Louisiana Conventional Loans

Louisiana Conventional Loans

Conventional loans meet the guidelines of Fannie Mae and Freddie Mac. They aren’t insured by the government, but they still have flexible guidelines. Conventional loans also have great terms for homebuyers throughout Louisiana.

You may think that you need a large down payment or ‘perfect’ credit for conventional loans, but you don’t. We work with a large number of lenders, each with flexible requirements that differ from one another. Let us show you how you can get 15 and 30-year fixed mortgages in Louisiana.

Louisiana Conventional Loans Are Best For

Louisiana Conventional Loans are a great option for First Time Home Buyers and Repeat Home Buyers.  Conventional Loans require a credit score of 620 and down payments range from 3%-5% down. Conventional Loans can also be a great option for borrowers with a lot of student loan debt. 

Conventional Loan Down Payment Requirements

 

Many people mistakenly think they need a 20% down payment for conventional loans. While it’s a nice goal, it’s not required. We work with lenders that allow down payments as low as 3% – 5% of the sales price. This means you may be able to buy a home sooner than you thought.

 

If you qualify for a loan with a higher loan-to-value ratio than 80%, you’ll pay Private Mortgage Insurance or PMI. While PMI does increase your mortgage payment, it helps you secure a loan with a low down payment.

We’ll walk you through the process; explain how it affects your loan; and more importantly, when you can get rid of PMI. 

 

Qualifying for 15 and 30-year Fixed Mortgages in Louisiana

 

You may have heard that conventional loans have strict requirements. While they are a little tougher than government loans, such as FHA and VA loans, they are still flexible:

  • Minimum Credit Score of 620  (varies by lender)
  • Maximum 28% housing ratio
  • Maximum 36% total debt ratio
  • Stable income/employment for two years
  • No recent bankruptcies or foreclosures

We’ll walk you through each step to determine if you are eligible for a conventional loan. 

Louisiana Conventional Loan Properties

 

Conventional loans are available on just about any property type including single-family homes, townhomes, condos, and manufactured homes. Unlike the government-backed loans, you can use conventional loans on any of the following:

  • Primary home
  • Second-home
  • Vacation home
  • Investment home

Just keep in mind, if you have a mortgage on your primary residence, you’re debt-to-income ratio must align with the lender requirements using both mortgages.

The Difference Between the 15 and 30-Year Terms

 

Conventional loans offer the choice between loan terms. First-time homebuyers, for example, typically stick with the 30-year fixed mortgage in Louisiana. Spreading the payments out over 30 years makes the payment lower. It also makes it easier to meet the conventional loan debt-ratio requirements.

But, the 15-year fixed mortgage in Louisiana offers the chance to own your home in half the time. With a 15-year loan, you’ll enjoy lower interest rates. You’ll also build equity in the home faster since you’ll pay the principal down faster. 

Conventional loans are an option for many people that don’t even realize it. Let us help you understand how the loans work and see if you qualify. We have a variety of loan options available to help you find the loan for your dream home. We’ll help you choose between the 15-year fixed mortgage in Louisiana or the 30-year term.

How to Get a Conventional Loan In Louisiana

 

In order to get a conventional loan you need to make sure you meet all of the requirements. The best way to get started is to speak with a loan expert who can answer all of your questions. 

Talking to an expert will help you: 

  • Know what you qualify for 
  • See what your interest rate will be 
  • Find the right budget that fits your monthly payment 
  • Answer all of your home buying questions. 

If you are ready to get started just click get qualified below. 

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Why Work With Bayou Mortgage?

Worried you’ll pay too much for your home loan? 

We are too! If you don’t think you should have to sacrifice a good experience for a low rate we’re right there with you. 

Maybe your lender doesn’t respond or explain things. 

We’ve got your back from start to finish on this house and any others you may buy in the future. 

  • One Stop Shop

    We'll handle shopping multiple lenders for you. It can take weeks to search for the best rate with each lender alone. We'll do it in about 5 minutes.

  • Get Expert Advice

    You get a team of experts who only do home loans. You'll know exactly what you should do and when. Not sure which loan is right? We can help. Should you buy now or wait? We can help!

  • No Lender Fees

    We don't like paying fees and I bet you don't either! So you won't pay any lender fees when you work with us. Buying a home is expensive enough without adding in additional charges.

  • We Move Quickly!

    No one wants to lose the house they love because the bank can't close the loan on time. While many lender take 60-90 days to close loans we'll get them done in 30 days or less. We move at your speed.

  • Wholesale Rates

    You'll get access to hundreds of lenders and their wholesale rates. Lower rates = lower payments. Since we run with al lot less overhead than most banks we pass those savings to you

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See What You Qualify For

*We don’t sell or spam your information and you will only be contacted in the manner you choose. This info is for Bayou Mortgage Only