Conventional loans offer Louisiana buyers the widest range of flexibility — from 3% down for first-time buyers to 15-year terms that build equity faster. With no upfront mortgage insurance premium and the ability to drop PMI at 20% equity, conventional financing is the benchmark against which every other program is measured.
Conventional loans offer Louisiana buyers the widest range of flexibility — from 3% down for first-time buyers to 15-year terms that build equity faster. With no upfront mortgage insurance premium and... Check your eligibility →
First-time buyers can put down as little as 3% with Fannie Mae HomeReady or Freddie Mac Home Possible programs. Louisiana buyers with stronger credit profiles benefit from the most competitive rates in the market.
Unlike FHA loans where mortgage insurance stays for the life of the loan (with less than 10% down), conventional PMI automatically cancels once you reach 20% equity. This can save Louisiana homeowners $100–$200 per month long-term.
Borrowers with 740+ credit scores typically receive the best conventional rates available. Even at 680–739, conventional rates are often comparable to or better than FHA once you factor in the lower mortgage insurance cost.
Conventional loans work for single-family homes, condos, townhomes, and multi-unit properties (2–4 units). In Louisiana, this flexibility matters for buyers eyeing duplexes in New Orleans or condos in Baton Rouge.
FHA charges a 1.75% upfront mortgage insurance premium. Conventional loans have no equivalent. On a $250,000 Louisiana purchase, that is $4,375 you do not pay upfront.
The Fannie Mae HomeStyle renovation loan lets you finance purchase and renovation into a single conventional loan — useful for Louisiana's older housing stock that may need updates.
These are average market rates — not a quote. Your actual rate depends on your credit score, down payment, and loan details. Get a personalized rate →
Average market rates based on mortgage market index data. Not a commitment to lend.
A conventional loan is any mortgage that is not backed by a government agency like FHA, VA, or USDA. Most conventional loans conform to guidelines set by Fannie Mae and Freddie Mac, which allows lenders to sell the loans on the secondary market and offer competitive terms. Conventional financing is the most common mortgage type nationwide and the benchmark for Louisiana buyers with solid credit and stable income.
For Louisiana purchasers, conventional loans are the best choice when your credit score is above 680, you have at least 5% down (ideally more), and you want the long-term savings of cancelable mortgage insurance. If you are putting 20% down, conventional eliminates PMI entirely — making it the most cost-efficient structure for well-qualified borrowers buying across any of the state's 64 parishes.
| Loan Type | Down Payment | Min. Credit* |
|---|---|---|
| Conventional | 3–20% | ~620+ |
| FHA | 3.5% | 500–580+ |
| VA | 0% | ~580+* |
| USDA | 0% | ~640+ |
| DSCR | 15–25% | ~660+ |
We'll run the numbers on FHA, VA, Conventional, USDA, and more based on your credit score, income, and the type of home you're buying — anywhere in Louisiana.
Get a Free Loan Comparison →We keep it simple: understand your numbers, get a clean pre-approval, then guide you through appraisal and closing — anywhere in Louisiana.
We review your credit, income, and savings to determine whether conventional is your best fit — or if FHA, VA, or USDA might save you more. We compare all options side by side for your specific situation.
Get Started →We collect documentation, lock your rate when the time is right, and issue a clean pre-approval letter that gives you negotiating power with Louisiana sellers.
Get Started →From appraisal to closing, we manage every deadline and keep you informed. Most conventional purchases in Louisiana close in 25–35 days.
Get Started →Down payment options, PMI rules, rate factors, and how to determine whether conventional is the right fit for your Louisiana purchase.
Real feedback from real buyers who worked with Bayou Mortgage across Louisiana. Read through, then reach out when you're ready for a clear plan. See all Google Reviews.
Louisiana buyers with good credit and savings get the best terms with conventional financing. See your options in minutes.
The most common questions Louisiana buyers ask about conventional loans — down payment, PMI, credit requirements, and how it compares to FHA.
Bayou Mortgage originates conventional loans in every parish across the state of Louisiana. Licensed in Louisiana · NMLS #1845349
Conventional is not always the best fit. Depending on your profile, FHA, VA, or USDA may save you more. We compare all options.
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