Choosing a mortgage for a new home in Louisiana might bit more straightforward than in other states.
Conforming mortgages and FHA mortgages have borrowing limits set by the Federal Housing Finance Agency and Federal Housing Administration. In some states, certain counties have higher borrowing limits, which could change the type of mortgage you’d pick.
Louisiana parishes (which are similar to counties) have pretty consistent borrowing limits for mortgages. As a result, you can compare potential new homes in two distinct parishes without factoring in borrowing limits as much.
Below you’ll find 2022 borrowing limits for a single-family home in Louisiana, put together using data from the Federal Housing Finance Agency and the US Department of Housing and Urban Development.
Louisiana borrowing limits in 2022 by parishes
How to determine which mortgage is right for you
You may want to consider an FHA mortgage if you don’t think you’ll meet the requirements for a conforming mortgage. An FHA mortgage is a government-backed loan with more lenient eligibility requirements than conforming loans. You can typically have a lower credit score or higher debt-to-income ratio with an FHA mortgage.
Conforming mortgages are usually what most people think of as a standard mortgage. A conforming mortgage may be a good choice if you plan on getting a home that costs more than the FHA borrowing limit in your county.
If you want to buy a more expensive home and think you’ll need a loan greater than $647,200, jumbo loans let you borrow more money than the conforming mortgage limit. If you’re planning to get a jumbo loan, you’ll need a high credit score and low debt-to-income ratio to qualify.