🏠 Qualifying for a Mortgage in Baton Rouge Just Got Easier — Here's How to Do It (With as Little as 1% Down)

Everything you need to know about mortgage approval, down payments, and new programs for Louisiana homebuyers
By Trace David | Loan Officer, NMLS #2571377 | 1st Phase Mortgage powered by NEXA

Why Mortgage Qualification Doesn’t Have to Be Complicated

Most homebuyers think getting approved for a mortgage means having perfect credit and saving up tens of thousands for a down payment. That couldn’t be further from the truth.

The Baton Rouge market is full of opportunity right now — and if you understand how lenders evaluate your financial picture, you’ll see there are more paths to homeownership than ever before.

Especially with our brand-new 1% down conventional loan, which is changing the game for qualified borrowers.

🧠 Step 1: Understand What Lenders Look For

Here are the four big factors lenders use to determine whether you’re mortgage-ready:

1. Credit Score

• Conventional loans (including 1% down): Minimum 620+

• FHA loans: 580+ (500 with 10% down)

• VA/USDA loans: Flexible, ideally 600+

• Best rates: 740+

📍 Tip from Trace: “Even a small credit boost can lower your interest rate. I offer a soft credit pull option so we can review your profile without impacting your score.”

2. Debt-to-Income Ratio (DTI)

This is the percentage of your gross monthly income that goes toward debts, including your future mortgage.

• Most programs target DTI under 43%

• Some allow up to 55% with strong compensating factors

🧮 Example: With $5,000 in monthly income, your total debts (including your mortgage payment) should stay under $2,150.

3. Income & Employment Verification

Be prepared to provide:

• W-2s or 2 years of tax returns (if self-employed)

• Most recent 30 days of pay stubs

• Bank statements for the last 2 months

🎯 Pro tip: If you’re newly self-employed or have variable income, I’ll help you package your file to show stable income and strength.

4. Down Payment Funds

This is where most buyers get stuck — but don’t worry, you have options.

💰 Down Payment Options — Including 1% Down

Let’s break down the most popular programs and what they require:

✅ NEW! 1% Down Conventional Loan

• Just 1% down from the borrower

• Lender contributes an additional 2% (giving you 3% equity at closing)

• 620+ credit score required

• Must meet income & property guidelines

• Great for: Moderate-income first time buyers who don’t want to use all their savings

✅ FHA Loan

• 3.5% down required

• Flexible credit requirements

• Allows higher DTI ratios

• Great for: First-time buyers with lower credit

✅ VA Loan

• $0 down for eligible veterans, surviving spouses, and active-duty military

• No PMI

• Competitive interest rates

• Great for: Veterans, service members, surviving spouses

✅ USDA Loan

• $0 down in eligible rural/suburban areas (includes parts of Ascension & Livingston)

• Income and location restrictions apply

• Great for: Buyers looking outside central Baton Rouge

🎓 Baton Rouge Buyers — Don’t Miss Out on Local Assistance

Louisiana Housing Corporation (LHC) Programs

• Offers down payment assistance (DPA) up to several thousand dollars

• Can be used with FHA, USDA, VA, or conventional loans

• Often forgivable after 3–5 years

• Programs include:

  • Market Rate GNMA/Conventional

  • MRB Assisted

  • Mortgage Credit Certificates (MCCs)

🎯 Bonus: Teachers, first responders, and healthcare workers may qualify for special DPA incentives.

💼 What You Need to Get Pre-Approved

1. Two months of bank statements

2. Two years of tax returns or W-2s

3. One month of pay stubs

4. ID & SSN

5. Optional: Authorization for a soft credit pull to evaluate your eligibility without affecting your score

🏁 Ready to Make a Move in Baton Rouge?

Whether you're buying for the first time or just exploring your options, I’ll walk you through every step. From understanding the numbers to choosing the right loan product — including our 1% down option — you’ll be equipped to make confident decisions.

📞 Let’s Talk!

I’m Trace David, Loan Officer at 1st Phase Mortgage powered by NEXA. I help homebuyers across Baton Rouge, Livingston, Ascension, and all of Louisiana get into the right mortgage — without the stress.

📲 Call or text: (225) 321-3777
📧 Email: [email protected]
🌐 Apply online: www.tracedavidmortgage.com
🏢 NMLS #2571377

PS: If any of your friends, family members, or coworkers are looking to buy, sell, or refinance — can I count on you to put us on a group text? I’d love the chance to help them, too.