New Hampshire is an attractive destination for real estate investors looking for no state income tax, no sales tax, and a growing housing market. With a strong economy, rising home values, and high rental demand, New Hampshire offers diverse investment opportunities.
This guide will help you navigate the mortgage process, DSCR loan options, and refinancing strategies, so you can confidently invest in real estate markets throught the state.
We are providing the following discussion to you for informational purposes only. All investments, including real estate, involve risk, and we encourage you to invest carefully. The information in this article is not intended to replace or serve as a substitute for any legal, real estate, tax, or other professional advice or service. You should consult with a professional in the respective legal, tax, accounting, real estate, or other professional area before making any decisions or entering into any contracts relating to a rental property.
Many real estate investors use debt-service-coverage-ratio (DSCR) loans. DSCR loans are tailored to foreign investors looking to buy income-generating properties.
Unlike traditional loans, DSCR loans do not rely on the borrower’s personal income. Instead, they focus on the cash flow the property generates.
DSCR loans offer a flexible financing solution for foreign nationals looking to invest in New Hampshire. Here’s what makes them a strong option to consider:
When seeking a real estate investment loan in New Hampshire as a foreign national, it's essential to recognize that lending criteria can vary across different financial institutions1. Some lenders are more welcoming to international investors than others, so being aware of these differences can help you navigate the process with confidence.
Most Lenders: Prefer verifying U.S.-based income due to familiarity with local financial systems. If your income is sourced from outside the U.S., extensive documentation—such as foreign bank statements, pay stubs, or rental income reports—will be required. Many lenders may delay or even deny applications due to the perceived risks of foreign income.
Waltz: We streamline the process by accepting financial documents from your home country, including bank statements and income reports. More importantly, we prioritize the property's rental income potential over personal income, making loan approval faster and more accessible.
Most Lenders: Typically require a downpayment between 30% and 50% of the property's purchase price for DSCR mortgages. Additionally, many lenders mandate keeping financial reserves equivalent to a certain percentage of the loan to cover unexpected costs.
Waltz: Our down payment requirements can be as low as 25%, depending on individual circumstances. Reserve requirements are also more flexible, making it easier for foreign investors to secure financing and expand their investment portfolio in New Hampshire.
Most Lenders: Require a valid passport and visa. Some lenders may also insist on setting up a U.S.-based LLC for property investment, which involves additional paperwork such as an operating agreement.
Waltz: We only require a valid passport from your home country. If you haven’t formed an LLC yet, we can assist in establishing one quickly, including obtaining an Employer Identification Number (EIN) to meet legal requirements.
Most Lenders: Demand a U.S. credit score (FICO), which poses a significant challenge for foreign nationals who haven’t built credit in the U.S. Without this, securing a mortgage can be difficult.
Waltz: We eliminate this barrier by not requiring a U.S. credit score. Instead, we assess your financial history in your home country, ensuring fair access to mortgage opportunities in New Hampshire.
Find out how international investors have benefited from working with Waltz.
New Hampshire’s real estate market offers diverse opportunities for foreign investors looking to build a profitable property portfolio. From bustling city apartments to vacation rentals in scenic regions, the state provides options that cater to different investment goals. Understanding the types of properties available and their potential returns can help you make informed decisions and maximize your investment in New Hampshire.
Here’s a comprehensive look at the key property types available for purchase:
Investing in New Hampshire real estate offers numerous advantages, making it an attractive option for investors seeking stable and profitable opportunities. Here are some key benefits:
Investing in New Hampshire's real estate market offers diverse opportunities across various towns, each presenting unique advantages. Here are five top cities to consider:
Manchester, New Hampshire’s largest city, offers a thriving real estate market with rising home values, strong economic growth, and a high quality of life. In 2024, Zillow ranked Manchester as the most popular U.S. housing market, with home prices averaging $410,329, marking a 6.8% increase year-over-year. Properties sell quickly, going under contract in just 12 days, reflecting high demand.
With an unemployment rate of 3.10%, Manchester’s economy is fueled by biotechnology, healthcare, and technology, creating a steady demand for housing. Located just an hour from Boston, the city attracts professionals, families, and commuters looking for affordability and convenience.
For foreign investors, Manchester presents potential rental demand, rapid property appreciation, and a stable market, making it a considerable location for long-term real estate growth.
