Conventional vs. FHA, VA & USDA: Which Loan Fits New Hampshire Buyers?

Loan Types Compared

Conventional vs. FHA, VA & USDA: Which Loan Fits New Hampshire Buyers?

Reviewed by the HomeMath editorial team Updated 2026-08-06

Key takeaways

Conforming loan limit in New Hampshire is $726,200 (subject to annual change).
Conventional loans can require as little as 3% down with private mortgage insurance, but 5% is a common minimum.
A credit score of about 620 is typically needed for a conventional loan; higher scores improve rates.

Conventional vs. Government-Backed Loan Options

What buyers in New Hampshire actually weigh is a conventional loan against FHA, VA, or USDA financing. Here is how the four main programs differ at a national level — your lender will verify the exact numbers for your New Hampshire situation.

Conventional: best for buyers with a credit score of 620+ and at least 3% down; private mortgage insurance (PMI) drops off automatically once your balance reaches 78% of the original value.
FHA: allows credit scores as low as 500–580 with a 3.5% down payment, but charges an upfront and annual mortgage insurance premium (MIP) that typically lasts the life of the loan on 30-year terms.
VA: offers $0 down and no monthly PMI for eligible veterans and service members, in exchange for a one-time funding fee (often waived for disabled veterans).
USDA: offers $0 down for eligible buyers in designated rural areas of New Hampshire, with low mortgage insurance and county income limits.

Your ideal choice depends on your credit tier, down payment savings, and whether you qualify for VA or USDA programs. Run the numbers below with our calculator to see how each program shapes your real monthly payment.

When you’re buying a home in New Hampshire, the most common mortgage product is a conventional loan. Conventional loans are not insured or guaranteed by the federal government, which means the lender sets the underwriting rules, but they still follow widely accepted standards.

Conforming vs. Jumbo Conventional Loans

Conventional loans come in two size categories. A conforming loan stays within the loan‑limit set by the Federal Housing Finance Agency (FHFA). In New Hampshire the limit for 2024 is $726,200, though the figure is adjusted each year. Anything above that limit is called a jumbo conventional loan, and it typically requires a larger down payment and a higher credit score.

Key Requirements

Down payment: As low as 3% of the purchase price if you’re willing to pay private mortgage insurance (PMI). Many lenders prefer at least 5% to avoid PMI.
Credit score: Most conventional lenders look for a score of around 620 or higher. Scores above 740 usually qualify for the most competitive rates.
Debt‑to‑income ratio: Lenders often cap this at 43% of gross monthly income, though some may allow higher ratios with strong compensating factors.

New Hampshire‑Specific Considerations

New Hampshire does not levy a state income tax, which can make your overall tax picture simpler compared with many neighboring states.
Most home purchases are closed through a real‑estate attorney rather than a title company, so you’ll likely pay attorney fees at settlement.
The New Hampshire Housing Finance Authority offers a first‑time‑buyer program that can provide down‑payment assistance or favorable loan terms for eligible applicants.

Choosing between a conforming conventional loan and a jumbo conventional loan depends on the price of the home you want, how much you can put down, and your credit profile. A conforming loan usually offers lower rates and less paperwork, while a jumbo loan may be necessary for higher‑priced homes in the state’s more expensive market areas.

This article provides general information and is not personalized financial advice. You should consult a qualified mortgage professional to evaluate your specific situation.

FAQ

What is the main difference between a conforming and a jumbo conventional loan?

A conforming loan stays within the FHFA’s loan‑limit (e.g., $726,200 in NH for 2024). A jumbo loan exceeds that limit, often requiring a larger down payment, higher credit score, and may carry a slightly higher interest rate.

Can I get a conventional loan with no down payment in New Hampshire?

Conventional loans generally require at least a 3% down payment if you’re willing to pay private mortgage insurance. No‑down‑payment options are usually limited to government‑backed loans such as FHA or VA.

How does New Hampshire’s lack of state income tax affect my mortgage costs?

Because there’s no state income tax, you won’t have state‑level tax deductions related to mortgage interest. However, property taxes and federal tax deductions still apply, so the overall impact varies by individual circumstances.

Do I need a real‑estate attorney for closing a home purchase in New Hampshire?

Yes, most transactions in New Hampshire are closed through a real‑estate attorney who prepares and reviews the deed, settlement statement, and other legal documents. Their fees are typically paid at closing.

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