Table of Contents
First Time Home Buyer Grants Louisiana
In this article you will discover first time home buyer grants louisiana information and resources to make your home search easier.
Whether you’re looking for a house in New Orleans or along the state’s coastal plains, Louisiana has a lot to offer, from Cajun food and jazz to rising industries such as aerospace, agriculture, and manufacturing.
If you’re a first-time homebuyer in the state, consider contacting the Louisiana Housing Corporation, which is dedicated to ensuring that individuals, especially first-time buyers, have access to affordable housing and mortgages.
Louisiana first-time homebuyer loan programs
LHC Mortgage Revenue Bond programs
The Louisiana Housing Corporation’s (LHC) Mortgage Revenue Bond programs assist first-time homebuyers, defined as people who have not owned a house in the preceding three years, with financing as well as down payment and closing cost assistance. There are two programs available:
➣ Mortgage Revenue Bonds for Homeowners: Includes a 5%–9% grant with no interest or payback
➣ Mortgage Revenue Bond Assistance: Includes a 4% interest-free, no-payment second mortgage that is forgiven after three years.
Both programs require a credit score of at least 640 and completion of a homebuyer education course.
Additionally, the home you are purchasing must be located in Louisiana, must be your primary residence, and must not cost more than $271,164. (other limits might apply depending on location).
The home may be a single-family dwelling, a condominium, a townhome, a modular home, or a prefabricated home (which may be a double-wide if the loan is guaranteed by the Federal Housing Administration).
To qualify for the Mortgage Revenue Bond Home program, your income must be equal to or less than 80% of the area median income (AMI).
Your income can be between 115 percent and 140 percent of the AMI for the Assisted program, depending on the loan type, household size, and if the home you’re purchasing is in a targeted area.
LHC Market Rate Conventional Program
LHC’s Market Rate Conventional Program is offered to first-time and repeat homebuyers within the 80 percent AMI guidelines.
It features a competitive 30-year fixed rate and lower mortgage insurance. Additionally, the loan can be combined with up to 4% down payment aid.
To qualify as a first-time buyer, you must finish a homebuyer education course.
All buyers must have a minimum credit score of 640 and a loan maximum of $453,100.
The loan may be used exclusively to acquire a single-family principal residence.
LHC Market Rate GNMA Program
LHC’s Market Rate GNMA Program is also available to first-time and return homeowners.
It combines a competitive 30-year fixed-rate FHA, VA, or USDA loan with up to 4% down payment assistance.
With this program, your salary can be up to 115 percent of the area median income, but a minimum credit score of 640 is also required (although that can vary according to loan product).
LHC Delta 100 Program
The LHC’s Delta 100 Program is a parish-specific initiative that assists credit-challenged first-time homebuyers in obtaining complete financing with a 2% interest rate and no mortgage insurance, as well as up to 3% aid with down payment and closing costs.
While there is no minimum credit score requirement, the program is only available for single-family house purchases located in one of the following parishes:
Caldwell
Catahoula
Concordia
East Carroll
Franklin
Madison
Morehouse
Pointe Coupee
Richland
Tensas
West Carroll
Ouachita (excluding Monroe)
Additionally, the home cannot exceed $242,000 in value, and your income cannot exceed 80 percent of the area median income.
Additionally, you must be able to donate either 1% of the purchase price or $1,500 from your own finances to qualify.
Louisiana down payment assistance
LHC Resilience Soft Second Program
The LHC’s Resilience Soft Second Program was established to assist Louisiana’s 51 parishes that were damaged by the 2016 floods.
The program provides first-time homeowners with a second mortgage equal to 20% of the purchase price of the home, up to $55,000, plus up to $5,000 in closing fees.
If you live in the home for ten years as your primary residence, the second mortgage is completely forgiven.
Borrower requirements:
➣ Must be a first-time homeowner (or have not bought a house in the last three years); a single parent who has only owned a home with a former spouse while married; or a displaced homemaker who has only owned a home with a spouse.
➣ Maximum debt-to-income (DTI) ratio of 48 percent
➣ Must successfully complete a course on homebuyer education.
➣ 640 minimum credit score
➣ Must adhere to LHC income guidelines (be at or below 80 percent of AMI)
Property requirements:
➣ It must be a single-family residence, condominium, or townhome.
➣ Must reside in one of Louisiana’s 51 participating parishes.
➣ Must not be located within a flood zone
➣ The property must be used as a principal dwelling.
➣ Must be less than $314,827
New Orleans Direct Soft Second Mortgage Assistance Program
The New Orleans Office of Community Development offers up to $55,000 in down payment help in the form of a second mortgage and another $5,000 in closing cost assistance to first-time homebuyers in Orleans Parish.
This interest-free, no-payment second mortgage is forgiven after ten years if you continue to live in the home as your primary residence.
To be eligible, your income must fall within the 80% AMI limits. Additionally, you must qualify for a first mortgage from an approved lender and complete a 12-hour housing counseling program with a HUD-certified housing counseling firm.
Other lending options for first-time homebuyers
While you’re examining your first-time homebuyer options in Louisiana, don’t forget to look into national programs that may help you achieve your homeownership goal as well.
First Time Home Buyer Grants Louisiana Bottom Line
You’re ready to make a purchase now that you’re aware of your possibilities as a first-time homebuyer in Louisiana.
While the Louisiana Housing Corporation does not issue loans or financing decisions, the agency does provide a database of mortgage lenders to assist you in initiating the process and determining if you qualify for any assistance.
Whichever program you choose, it’s critical to look around for the best mortgage rates and loan offers to ensure you’re getting the best deal possible.
Finance World Direct > Archived > Mortgages
[wp-stealth-ads rows=”2″ mobile-rows=”2″]