Nashua, New Hampshire's second-largest city, presents a robust real estate market driven by a strong job sector, diverse neighborhoods, and strategic proximity to the Massachusetts border. This combination makes it appealing to a wide range of buyers, from young professionals to families.
As of January 2025, Nashua's real estate market has experienced a 9.4% year-over-year increase in home prices, reflecting sustained demand and economic vitality.
The city's diverse employment opportunities and quality of life continue to attract new residents, bolstering the housing market.
Portsmouth, a historic seaport city, is renowned for its vibrant arts scene, cultural festivals, and coastal allure. The real estate market here is highly sought after, with properties often commanding premium prices due to their desirable waterfront locations and the city's rich cultural offerings.
In 2024, Portsmouth's housing market remained competitive, with substantial price growth observed over the past year.
The city's unique blend of historic charm and modern amenities continues to draw a diverse mix of buyers and investors.
Concord, the state capital, offers a dynamic economy and a range of attractions, making it an ideal market for real estate investors seeking profitable opportunities. The city is forecasted to experience a 1.6% rise in housing prices by April 2024, indicative of a positive trend in the local market.
With its growing market and potential for strong returns, Concord City provides a favorable investment climate, supported by its status as a political and cultural hub.
Londonderry, located in southern New Hampshire, is a burgeoning suburban town with a robust economy. The real estate market here offers a wide range of housing options, including new developments, making it attractive to families and young professionals alike.
As of January 2025, Londonderry's typical home value reached $570,045, marking a 6.5% increase over the past year. This growth reflects the town's appeal and the increasing demand for housing in the area.
Each of these cities presents unique opportunities for real estate investors, whether you're interested in residential properties, commercial investments, or rental opportunities. Their distinct characteristics and positive market trends make them worthy considerations for those looking to invest in New Hampshire's real estate landscape.
Investing in New Hampshire's real estate market offers promising opportunities, but it's essential to consider several key factors to make informed decisions. Here are five critical considerations:
By carefully evaluating these factors, investors can navigate New Hampshire's real estate landscape more effectively and make strategic decisions that align with their financial objectives.
Refinancing your investment property in New Hampshire allows you to replace your current mortgage with a new one, potentially securing more favorable loan terms, lower interest rates, or tapping into your property's equity. For foreign investors, the refinancing process typically involves:
This option allows investors to modify the terms of their existing mortgage, potentially securing a lower interest rate or improved loan conditions. While this can lead to reduced monthly payments, it's essential to evaluate the long-term financial impact, as a longer loan term may result in higher total finance charges.
Cash-out refinancing lets investors tap into the equity and receive cash at closing. Unlocking funds that can be used for:
Securing a DSCR mortgage in New Hampshire as a foreign investor may seem complex, but with the right approach, it can be an efficient and manageable process. Follow these steps to successfully obtain financing for your investment property:
1. Find a profitable investment
Start by identifying a property with strong rental potential. Focus on areas that meet your investment criteria and financial goals.
2. Gather essential documents
Prepare key documents like a valid passport for identity verification, proof of income (e.g., bank statements or rental income reports), asset documentation (investment portfolios or property ownership), and property details (appraisal reports, rental income estimates). Some lenders may also require a credit report from your home country.
3. Select a lender experienced with foreign nationals
Look for a lender who understands the unique needs of foreign investors. They should be familiar with challenges like verifying foreign income and managing alternative credit histories. Waltz specializes in DSCR loans for foreign nationals and can help simplify the process.
4. Set up an LLC and U.S. bank account
Most lenders will require foreign investors to form a U.S.-based LLC to hold the property title. Additionally, you’ll need a U.S. bank account to manage rent collection and mortgage payments2. Waltz can assist in setting up your LLC and bank account, streamlining the process.
5. Submit your loan application
Ensure your loan application is complete with all necessary financial details, such as proof of income and rental income potential. Speak with your lender beforehand to ensure everything is in order, making the submission process as quick and smooth as possible.
6. Perform due diligence
Before completing the purchase, conduct thorough due diligence. This includes inspecting the property, obtaining an appraisal, and reviewing the lender’s term sheet. Respond promptly to any additional requests from your lender to avoid delays.
7. Complete the purchase process
Once your loan is approved and due diligence is complete, proceed to finalize the transaction by signing the necessary legal documents (which can often be done virtually). After closing, you’ll officially own your New Hampshire investment property and can start generating rental income or hold it for long-term appreciation.
