Skip To Content
Our site is currently experiencing technical difficulties. We are actively working on a solution. Thanks for your patience.

Louisiana First-Time Home Buyer Program Guide

Are you looking for a place to settle down in Louisiana? Buying a home is a significant financial commitment whether or not it’s your first property. Thankfully, Louisiana homebuyer programs offer mortgage options for borrowers with a variety of financial circumstances. To aid in your mortgage journey, Smart Move is exploring Louisiana’s major homebuyer programs.

Before we begin, keep in mind that this is not an exhaustive list of first-time homebuyer programs. We highly recommend consulting with an expert before making any mortgage-related decisions. 

What Is a First-Time Homebuyer in Louisiana?

Though it’s easy to get thrown off by the name, you can be considered a first-time homebuyer even if you’ve previously purchased a house. A first-time homebuyer in Louisiana is any person who has not owned a home in the past three years. This three-year period begins at the buyer’s settlement.

Louisiana Housing Corporation (LHC) Programs:

The LHC’s Mortgage Revenue Bond programs are designed to help first-time homebuyers cover down payment and closing costs. The program includes two options listed below:

LHC Mortgage Revenue Bond Programs:

The LHC’s Mortgage Revenue Bond programs are designed to help first-time homebuyers cover down payment and closing costs. There are two versions of the program listed below.

  1. Mortgage Revenue Bond Home: Includes 5% to 9% percent grant with no interest or repayment
    1. Income must be at or below 80% area median income (AMI)
  1. Mortgage Revenue Bond Assisted: Includes 4 percent no-interest, no-payment second mortgage, forgivable after three years
    1. Income must be between 115% and 140% area median income (AMI)

Requirements:

  • Minimum credit score of 640.
  • Completed homebuyer education course.
  • Must purchase home in Louisiana.
  • Must not exceed $349,525.

LHC Delta 100 Program

The Delta 100 Program is a parish-specific program offered by the LHC. The program provides 100% financing with a below-market interest rate. It also covers up to 3% of closing costs for credit-challenged home buyers. 

 Benefits: 

  • 30-year fixed mortgage with below-market interest rates.
  • No minimum credit score.
  • No mortgage insurance required.
  • Up to 3% closing costs plus prepaid items. 

Requirements:

  • Household income up to 80% area median income.
  • Maximum loan of $242,000.
  • Must complete homebuyer education course.
  • Must be in one of the following Delta parishes: 
    • Caldwell, Catahoula, Concordia, East Carroll, Franklin, Madison, Morehouse, Pointe Coupee, Richland, Tensas, West Carroll, and Ouachita (excluding Monroe).

LHC Resilience Soft Second Program

The Resilience Soft Second Program provides forgivable loans to first-time homebuyers. It specializes in helping single parents and displaced spouses find homes in Louisiana. 

Benefits:

  • 20% loan up to $55,000 the purchase price.
  • $5,000 for closing costs up to $60,000.
  • Loan forgiven after 10-year period within the residence. 

Requirements:

  • No ownership of a principal residence for past 3-year period.
    • Includes a spouse (if either meets the above test).
  • A single parent who has only owned a former spouse while married.
  • Displaced homemakers who have only owned a spouse.
  • Property must not be within a flood zone.

New Orleans Direct Soft Second Mortgage Assistance Program

The Direct Homebuyer Soft Second Mortgage Assistance Program is a homebuyer program offered by the New Orleans Office of Community Development. The program provides forgivable mortgage assistance up to $55,000. It also grants $5,000 in closing costs subsidies. 

Benefits: 

  • Up to $55,000 in the form of a second mortgage.
  • Up to $5,000 in closing costs assistance.
  • Loan forgiven after 10-year period within the residence. 

Requirements:

  • Maximum sale price of $324,000.
  • Household income up to 80% area median income.
  • Qualifies for first mortgage from approved lender. 
  • Eligible first-time homebuyer.
  • Within the Orleans Parish.
  • Completed homebuyer education course.

National First-Time Homebuyer Programs:

FHA Loan

Offered by the Federal Housing Administration, the FHA Loan is a mortgage for homebuyers lacking traditional credit. Available loan amounts change depending on your credit score. These conditions are listed below: 

  • Credit score: 580+
    • Maximum loan amount: 96.5% home value
    • Minimum down payment: 3.5% purchase price
  • Credit score: 500 – 579
    • Maximum loan amount: 90% total home value
    • Minimum down payment: 10% purchase price

Benefits:

  • Maximum loan amount between 9.65% – 90% home value.
  • Can qualify for loan even with a bankruptcy or other financial issue. 
  • Minimum down payments as low as 3.5%.

Requirements:

  • Maximum borrowing limit dependent on area.
  • Must prove steady employment history with tax returns, bank stubs, and W2s.
  • Home must be appraised by FHA.
  • Must be a primary residence. 
  • Property must be inspected and approved by FHA.
  • Requires mortgage insurance.

VA Loans

The Veterans Association offers low-interest, zero-down payment loans to active-duty military members or veterans. These loans are obtained through your lender instead of the Veterans Association. 

Benefits: 

  • Zero-down payment required. 
  • Competitive interest rates.
  • No mortgage insurance required.

Requirements:

  • Factors affecting eligibility are: 
    • Length of service.
    • Duty status. 
    • Type of service. 

USDA Loans: 

Offered by the US Department of Agriculture, these loans provide zero-down payment loans to first-time home buyers in rural areas. The mortgage is designed for low to moderate income borrowers facing credit challenges.

Benefits:

  • No down payment required.
  • Interest rates as low as 1%. 
  • Borrowers can opt out of mortgage insurance with a fee.

Requirements:

  • Must prove steady employment history.
  • Reliable credit history.
  • Monthly mortgage pay must be below 29% of monthly income.
  • Other monthly payments cannot exceed 41% of monthly income.

Navigate Louisiana First-Time Homebuyer Programs With Confidence!

You may feel overwhelmed after researching Louisiana’s first-time home buyer programs. Don’t worry! Smart Move agents work with you every step of the way, ensuring you understand each part of the process. To speak with an agent today, send us a message or call us at 225-448-2850. We look forward to hearing from you!

Trackback from your site.

Leave a Reply

*
*