Getting home ownership can be an exciting, but sometimes complicated, process. Whether you’re looking for a place to be at home in the Big Easy or along the state’s coastal plains, Louisiana has a lot to offer from Cajun cuisine and jazz to growing industries like aerospace, agribusiness and production.
Whether you are a First time buyer If you’re looking for real estate in Baton Rouge, New Orleans, Lafayette, Shreveport, or anywhere in between, start with Louisiana Housing Corporation, the state agency that ensures local residents, including first-time buyers, have access to affordable housing and mortgages.
Louisiana First Time Buyer Loan Programs
LHC Mortgage Revenue Bond Programs
Louisiana Housing Corporation (LHC) Mortgage Revenue Bond programs are helping first-time buyers – those who have not owned a home in the past three years – with funding and financing Down payment and final financial assistance. There are two programs:
- Mortgage Income Bond Home: Includes 5-9 percent grant with no interest or repayment
- Mortgage Income Supports: Includes 4 percent interest-free, unpaid second mortgage that is forgivable after three years
Both programs require you to have a minimum score of 640 and complete a homebuyer training course. Additionally, the home you purchase must be in Louisiana, your primary residence, and not exceed the price of $ 271,164 (other limits may apply depending on your location). The home can be a single family home, condo, townhouse, modular home, or prefabricated home (which can be double wide if you can get FHA credit).
For the Mortgage Revenue Bond Home Program, your income must be at least 80 percent of the Area Median Income (AMI) to qualify. For the Assisted program, your income can range from 115 to 140 percent of the AMI, depending on the type of loan, the size of the household, and whether the home you bought is in a particular area.
Conventional LHC market price program
LHC’s conventional market pricing program is available to both first-time buyers and returning home buyers within the 80 percent AMI limits and includes a competitive 30-year fixed rate and discounted mortgage insurance. The loan can also be combined with a down payment assistance of up to 4 percent.
If this is your first time buyer, you must take a homebuyer training course to qualify. For all buyers, the minimum credit requirement is $ 640 and the credit limit is $ 453,100. The loan can only be used to buy a single family home.
LHC Market Rate GNMA program
LHC’s Market Rate GNMA program is also aimed at first-time and repeat buyers, offering a competitive 30-year fixed rate FHA, VA, or USDA loan and up to 4 percent down payment assistance. Your income can be up to 115 percent of the AMI with this program, but the minimum credit score is also 640 (although this may vary depending on the loan product).
LHC Delta 100 program
LHC’s Delta 100 program is a parish-specific program that provides first-time buyers with impaired credit with full financing with a 2 percent interest rate and no mortgage insurance plus up to 3 percent down payment and assistance with closing costs.
There is no minimum credit requirement to be eligible, but the program is only available for single family home purchases and the home must be in one of these communities:
- East Carroll
- Pointe Coupee
- West Carroll
- Ouachita (without Monroe)
Additionally, the home ownership cannot exceed $ 242,000 and your income is capped at the 80 percent AMI threshold. You must also be able to contribute either 1 percent of the purchase price or $ 1,500, whichever is lower, in order to qualify.
Louisiana Down Payment Assistance
LHC Resilience Soft Second Program
LHC’s Resilience Soft Second program was launched for the 51 Louisiana communities affected by the 2016 floods. The program offers first-time home buyers a second mortgage equal to 20 percent of the purchase price of their home of up to $ 55,000 plus up to $ 5,000 in closing costs. If you use the house as your primary residence for 10 years, the second mortgage is completely forgivable.
- Must be a first time buyer (or have not owned a home in the last 3 years); a single parent who owned only one house with one ex-spouse during their marriage; or a displaced housewife who only owns a house with one spouse
- Minimum score of 640
- A maximum of 48 percent debt-to-income ratio
- Must complete the Homebuyer training course
- Must meet the LHC income limits (at or below 80 percent of the AMI)
- Must be a single family home, apartment, or townhouse
- Must be in one of 51 participating parishes in Louisiana
- Must not be in a floodplain
- Must be a primary residence
- Must not exceed $ 314,827
New Orleans Direct Soft Second Mortgage Assistance Program
This Down Payment Support Program, offered by the New Orleans Office of Community Development, offers up to $ 45,000 for a second mortgage down payment and an additional $ 5,000 in closing expense support for first-time home buyers in Orleans Parish. This interest-free, unpaid second mortgage is forgivable after 10 years if you remain your main residence in the house during this time.
Your income must be within the 80 percent AMI guidelines be eligible. You must also qualify for a first mortgage from an approved mortgage lender and complete 12-hour training at a HUD approved housing agency.
Other first-time buyer loan programs
While you are considering your first-time Louisiana homebuyer options, be sure to consider national programs that may also help achieve your homeownership goal. Read Bankrate’s helpful guide too Loans and Programs for First Time Buyers to see what might be available to you.
For more Louisiana home ownership programs, including by city and town, see HUD.gov.
Now that you know your options as a first-time buyer in Louisiana, it’s time to make a purchase. While the Louisiana Housing Corporation does not make any loan or funding decisions, the agency does provide a directory of Mortgage lender to help you start the process and what assistance you may be eligible for.
Whichever program you choose, it is important to Browse for the best mortgage rates and compare loan offers to make sure you are getting the best deal.