What are Conventional Loans and Conforming Loans?

By definition, a Conventional Loan is any mortgage that’s not guaranteed or insured by the federal government. Louisiana conventional loans may be either “conforming” and “non-conforming”, although ‘conventional loans’ generally refer to ‘conforming loans’. Therefore Louisiana conventional loan limits are the same thing as Louisiana conforming loan limits.

Louisiana Conventional Loan Limits

What is the maximum amount that I can borrow?

Conventional loan limits in Louisiana are determined by:

  • Louisiana Conventional Loan LimitsMaximum LTV Ratio:  The maximum financing loan-to-value ratio for conventional mortgages is 80% – 97% of the appraised value of the home or its selling price, whichever is lower. Learn how to calculate loan-to-value.
  • Maximum Loan Amount: Conventional loan limits in Louisiana are set at the floor amount of $424,100 across the entire state. Metro areas in LA with a conforming limit of $424,100 include New Orleans, Baton Rouge, Shreveport and Lake Charles.

Search all Conventional Loan Limits in Louisiana:

County Name
ACADIALAFAYETTE, LA$510,400$653,550$789,950$981,700
ASCENSIONBATON ROUGE, LA$510,400$653,550$789,950$981,700
ASSUMPTIONBATON ROUGE, LA$510,400$653,550$789,950$981,700
BEAUREGARDDERIDDER, LA$510,400$653,550$789,950$981,700
BOSSIERSHREVEPORT-BOSSIER CITY, LA$510,400$653,550$789,950$981,700
CADDOSHREVEPORT-BOSSIER CITY, LA$510,400$653,550$789,950$981,700
CALCASIEULAKE CHARLES, LA$510,400$653,550$789,950$981,700
CAMERONLAKE CHARLES, LA$510,400$653,550$789,950$981,700
CONCORDIANATCHEZ, MS-LA$510,400$653,550$789,950$981,700
DE SOTOSHREVEPORT-BOSSIER CITY, LA$510,400$653,550$789,950$981,700
EAST BATON ROUGBATON ROUGE, LA$510,400$653,550$789,950$981,700
EAST CARROLLNON-METRO$510,400$653,550$789,950$981,700
EAST FELICIANABATON ROUGE, LA$510,400$653,550$789,950$981,700
GRANTALEXANDRIA, LA$510,400$653,550$789,950$981,700
IBERIALAFAYETTE, LA$510,400$653,550$789,950$981,700
IBERVILLEBATON ROUGE, LA$510,400$653,550$789,950$981,700
JEFFERSONNEW ORLEANS-METAIRIE, LA$510,400$653,550$789,950$981,700
JEFFERSON DAVISJENNINGS, LA$510,400$653,550$789,950$981,700
LAFAYETTELAFAYETTE, LA$510,400$653,550$789,950$981,700
LAFOURCHEHOUMA-THIBODAUX, LA$510,400$653,550$789,950$981,700
LINCOLNRUSTON, LA$510,400$653,550$789,950$981,700
LIVINGSTONBATON ROUGE, LA$510,400$653,550$789,950$981,700
MOREHOUSEMONROE, LA$510,400$653,550$789,950$981,700
NATCHITOCHESNATCHITOCHES, LA$510,400$653,550$789,950$981,700
ORLEANSNEW ORLEANS-METAIRIE, LA$510,400$653,550$789,950$981,700
OUACHITAMONROE, LA$510,400$653,550$789,950$981,700
PLAQUEMINESNEW ORLEANS-METAIRIE, LA$510,400$653,550$789,950$981,700
POINTE COUPEEBATON ROUGE, LA$510,400$653,550$789,950$981,700
RAPIDESALEXANDRIA, LA$510,400$653,550$789,950$981,700
RED RIVERNON-METRO$510,400$653,550$789,950$981,700
ST. BERNARDNEW ORLEANS-METAIRIE, LA$510,400$653,550$789,950$981,700
ST. CHARLESNEW ORLEANS-METAIRIE, LA$510,400$653,550$789,950$981,700
ST. HELENABATON ROUGE, LA$510,400$653,550$789,950$981,700
ST. JAMESNEW ORLEANS-METAIRIE, LA$510,400$653,550$789,950$981,700
ST. JOHN THE BANEW ORLEANS-METAIRIE, LA$510,400$653,550$789,950$981,700
ST. LANDRYOPELOUSAS, LA$510,400$653,550$789,950$981,700
ST. MARTINLAFAYETTE, LA$510,400$653,550$789,950$981,700
ST. MARYMORGAN CITY, LA$510,400$653,550$789,950$981,700
ST. TAMMANYNEW ORLEANS-METAIRIE, LA$510,400$653,550$789,950$981,700
TANGIPAHOAHAMMOND, LA$510,400$653,550$789,950$981,700
TERREBONNEHOUMA-THIBODAUX, LA$510,400$653,550$789,950$981,700
UNIONMONROE, LA$510,400$653,550$789,950$981,700
VERMILIONLAFAYETTE, LA$510,400$653,550$789,950$981,700
VERNONFORT POLK SOUTH, LA$510,400$653,550$789,950$981,700
WASHINGTONBOGALUSA, LA$510,400$653,550$789,950$981,700
WEBSTERMINDEN, LA$510,400$653,550$789,950$981,700
WEST BATON ROUGBATON ROUGE, LA$510,400$653,550$789,950$981,700
WEST CARROLLNON-METRO$510,400$653,550$789,950$981,700
WEST FELICIANABATON ROUGE, LA$510,400$653,550$789,950$981,700

