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Conventional Loan

Area Home Lending and our experts work with Conventional Mortgage Loans in Baton Rouge and know they are mortgage loans offered by non-government sponsored lenders. These home loan types include Fixed rate, adjustable rate, hybrid, and Jumbo Loans.

Some types of mortgages are backed or guaranteed by a government agency such as Veteran Affairs (VA) loans. While conventional loans in Baton Rouge are not insured by any government agency, these loans do adhere to specific guidelines, including maximum loan amounts, minimum credit scores, and debt-to-income ratios.

Conventional loans exist for homebuyers or homeowners in Baton Rouge who may not be able to obtain approval under non-conventional mortgage guidelines, so once you have met all of the requirements for a conventional loan, you then get a "head start" over other buyers with lesser qualifications. The down payment requirement ranges from 3% or more depending on qualifications, so you already have equity (the portion of the home that you own outright) in the home at the time you sign the documents for the loan. This equity helps you if you need to sell during down turns in the housing market.

If you owe more on a house than it is worth, you could end up trapped in a house you do not want or cannot afford. This may put your home in foreclosure. This means that conventional loans can also been seen as less risky because you have a higher vested interest in the property. In return, conventional mortgages tend to have lower interest rates than unconventional mortgages.


Area Home Lending 1737 Oakdale Dr Baton Rouge, LA 70809 (225) 663-2500
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