Lender-specific cash and reserves | Above applicable conforming limit | Lender-specific pricing and insurance |
| Home Equity / Refinance | Equity and underwriting dependent | Property and lender dependent | Compare closing costs, term and break-even |
Sources: FHFA limits; HUD FHA limits.
Editorial Methodology & Primary Sources
Verification date: Not recorded; check the primary source and lender timestamp before relying on an estimate.
Rate comparisons use participating lender feeds, not a whole-market survey or guaranteed offers. Freddie Mac PMMS is a market benchmark, not a personalized quote. Calculator models rely on published regulatory formulas and disclosed assumptions rather than fabricated first-person loan testing.
Monthly principal and interest use the amortization formula P × r / (1 − (1 + r)−n), where r is the monthly note rate and n is the number of payments; at zero interest use P / n. PITI adds monthly property taxes and homeowners insurance; PMI is separate. APR includes applicable finance charges under Regulation Z and is not the note rate used for payments. Compare lender Loan Estimates for actual APR and fees.
- Consumer Financial Protection Bureau (CFPB) — Loan Estimates, APR and borrower disclosures; Regulation Z.
- U.S. Department of Housing and Urban Development (HUD / FHA) — FHA program guidance.
- U.S. Department of Veterans Affairs (VA) — VA loan eligibility and benefits.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — published rate benchmarks.
- U.S. Census state tax collections — state property tax benchmarks; confirm parcel-specific assessments and exemptions with the state revenue department and local assessor.
- New Hampshire Housing — state housing finance and property tax authority.
- New Hampshire Department of Revenue Administration — state housing finance and property tax authority.
The payment snapshot uses illustrative annual taxes of 1% of home price, $1,200 insurance and 0.5% PMI below 20% down, not verified local quotes. Other calculators disclose their inputs and assumptions. Published guidance and lender feeds may change independently; confirm current program rules, taxes and offers before a decision.