No Income Tax, No Sales Tax — Everything Lands on the Property
New Hampshire funds itself almost entirely through property taxes, and the effective rate is among the highest in the United States.
For a resident that is a reasonable trade. For an investor it is a structural problem, because property taxes sit inside both your debt-to-income calculation and any debt service coverage ratio. Every dollar of tax reduces what you can borrow and reduces whether the property can carry itself.
The effect compounds with something else: rates vary enormously by town. New Hampshire municipalities set their own rates, and two comparable properties fifteen minutes apart can differ by thousands of dollars annually. That variation is large enough to move a property across the DSCR floor by itself.
Pull the actual municipal rate for the specific town before you underwrite anything. In most states that is diligence. In New Hampshire it is the deal.
When the tax burden pushes a property below DSCR floor which happens often here a 1099 loan qualifying on your documented income is what still works.
The Lenders
Select Home Loans
Select Home Loans is a Non-QM mortgage broker (NMLS #2384002) writing 1099 investor loans in New Hampshire. Working across multiple wholesale investors matters here because appetite varies for seasonal short-term rental property and for the older housing stock that makes up much of the state’s inventory.
We quote DSCR and bank statement alternatives alongside the 1099 program so you can compare paths on the same property.
Get a quote · (888) 550-3296
Other lenders worth calling — listed in no particular order:
OnPoint Mortgage Pro (NMLS #2134550) A brokerage licensed in New Hampshire with a self-employed and Non-QM focus, publishing detailed analysis of bank statement expense factor negotiation.
Capital Home Mortgage New Hampshire New Hampshire operations across 1099, bank statement, asset, and DSCR programs.
Griffin Funding Publishes New Hampshire-specific DSCR and Non-QM content, with 1099 qualifying on 90 to 100 percent of gross income, a 620 minimum credit score, and DSCR programs down to 0.75.
Mortgage Equity Partners A New England lender offering 1099-as-income, P&L only, DSCR, asset qualifier, and foreign national programs across the region.
Angel Oak Mortgage Solutions One of the largest dedicated Non-QM investors nationally, with a purpose-built 1099 income program. Reached through a broker.
Mbanc A direct lender publishing New Hampshire investment property programs across bank statement, 1099, asset utilization, and DSCR. Note they serve New Hampshire for investment property only; owner-occupied requires a different lender.
Verify current licensure and program availability before relying on any listing. See the disclaimer at the end of this page.
Many New Hampshire Investors Are Massachusetts Residents
A substantial share of New Hampshire investment purchases particularly in the southern tier around Nashua, Salem, Derry, and Manchester are made by people who live and earn in Massachusetts.
If that describes you, two practical points.
Confirm your lender is licensed in both states. If your portfolio spans the border, or might, a lender who writes only New Hampshire handles half your pipeline.
Your income documentation travels; your property rules do not. New Hampshire’s tax structure, tenant law, and municipal requirements differ substantially from Massachusetts. Notably, New Hampshire has no equivalent to the Massachusetts Lead Law’s affirmative deleading obligation, though federal pre-1978 disclosure requirements still apply. Do not assume your Massachusetts playbook transfers.
How Qualifying Works
A 1099 loan qualifies you on income documented on your 1099 forms rather than the net profit shown after deductions.
Programs split into two camps. Some apply 90 percent or more of gross 1099 income with no expense deduction. Others apply an expense factor of 10 to 25 percent first.
On $180,000 of annual 1099 income:
| Method | Qualifying income |
|---|---|
| 90% of gross | $162,000/yr — $13,500/mo |
| Gross less 20% expense factor | $144,000/yr — $12,000/mo |
| Net profit from your tax return | frequently under $80,000 |
Because New Hampshire’s tax burden eats DTI capacity so aggressively, the spread between the top two rows frequently determines whether a purchase is reachable at all. Push on the expense factor, and ask whether a CPA letter documenting your actual ratio will move it.
Model the payment with our mortgage calculators, using the real municipal rate.
One year or two
One-year suits growing income or a recent shift to independent work with prior experience in the same field.
Two-year suits seasonal income which in New Hampshire covers a lot of ground: ski industry contractors, Lakes Region and seacoast hospitality, and construction working a short northern building season.
