Louisiana Down Payment Assistance and First-Time Homebuyer Programs

Louisiana ranks among the most affordable states in the U.S. for purchasing a home. According to a study by personal finance experts Wealth of Geeks, the average home in Louisiana costs 4.74 times the annual salary, placing it sixth among states with the most affordable housing markets.

Yet, Louisiana still has one of the least competitive markets in the entire country. Inflation has made saving up the necessary down payments for home purchases difficult. It also doesn’t help that higher interest rates have increased borrowing costs, limiting budgets for many buyers, particularly first-time homeowners.

Fortunately, prospective homebuyers can explore several low-interest down payment assistance programs in Louisiana. Some programs provide as much as $55,000 in down payment assistance. With the right information, you can access these grants and loans for first-time homebuyers and become a homeowner in Louisiana sooner than expected.

Looking for assistance in a specific part of Louisiana?

This page compiles all available assistance for Louisiana homebuyers, including statewide and local resources. For information about down payment assistance in specific local areas, you can find relevant details here:

• Kenner
• New Orleans
• Shreveport
• Jefferson Parish

Down payment assistance in Louisiana

Potential homebuyers can access several homeownership assistance programs in Louisiana. Stairs Financial simplifies the process by facilitating your connection with a reputable lender and enabling you to explore and compare up-to-date loan and assistance programs, all within a single platform.

Louisiana Housing Corporation

The Louisiana Housing Corporation (LHC) is a state agency dedicated to ensuring that all residents of Louisiana have access to safe and affordable housing. This agency offers several homeownership programs tailored to low and moderate-income individuals and families statewide.

LHC MRB Programs

The LHC’s Mortgage Revenue Bond Assistance and Home programs are designed to help prospective homebuyers who are at 80% AMI or less and may not have enough money to meet down payment and closing costs. 

Assistance type: Deferred payment loan

Sponsor: LHC

Assistance amount: Between 5% to 9% for the HOME program and 4% of the mortgage amount for the Assisted program

Eligibility requirements

• Applicants must be first-time homebuyers.
• Applicants must meet local income requirements.
• The minimum credit score required to be eligible is 640

LHC Premier Program

LHC also offers conventional and government mortgages through its Premier Program. This program is similar to the MRB option; however, it’s not limited to first-time homebuyers and can be used for new purchases only, with no refinances.

Assistance type: Deferred payment loan

Sponsor: LHC

Eligibility requirements

• Household income must be up to $99,000 based only on the applicant’s income.
• The property must be located in Louisiana
• Homebuyer education is required for first-time homebuyers

LHC Delta 100 Program

The Delta 100 Program is a $2 million, parish-specific program that assists some first-time homebuyers without traditional credit. However, applicants must have demonstrated the capacity, eagerness, and dedication to homeownership through alternate avenues.

Assistance type: Deferred payment loan

Sponsor: LHC

Assistance amount: Up to 3% for closing costs and prepaid items.

Minimum borrower contribution: 1% of purchase price or $1,500, whichever is less

Eligibility requirements

• First-time homebuyers only with no minimum credit score
• Must purchase single-family housing in the Delta Parishes
• Homebuyer education is required.

LHC MCC Program

LHC’s Mortgage Credit Certificate (MCC) program is a $5 statewide program designed to aid first-time homebuyers, veterans, and low to moderate-income buyers purchase homes in designated areas. The MCC program can be paired with any of LHC’s down payment assistance programs. Ultimately, this program aims to increase applicant’s disposable income, thereby increasing their eligible loan amount.

LHC Pathways to Homeownership program

LHC looks to bridge the affordability gap between the maximum amount a homebuyer can afford and the actual home price through the Pathways to Homeownership Soft Second program. The program offers assistance as a deferred payment loan, which will be forgiven if the homebuyer occupies the home for ten years.