Louisiana conforming limits can change anytime. Check back often to ensure accuracy.

What factors determine if i’m eligible for a Conventional Loan in Louisiana?

Conventional conforming loans follow the terms and conditions set forth by government sponsored enterprises (GSE’s) like Fannie Mae or Freddie Mac. To be eligible for a Conforming Loan in Louisiana, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. A FICO credit score of 620 or above is generally required to obtain a conventional loan approval. You must also have enough income to pay your housing costs plus all additional monthly debt.

How much money will I need for the down payment and closing costs?

Conventional home loans require the home buyer to invest between 3% and 20% of the sales price towards the down payment and closing costs. If the sales price is $100,000 for example, the mortgage applicant must invest at least $3,000 – $20,000 to meet conventional mortgage down payment requirements, depending on the program.

Minimum Louisiana Conventional Loan Down Payment:

Residence UsageFixed-Rate Mortgage (FRM)Adjustable-Rate Mortgage (ARM)
1 Unit Primary3% Down Payment10% Down Payment
2 Units Primary15% Down Payment25% Down Payment
3 Units Primary25% Down Payment35% Down Payment
4 Units Primary25% Down Payment35% Down Payment
1 Unit Second Home10% Down Payment20% Down Payment
1 Unit Investment15% Down Payment25% Down Payment
2 Units Investment25% Down Payment35% Down Payment
3 Units Investment25% Down Payment35% Down Payment
4 Units Investment25% Down Payment35% Down Payment

What property types are allowed for Conventional Conforming Mortgages?

LA Conventional Loan RequirementsConventional mortgage guidelines allow you to purchase warrantable condos, planned unit developments, modular homes, manufactured homes, and 1-4 family residences. Conventional loans can be used to finance primary residences, second homes and investment property.

Learn more about conventional mortgages.

What types of mortgage and refinance programs do Conventional Loans offer in Louisiana?

There are several varieties of standard home purchase, first-time home buyer and conventional refinance loans available in Louisiana:

  • Conventional Purchase Loans – Conventional loans offer a variety of programs for applicants with good credit ratings to buy a home. Both 3% down mortgage and 5% down mortgage options are available, however 20% down is the minimum amount required to avoid private mortgage insurance.
  • Conventional Rate/Term Refinance: Conventional Rate/Term refinancing loans are for borrowers who currently have an FHA, VA, USDA or conventional fixed rate mortgage or ARM loan and wish to refinance into a conventional mortgage with a lower interest rate. If you’re a homeowners considering a stable, conventional fixed-rate mortgage, this program may also eliminate your mortgage insurance if you have at 20% equity in your home.  If not, Conventional 97% loan programs may also work for you.
  • Cash-Out Refinance: A Conventional Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.

What factors determine if I am eligible for a Conventional Refinance Loan?

To meet conventional refinance mortgage requirements in Louisiana, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. You must be able to cover closing costs and have enough income to pay your monthly debt.

Conventional Loan Requirements

More Louisiana Mortgage Limits

You may also want to visit these additional home loan resources before deciding on a mortgage program:

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Refinance     Purchase

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