Louisiana First-Time Home Buyer Programs

First-time home buyers living in Louisiana can access some helpful programs, from down payment assistance to closing cost grants.

The Louisiana Housing Corp. helps low- to moderate-income residents obtain mortgages with competitive interest rates and other assistance.

National first-time home buyer programs

For residents in all 50 states, these national loan programs allow low, and sometimes even no down payments.

Louisiana Housing Corp. first-time home buyer programs

Programs offered by the Louisiana Housing Corp. can apply to first-time home buyers as well as those purchasing again. Some programs are for particular parishes or regions in the state. There are income limits, as well as maximum purchase prices.

Details vary by program, but here are some general guidelines.

LHC highlights and eligibility requirements

Highlights

• Down payment and closing cost assistance of up to 9% of the home’s purchase price.

• Reduced mortgage insurance programs available.

• No origination or discount fees.

• 30-year fixed-interest loans at or below market rates.

Eligibility

• A home buyer education course could be required.

• Minimum credit score for most programs: 640.

• The home must be your primary residence.

• Maximum purchase price limits apply, depending on the program.

» MORE: Tips for first-time home buyers

Market Rate Conventional Program

Best for:

Down payment assistance, closing cost assistance

What you need to know:

The Market Rate Conventional Program offers 30-year fixed-rate mortgages for purchases of single-family homes. Additional down payment and closing cost assistance — up to 4% of the home's purchase price — is available. Sale price and income limits apply. This program is not limited to first-time buyers, but homebuyer education is required for first-time buyers.

» MORE: The best homeowners insurance in Louisiana

Market Rate GNMA Program

Best for:

Government-backed loans, closing cost assistance, down payment assistance

What you need to know:

This program offers FHA, VA or USDA backed loans and up to 4% of the home's purchase price in cash assistance. Repeat home buyers may also qualify.

Mortgage Revenue Bond Assisted Program

Best for:

Down payment assistance, closing cost assistance

What you need to know:

Allowing 4% of the home's purchase price in assistance, the Assisted Program also has income and purchase price limits that may vary in Baton Rouge, Alexandria, Monroe and New Orleans. If the property is in a target area, higher income limits will apply.

Home/MRB Program

Best for:

Low-income borrowers, closing cost assistance

What you need to know:

For borrowers whose household income falls below 80% of the area’s median income, this program offers assistance ranging between 5% and 9% of the home's purchase price. The Home/MRB Program requires a debt-to-income ratio below 41% and the borrower must contribute at least 1% of the home’s sales price, or $1,500 — whichever is less.

Delta 100 Program

Best for:

Low down payment, closing cost assistance, no credit score, rural

What you need to know:

An area-specific program, Delta 100 targets the eastern parishes of the state along and adjacent to the Mississippi River. Catering to low-to-moderate income first-time home buyers, the program offers up to 100% financing without mortgage insurance. As much as 3% of the home's purchase price in closing cost assistance. No minimum credit score is required. Borrowers must financially participate in the purchase, kicking in 1% of the purchase price or $1,500 — whichever is less.

Resilience Soft Second Program

Best for:

Closing cost assistance, low-income borrowers

What you need to know:

The Resilience Soft Second Program offers first-time buyers forgivable assistance to help bridge the gap between what they can afford and the purchase price of a home. Homebuyers can borrow at much as $60,000, and if they stay in the home for 10 years, the loan will be forgiven. Income, purchase price and location limits apply.

Mortgage Credit Certificate Program

Best for:

Tax credits

What you need to know:

The MCC program allows first-time homebuyers, veterans and repeat buyers purchasing a home in designated areas with low- to moderate-income to be eligible for a tax break. Qualified taxpayers may claim up to 40% of their annual mortgage interest payments, up to a maximum of $2,000 a year, as a tax credit on their federal income tax return.

Your next step

Although these programs are enabled by the Louisiana Housing Corp., authorized lenders implement them. It’s smart to shop more than one lender, as credit qualifications, terms and other borrower requirements may vary from one lender to the next.

For full details on any Louisiana Housing Corp. program, visit the LHC website.

To get started, consult the list of lenders that participate in LHC programs.