Conventional mortgages are private‑sector loans that are not backed by the federal government. Lenders rely heavily on your credit score to gauge how likely you are to repay the loan.

Minimum credit score

Most major investors—Fannie Mae and Freddie Mac—set the baseline at a FICO score of 620. That number reflects the point at which the risk of default is considered acceptable for a standard loan.

Why lenders set these thresholds

Credit scores are a statistical summary of your past borrowing behavior. A higher score indicates a track record of paying bills on time and keeping balances low, which reduces the lender’s expected loss if you were to default. By establishing a floor, lenders protect themselves while still offering loans to a broad pool of borrowers.

Higher scores for better rates

Even though a 620 score can get you approved, lenders reward lower risk with lower interest rates and reduced fees. Generally:

  • Scores 700 – 749 often receive the most competitive rates.
  • Scores 750 + may qualify for the “best‑available” pricing tiers.

New Hampshire specific considerations

  • New Hampshire has no state income tax on wages, which can make your overall monthly housing cost lower compared with many neighboring states.
  • The state’s first‑time‑homebuyer assistance programs, such as the NH Housing Trust Downpayment Assistance, may have their own credit‑score criteria (often 640 +), so qualifying for those programs can require a slightly higher score than the baseline.
  • Closings in New Hampshire are frequently handled by attorneys rather than title companies, which can add an extra step in the documentation process but does not change the credit‑score requirement.

Other factors beyond the score

Lenders also look at debt‑to‑income ratio, down‑payment size, employment history, and cash reserves. A strong profile in these areas can sometimes offset a borderline credit score.

This article provides general information and is not personalized financial advice. Consult a qualified mortgage professional for guidance specific to your situation.