FHA Loans in Shreveport & Bossier City
Low down payment, flexible credit guidelines, and a path to homeownership for many first-time and repeat buyers in Louisiana.
What FHA Loans Are
FHA loans are insured by the Federal Housing Administration (FHA), part of HUD. They're designed to help buyers who might not qualify for conventional financing — with a minimum down payment of 3.5% and more flexible credit and debt-to-income guidelines. In Shreveport, Bossier City, and across Louisiana, FHA is popular with first-time homebuyers and those rebuilding credit. The tradeoff is mortgage insurance (MIP) that typically lasts for the life of the loan. For an overview of all programs we offer, see our loan options page. If you're new to buying, our first-time homebuyer in Louisiana guide walks through down payment and program choices.
Down Payment Options
FHA allows as little as 3.5% down for borrowers with a credit score of 580 or higher (some lenders may accept 500–579 with 10% down). Down payment can come from savings, gifts from family, or approved down payment assistance programs. That makes FHA one of the most accessible options for buyers who don't have a large amount saved. We'll show you how your down payment affects your loan amount, monthly payment, and mortgage insurance so you can plan accordingly.
Mortgage Insurance (MIP)
FHA charges an upfront mortgage insurance premium (UFMIP) — typically 1.75% of the loan amount — plus an annual MIP paid in monthly installments. For most loans with less than 10% down, MIP runs for the life of the loan; for 10% or more down, it can be removed after 11 years. That's different from conventional PMI, which can be removed once you reach 80% loan-to-value. We'll factor MIP into your payment estimate so you see the full picture. Estimate your FHA payment with our calculator.
Credit Requirements
FHA is more forgiving on credit than conventional. The FHA allows lenders to approve borrowers with scores as low as 500 (with 10% down) or 580 for 3.5% down; in practice, many lenders set their own minimums in the 580–620 range. We'll review your credit, debt ratios, and employment to see if FHA is a fit and what rate and terms you can expect. If you have stronger credit and more down payment, conventional loans might offer lower long-term cost — we'll compare both.
Loan Limits
FHA sets maximum loan amounts by county. In Caddo and Bossier parishes (Shreveport and Bossier City), FHA limits are set each year and are generally in line with the area's median home prices. We'll confirm the current limit for your county and property type so you know the maximum FHA loan amount you can use. If your purchase price exceeds FHA limits, we can discuss conventional or other options.
FHA vs Conventional
FHA wins when you have lower credit, need a small down payment (3.5%), or have a higher debt-to-income ratio — but you'll pay MIP for years. Conventional often wins when you have good credit (620+) and can put 10–20% down, since you can avoid PMI or remove it once you hit 80% LTV. We'll run both scenarios for you. For a full comparison, see Conventional loans in Shreveport and Bossier City.
First-time buyer? Read our first-time homebuyer guide. Ready to compare programs? Schedule a consultation and we'll find the best fit.
Ready to Explore FHA?
Kara can walk you through FHA vs conventional and find the best fit for your situation in Shreveport or Bossier City.
30 minutes. In person, by phone, or on Zoom. No obligation.