The two-year self-employment history requirement is separate from the two-year income lookback. Ask about both.
New Hampshire’s 1099 Population
Technology and professional consultants across the southern tier, many serving Boston-area clients while living in New Hampshire for the tax treatment.
Construction and specialty trades, working a compressed season and an old housing stock with real restoration demand.
Ski industry and outdoor recreation contractors in the White Mountains and Lakes Region — instructors, guides, patrol, and seasonal operators.
Hospitality and tourism operators on the seacoast and in the Lakes Region.
Healthcare contracting around the Manchester, Nashua, and Lebanon medical centers.
New Hampshire Investment Markets
Southern tier Nashua, Manchester, Salem, Derry has the strongest year-round rental demand, driven by Boston-commuter employment and a genuine local economy. This is where DSCR is most likely to work, tax burden permitting.
Seacoast — Portsmouth and surrounds commands high values with strong rents but ratios that frequently do not clear.
Lakes Region and White Mountains are seasonal short-term rental markets. Several towns have moved to regulate short-term rentals; verify the specific municipality. Annualized rent from a seasonal property gets discounted, which is when the 1099 path beats DSCR.
North Country offers low entry prices and is where loan minimums bind hardest.
Other New Hampshire Specifics
Non-judicial foreclosure by power of sale is available, which is comparatively favorable for investors and supports better LTVs than in judicial New England states like Connecticut and Maine.
Older housing stock. Much of the state’s rental inventory predates 1978, with the appraisal and condition consequences that brings heating systems, knob-and-tube, roof and sill condition.
Heating cost is a material line item in a cold-weather state relying heavily on oil and propane. Where the landlord pays heat, it enters the DSCR calculation directly.
No state property transfer disclosure equivalent to some neighbors, but New Hampshire does levy a real estate transfer tax split between buyer and seller. It does not affect your loan; it affects your returns.
Investment Property Terms
- Down payment: 20–25 percent typical, better pricing at 25 percent and above
- Credit: 620 floor at most investors; real improvements at 680, 700, 740
- Reserves: 6–12 months PITIA larger than the purchase price implies, given the tax line
- Prepayment penalties: common on investment property, typically 1–3 years, often buyable at a quarter to a half point
Compare with our purchase loan options and refinance loan options.
1099 or DSCR?
Use DSCR in the southern tier where rents are strong and the municipal rate is manageable but only after you have run the ratio on the actual tax bill.
Use a 1099 loan on the seacoast where prices have outrun rents, on seasonal Lakes Region and White Mountains property, in high-rate towns where taxes sink the ratio, or where the property needs work before it rents.
The New Hampshire pattern is that the same property is financeable one way in one town and the other way fifteen minutes down the road. Run both.
Questions to Ask
- What is the municipal tax rate in this town, and what does it do to the DSCR?
- Are you licensed in Massachusetts too? (Ask this if you live or invest across the border.)
- Do you qualify on gross 1099 income, or apply an expense factor?
- My income is seasonal will you run the 24-month scenario?
- How do you handle a pre-1940 property on appraisal?
- Can you quote DSCR on the same property?
More from Select Home Loans: DSCR loans · Learning Center · Mortgage calculators · About Select
Disclaimer
The lenders described on this page are listed in no particular order. Select Home Loans appears first because we publish this page and originate these loans; we have a commercial interest in this category. No lender listed has paid for placement.
This page reflects our opinion based on publicly available information at the time of writing. It is general information, not a recommendation, an endorsement, or an offer of credit. Lender programs, guidelines, licensure, pricing, and availability change frequently and without notice, and nothing here guarantees that any lender is currently licensed in New Hampshire, currently offers the program described, or will approve your file.
Municipal tax rates, short-term rental ordinances, and transfer tax treatment vary and change; verify independently. Consult a licensed mortgage professional and where appropriate a tax advisor, attorney, or financial advisor before making any borrowing decision. Verify any lender’s licensure through NMLS Consumer Access at nmlsconsumeraccess.org.
Select Home Loans, NMLS #2384002. Equal Housing Opportunity.
