Table of Contents
Resources and information for first time home buyer Louisiana home buying programs.
Whether you’re searching for a house near 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.
Consider starting with the Louisiana Homes Corporation if you are a first-time homebuyer in the state.
This organization ensures 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 Mortgage Revenue Bond programs of the Louisiana Housing Corporation (LHC) provide financing and down payment and closing cost assistance to first-time homebuyers who have not owned a house within the past three years. There are two applications:
Mortgage Revenue Bond Home: Includes a 5% to 9% grant with no interest or principal payback.
Mortgage Revenue Bond Assistance: Includes a no-interest, no-payment second mortgage with a 4 percent rate that is forgiven after three years.
For both programs, a minimum credit score of 640 is required, as is completion of a homebuyer education course.
Additionally, the home you purchase must be in Louisiana, must be your primary residence, and cannot cost more than $271,164. (other limits might apply depending on location).
Single-family homes, condominiums, townhomes, modular homes, and manufactured homes (which can be double-wides if you’re seeking an FHA loan) are all acceptable types of residences.
To qualify for the Mortgage Revenue Bond Home program, your income must be 80 percent or less of the area’s median income (AMI).
Your income for the Assisted program can be between 115 and 140 percent of the AMI, depending on loan type, household size, and whether or not the home you are purchasing is in a targeted region.
LHC Conventional Market Rate Program
The LHC Market Rate Conventional Program is offered to both first-time and repeat homebuyers under the AMI restrictions of 80 percent, and it features a competitive 30-year fixed rate and lower mortgage insurance.
The loan may also be combined with up to four percent in down payment assistance.
To qualify as a first-time buyer, you must finish a homebuyer education course.
The minimum credit score needed for all buyers is 640, and the maximum loan amount is $453,100. This loan may only be used to acquire a single-family principal dwelling.
LHC Market Rate GNMA Program
LHC’s Market Rate GNMA Program is available to both first-time and repeat homeowners and offers a competitive 30-year fixed-rate FHA, VA, or USDA loan in addition to up to 4 percent in down payment assistance.
This program allows incomes up to 115 percent of the AMI, but also requires a minimum credit score of 640. (Although that can vary according to loan product).
LHC Delta 100 Program
The LHC Delta 100 Program is a parish-specific program that assists credit-challenged first-time homeowners achieve full financing with a 2% interest rate and no mortgage insurance, in addition to up to 3% in down payment and closing fee assistance.
There is no minimum credit score requirement for eligibility, but the program is only accessible for the purchase of single-family homes in the following parishes:
Caldwell
Catahoula
Concordia
East Carroll
Franklin
Madison
Morehouse
Pointe Coupee
Richland
Tensas
West Carroll
Ouachita (excluding Monroe)
In addition, the home’s value cannot exceed $242,000, and your income cannot exceed the 80 percent AMI limit.
To qualify, you must be able to contribute either 1% of the purchase price or $1,500, whichever is less, from your own finances.
Louisiana Down Payment Assistance
LHC Resilience Soft Second Program
The Resilience Soft Second Program was designed for the 51 Louisiana parishes affected by the 2016 floods.
The program provides first-time homeowners with a second mortgage equal to 20% of the home’s purchase price, up to $55,000, plus up to $5,000 for closing costs.
If you live in the home as your primary residence for ten years, the second mortgage will be completely forgiven.
Borrower requirements:
➣ Must be a first-time homeowner (or haven’t bought a house in the prior 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 while they were married.
➣ Minimum credit score of 640
➣ Maximum debt-to-income (DTI) ratio of 48 percent
Required completion of a homebuyer education course
➣ Must satisfy LHC income guidelines (be at or below 80 percent of AMI)
Property requirements:
➣ Must be a detached home, condominium, or townhouse
➣ Must reside in one of Louisiana’s 51 participating parishes
➣ Cannot be located in a flood zone
➣ Primary residency required
➣ Cannot surpass $314,827
Direct Soft Second Mortgage Assistance Program in New Orleans
This program, administered by the New Orleans Office of Community Development, provides up to $55,000 for a down payment in the form of a second mortgage and an additional $5,000 in closing cost assistance to first-time homebuyers of a single-family house in the Orleans Parish.
This no-interest, no-payment second mortgage is forgiven after 10 years if you continue to occupy the home as your principal residence.
To qualify, your income must fall within the 80 percent AMI requirements.
You must also qualify for a first mortgage from an approved mortgage provider and complete a 12-hour housing counseling course with a HUD-certified agency.
Additional First-Time Buyer Loan Programs
Explore nationwide programs that could also assist you in achieving your goal of homeownership as you analyze your options for first-time homebuyers in the state of Louisiana. Consult Bankrate’s guide on first-time homebuyer loans and programs to determine your options.
The Bottom Line
Now that you are aware of your possibilities as a Louisiana first-time homebuyer, you are prepared to make a purchase.
While the Louisiana Housing Corporation does not provide loans or make financing decisions, it does provide a database of mortgage lenders to help you begin the process and determine if you are qualified for any assistance.
It’s crucial to look around for the best mortgage rates and compare loan offers to ensure you’re getting the greatest deal regardless of the program you choose.