Conventional Loans in Baton Rouge
Conventional Loans allow Baton Rouge residents to purchase a primary, second or even investment property.
Conventional Loans for Baton Rouge, LA
Conventional Loans are one of the most popular loan programs in Baton Rouge, Zachary, Brusly, Central, Prairieville, Gonzales, Denham Springs, and Livingston. The Conventional Mortgage program is a loan option for borrowers with good credit and a solid down payment.
What is a Conventional or Conforming Loan?
A conventional or conforming loan is one that conforms to the standards set forth by Fannie Mae or Freddie Mac. These loans are done by banks, credit unions, mortgage brokers or mortgage bankers.
Conventional loans are not insured or backed by any government agency and instead are protected by private mortgage insurance or 20% or more down payments.
Baton Rouge Conventional Loan Requirements
In order to get a conventional loan, you’ll need to meet a few different requirements.
- Credit Score of 620 or Higher
- 3% Down Payment for First-Time Homebuyers
- 5% Minimum Down Payment for Repeat Homebuyers
- Have a good credit history
- Purchase a Primary, Second Home, or Investment Property
- Have a Debt-to-Income Ratio under 50%
- Have Documented Taxable Income
The conventional loan is a program designed for people who have a positive credit history. While the minimum credit score requirement is 620, it can be difficult to qualify for a conventional loan if your score is under 680- especially if you don’t have a large down payment.
Benefits of Conventional Loan in Baton Rouge
The conventional loan has many benefits for those who are able to qualify for the program:
- Low Mortgage Rates
- Low Down Payment Requirements
- PMI is Removed at 80% Loan-to-Vale
- Purchase Primary, Second Home, or Investment Property
- Flexible Appraisals
The Conventional Mortgage is going to be more flexible when it comes to property types and occupancy types. Plus if you want to buy a home with some minor issues, conventional would be a better option.
Baton Rouge Conventional Loan Limits
The loan limits for Conventional Loans is the amount you can borrow and still be considered a conforming or non-jumbo loan. Non-conforming and Jumbo mortgages usually have stricter requirements, higher interest rates, and are tougher to obtain.
The Conventional Loan Limits Are:
1 Unit: $ 647,200
2 Unit: $828,700
3 Unit: $1,001,650
How to Apply for a Conventional Loan in Baton Rouge
If you’d like to apply for a conventional loan in Baton Rouge, you should speak with a local mortgage broker. Local mortgage brokers will help you shop with multiple lenders finding you the lowest rate and fees.
By shopping locally, you ensure you have someone who understands the area and will be available to assist you with your loan.
Talk to one of our loan experts today! We’ll give the lowest rate and we charge no lender fees!
Baton Rouge Mortgage Programs
If you’re shopping for mortgage companies in Baton Rouge, chances are you want to learn about which loan program is right for you.
Check out each loan program below to see what your options are.
An adjustable rate mortgage is a home loan with an inital rate that’s fixed for a specified period then adjusts.
A FHA mortgage is a home loan insurance by the Federal Housing Administration. FHA Loans offer low down payment and flexible credit requirements
VA Mortgage are backed by the Department of Veterans Affairs and are available to military members and veterans.
USDA Rural Development Mortgage is a home loan back by the United States Department of Agriculture and offers loans with no down payment requirement.