Conventional Loan
Conventional Loan Benefits for Veterans in New Hampshire
Reviewed by the HomeMath editorial team Updated 2026-08-06
Key takeaways
- Veterans can qualify for conventional loans with as little as 3% down if they meet credit requirements.
- Conventional loans do not require a VA funding fee, unlike VA loans.
- Putting 20% equity in the home eliminates private mortgage insurance (PMI).
- New Hampshire has no state income tax on wages, which can affect overall tax planning.
- Veterans can keep their VA entitlement for a separate loan while using a conventional loan.
Conventional mortgages are offered by private lenders and are not backed by the Department of Veterans Affairs. For veterans, they can be an attractive option because they avoid the VA funding fee that is required on VA‑backed loans.
Low down‑payment possibilities
Many conventional programs allow qualified borrowers to put down as little as 3% of the purchase price. Veterans who have solid credit histories and steady income often meet the underwriting standards for these low‑down‑payment options.
Private mortgage insurance (PMI) considerations
When the down payment is less than 20%, lenders typically require PMI to protect themselves against default. Once the homeowner reaches 20% equity—either by paying down the balance or through home appreciation—the PMI can be cancelled, reducing the monthly payment.
Keeping VA entitlement
Because a conventional loan does not use the VA loan benefit, a veteran’s VA entitlement remains intact. This means the veteran can still apply for a VA loan on a future purchase or refinance without having to restore entitlement first.
New Hampshire specific factors
- New Hampshire does not levy a state income tax on earned wages, so there is no state‑level deduction for mortgage interest, though the federal deduction still applies.
- Most closings in the state are handled by attorneys rather than title companies, which can affect closing costs and timelines.
Veterans should also explore any state or local first‑time‑buyer assistance programs that may be combined with a conventional loan to further reduce the required down payment.
This article provides general information and does not constitute personalized financial advice. Consult a qualified mortgage professional for guidance specific to your situation.
FAQ
Can a veteran use a conventional loan and still keep their VA entitlement for a future loan?
Yes. Because a conventional loan does not use the VA benefit, the veteran’s entitlement remains available for a later VA loan or refinance.
What credit score is typically needed for a veteran to qualify for a conventional loan?
Lenders usually look for a credit score of 620 or higher for conventional financing, though a higher score can improve rates and reduce the need for mortgage insurance.
How does New Hampshire’s lack of a state income tax affect my mortgage costs?
Without a state income tax, you won’t receive a state‑level deduction for mortgage interest, but the federal mortgage interest deduction still applies. This can influence overall tax planning but does not change the loan terms themselves.
Do I have to pay private mortgage insurance (PMI) with a conventional loan?
PMI is required when the down payment is less than 20% of the home’s value. Once you reach 20% equity, you can request cancellation of PMI, which reduces your monthly payment.
Can I combine a conventional loan with New Hampshire first‑time‑buyer assistance programs?
Yes. Many local programs offer down‑payment grants or low‑interest loans that can be paired with a conventional mortgage, helping to reduce the upfront cash needed.
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