Assistance type: Deferred payment loan

Sponsor: LHC

Assistance amount: 20% of the purchase price up to $55,000 and $5,000 for closing costs for a total of up to $60,000

Eligibility requirements

• Applicants must be a first-time homebuyer without a primary residence in three years, a single parent, or a displaced homemaker.
• Applicants must have an annual household income at or below 80% of the Area Median Income (AMI)

LHC Preferred Conventional Program

In addition to down payment assistance, the Louisiana Housing Corporation offers residents the LHC Preferred Conventional Program. This program offers higher loan-to-value than FHA, increased income limits, and no upfront mortgage insurance premium. It covers some or all down payment, closing costs, and prepaid items.

Assistance type: Deferred payment loan

Sponsor: LHC

Assistance amount: Up to 4% of the total purchase price

Eligibility requirements

• The program is not exclusive to first-time homebuyers
• Applicants must fall within the program’s maximum income limit of $99,000 and credit score of at least 640
• First-time homebuyers are responsible for completing a homebuyer education course

Market Rate GNMA Program

Finally, residents can take advantage of LHC’s Market Rate GNMA program to cover the upfront costs of homeownership. This program can be paired with an FHA, VA, or USDA rural development loan to raise the funds needed to cover the down payment, closing costs, and prepaid items.

Assistance type: Deferred payment loan

Sponsor: LHC

Assistance amount: 4% of the total purchase price

Eligibility requirements

• All applicants must fall under 115% of the Area Median Income and have a minimum credit score of 640.
• Any home being purchased must be a single-family house located in Louisiana.

City of Kenner First-Time Homebuyers Assistance Program

The City of Kenner, located in Jefferson Parish, is a vibrant suburban community along the Mississippi River, just west of New Orleans. Known for its outdoor recreation sports and cultural diversity, the city also provides residents with a high quality of life, affordable housing options, and a welcoming atmosphere that makes it a desirable place to live.

One such housing option is the First-time Homebuyer Assistance Program, offered by Kenner’s Department of Community Development to provide financial assistance to low-, moderate, and medium-income households seeking to become homeowners in the city. Repayment is required if the home is sold, vacated, or used for investment purposes.

Assistance type: Deferred payment loan

Sponsor: Kenner’s Department of Community Development

Assistance amount: Up to $35,000 towards down payment and closing costs

Purchase price limit: $180,000

Eligibility requirements

• The income limit should be $40,550 for a two-person household and atleast $45,600 for three or more persons.
• The home being purchased must be an existing or newly constructed single-family residence located in the incorporated areas of the City of Kenner.
• Applicants must complete a first-time homebuyer training course.

New Orleans Homeownership Programs

Often called “The Big Easy,” New Orleans is one of the country’s most unique and iconic cities renowned for its vibrant culture, rich history, music scene, and distinct cuisine. It’s also known for its historic architecture and diverse neighborhood for residents and visitors. However, beyond these side attractions, New Orleans, like most urban cities, faces challenges related to affordable housing.

Thankfully, New Orleans residents can also explore a local homeowner assistance program. The Expand to Homeownership program by the Finance Authority of New Orleans grants eligible applicants up to 4% of the purchase amount. The program assists first-time homebuyers in bridging the gap between a home’s purchase price and the maximum first mortgage.

Assistance type: Deferred payment loan

Sponsor: New Orleans’ Finance Authority

Assistance amount: 4% of the purchase price

Purchase price limit: $324,000

Eligibility requirements

• Applicants for the Expand to Homeownership program must have income not exceeding $84,000 for FHA/VA loans or $99,000 for conventional loans.
• Eligible applicants must also complete homeownership training by approved training agencies.

Shreveport Downpayment Assistance Program

Louisiana’s third most populous city, Shreveport, is probably best known for its flashy riverboat casinos, but there’s a lot more to the city than that. It is a crucial economic hub featuring the oil and gas, healthcare, manufacturing, and gaming industries. Still, the city remains more affordable than many other major metro areas, with several initiatives meant to improve the standard of living within the city.

