Conventional Loans in Shreveport & Bossier City
Flexible terms, competitive rates, and options from 3% down. Not government-backed — conventional loans follow Fannie Mae and Freddie Mac guidelines.
What Conventional Loans Are
Conventional loans are not insured or guaranteed by the federal government (unlike FHA, VA, or USDA). They follow guidelines set by Fannie Mae and Freddie Mac — the government-sponsored enterprises that buy most conforming mortgages. In Shreveport, Bossier City, and across Louisiana, conventional loans are the most common choice for buyers with solid credit and some down payment flexibility. They offer a range of terms (fixed and adjustable), competitive rates, and the ability to avoid monthly mortgage insurance when you put 20% or more down. For an overview of all loan options we offer, see our services page.
Down Payment Options
You don't always need 20% down. Many conventional programs allow as low as 3% down for qualified first-time and repeat buyers. Down payment requirements can vary by loan size, occupancy (primary vs investment), and lender. Putting more down can improve your rate and eliminate PMI sooner; putting less down gets you into a home with less cash at closing. We'll run the numbers so you see how different down payment levels affect your payment and whether you'll need PMI. If you're a first-time buyer, see our first-time homebuyer in Louisiana guide for down payment and program options.
PMI Explained
Private mortgage insurance (PMI) protects the lender when you put less than 20% down on a conventional loan. You pay a monthly premium until your loan-to-value ratio drops below 80% (through paydown or appreciation). PMI can be removed once you reach that threshold — unlike FHA's mortgage insurance, which often stays for the life of the loan. Some borrowers choose to put 20% down to avoid PMI entirely; others prefer a smaller down payment and accept PMI to preserve savings. We'll show you the cost of PMI for your scenario and how it fits into your total monthly payment. Estimate your conventional payment with our calculator.
Credit Requirements
Conventional loans typically require a higher credit score than FHA — often 620 or above for most programs, with better rates and terms at 680+. Lenders also look at debt-to-income ratio, employment history, and reserves. If your credit is on the border, we can discuss whether conventional is the right fit or if FHA might offer more flexibility. We'll pull your credit (with your permission), review your profile, and give you a clear path. For buyers comparing programs, see FHA loans in Shreveport and Bossier City.
Loan Limits
Conventional conforming loans must stay within limits set by the FHFA. For 2026, the baseline conforming limit for a one-unit property is $832,750 in most of Louisiana, including Shreveport and Bossier City. Loans above that are considered jumbo and may have different guidelines and rates. We'll help you determine whether your purchase price fits conforming limits and what that means for your rate and terms.
Conventional vs FHA
Conventional loans usually have stricter credit requirements but can offer lower long-term cost when you have good credit and can put 10–20% down — no PMI once you hit 80% LTV. FHA loans allow lower credit scores and 3.5% down, but mortgage insurance (MIP) typically runs for the life of the loan. For many first-time buyers or those with limited credit history, FHA is a better fit; for others, conventional wins. We'll compare both side by side for your situation. Read more: FHA loans in Shreveport and Bossier City.
Not sure if conventional or FHA is right for you? See all loan options or schedule a consultation to compare programs and get a clear recommendation.
Ready to Explore Conventional?
Kara can help you compare conventional to FHA and VA and find the right loan for Shreveport or Bossier City.
30 minutes. In person, by phone, or on Zoom. No obligation.