Through the City of Shreveport’s Homebuyer Assistance Program Participation Initiative (HAPPI), first-time homebuyers have the opportunity to obtain down payment and closing cost assistance from approved local lenders. Prospective homebuyers can get assistance based on the percentage of their area’s median income.

Assistance type: Deferred payment loan

Sponsor: The City of Shreveport

Assistance amount: 20% of the home’s sales price or appraised value, whichever is lesser.

Eligibility requirements

• Applicants must have an annual household income at or below 80 percent of the Area Median Income.
• Any home purchased must be the borrower’s primary residence and meet minimum property standards.
• Applicants must complete an approved homebuyer education class and have sufficient credit to qualify with any HAPPI-approved lender.

Jefferson Parish Homeownership Assistance Program

Jefferson Parish is a diverse community that offers the perfect blend of vibrant nightlife and the quiet scenery of a nature walk. Jefferson has witnessed significant growth and development over the years, featuring attractions and economic opportunities that make it an ideal location to visit, work, and live.

The Southern Mortgage Assistance Program by Jefferson Parish Finance Authority helps income-eligible applicants overcome the challenge of paying hefty upfront costs in a mortgage transaction. This program provides a 30-year fixed-rate home loan to cover down payment and closing costs.

Assistance type: Deferred payment loan

Sponsor: Jefferson Parish Finance Authority

Assistance amount: Between 3% to 4% of the mortgage amount, depending on the loan type.

Purchase price limit: $271,050 for FHA loans and $417,000 for VA and Freddie Mac’s Advantage loans. RHS loans have no limit.

Eligibility requirements

• Freddie Mac HFA Advantage Loan borrowers must be first-time homebuyers and complete a homeownership education program.
• The home must serve as the borrower’s primary residence.
• The property must be a single-family home, including a new or existing condominium or townhouse.

Louisiana down payment assistance program FAQs

Here’s a rundown of responses to the most frequently asked questions from first-time homebuyers seeking down payment assistance in Louisiana.

Does Louisiana have a first-time buyer program?

Louisiana offers several first-time buyer programs. The Louisiana Housing Corporation offers many of these programs, but some cities also have local assistance initiatives. These programs offer substantial down payment assistance through deferred payment loans.

How to buy a house for the first time in Louisiana?

Buying a house for the first time in Louisiana begins by understanding your budget and determining how much you can afford. You should then get pre-approved for a mortgage to know your purchasing power.

You should also find a reliable real estate agent who specializes in the Louisiana market. Additionally, explore Stairs Financial to explore which down payment assistance you qualify for and contact a trusted lender who can help you apply.

What is the minimum down payment in Louisiana?

The minimum downpayment in Louisiana assumes a 3% down on a conventional mortgage and about 3,5% for FHA loans. However, assistance like VA or USDA loans may not need any down payment.

Can you get Biden first-time home buyer assistance in Louisiana?

The Biden first-time homebuyer assistance program remains a bill and is yet to be enacted. However, it is a national program and will be available in Louisiana when it goes into effect.

What type of Louisiana first-time homebuyer assistance is available?

Most first-time homebuyer assistance programs in Louisiana come in the form of forgivable and deferred payment loans. The conditions for both options are based on applicants residing in the home for specified durations or until the property is sold, refinanced, or the mortgage is paid off.

What is the Louisiana first-time homebuyer income limit?

The income limit for down payment assistance for first-time homebuyers in Louisiana typically corresponds to 80% of each city’s median income (AMI).

What are some requirements for first-time home buyers in Louisiana?

Some standard requirements for first-time homebuyers in Louisiana include;

• Proof of income and employment stability.
• Good credit score and history.
• Sufficient funds for a down payment and closing costs.
• Meet the lender’s debt-to-income ratio requirements.

How do I qualify for Louisiana first-time home buyer programs?

The major qualifying factor for Louisiana first-time homebuyer programs revolves around income limits, with most programs featuring specific limits based on household sizes.

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.