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- Louisiana Housing Corporation offers state first-time buyer programs and financial assistance.
- Select cities across the state offer additional resources for first-time home buyers.
- You may be required to meet an income limit to qualify for state or city programs.
First-time homebuyers in the state of Louisiana can turn to Louisiana Housing Corporation (LHC) or city programs to secure a good mortgage rate or receive financial assistance.
Below is an overview of each state program, as well as local programs in Alexandria, New Orleans, and Kenner.
LHC Home | MRB program
The Home| The MRB program supports low-income first-time homebuyers by paying a portion of the down payment and closing costs. You could get a loan of 5% to 9% of your mortgage to cover these costs.
To for the Home| To be eligible for the MRB program, you, as a first-time home buyer, must meet the following requirements:
- You plan to buy a house in Louisiana
- You meet the local income requirements for your region
- The purchase price of your home does not exceed $349,525
- You have a credit score of at least 640
Below are the local income requirements for the LHC Home| MRB program.
LHC Mortgage Revenue Bond Assisted Program
The LHC Mortgage Revenue Bond Assisted Program also provides financial assistance to first-time homebuyers. You can get a 4% loan on your mortgage to pay your down payment or closing costs.
The Mortgage Revenue Bond Assisted Program could be a good option if your income meets the Home | exceeds MRB program.
The program is open to all first-time home buyers who meet the following criteria:
- You plan to buy a house in Louisiana
- Your income is below the income limit for your region
- You are planning to buy a home that costs less than $349,525
- You have a credit score of at least 640
Below are the local income requirements for participation in the Mortgage Revenue Bond Assisted program.
LHC Market Rate GNMA program
The Market Rate GNMA program allows you to get a 30-year FHA, VA, or USDA fixed-rate mortgage at a low interest rate. You also receive up to 4% of your mortgage as a loan that can be used to pay your down payment and closing costs.
You don’t have to be a first-time homebuyer to qualify for the Mortgage Rate GNMA program. However, you still must have a minimum credit score of 640 and a household income of up to 115% of the regional median income to apply.
Also remember that the FHA mortgage limit is $420,680 and the VA mortgage limit is $647,200 for all municipalities.
Below you can see if you meet the income limit requirements for the Mortgage Rate GNMA program according to the state of Louisiana:
LHC Delta 100 program
The LHC Delta 100 program offers a 30-year, fixed-rate mortgage of up to $242,000 to first-time homebuyers planning to purchase a home in select areas of Louisiana. You can also get a loan that covers 3% of your mortgage.
This program has no minimum credit requirements, so you might choose this program over the others if you don’t have a high credit score or a lot of credit history.
To participate in the program, you must contribute at least 1% of the purchase price of your home or $1,500 (whichever is less). Your household income must not exceed $99,000.
You are only eligible if you plan to buy a home in the Delta communities including:
- Caldwell
- Katahoula
- Concordia
- East Carroll
- Franklin
- madison
- apartment building
- Great coupe
- kingdom
- tensas
- West Carroll
- Ouachita (not Monroe)
LHC Mortgage Credit Certificate Program
The LHC Mortgage Credit Certificate Program may appeal to you if you are a first time low to middle income home buyer.
With the certificate program, you may receive a federal tax credit of up to $2,000 per year. You are still eligible to participate in any of LHC’s other programs.
To see if you qualify, check the LHC income limits here.
LHC Soft Second Mortgage
If you are a first time home buyer and have an income less than 80% of the area median, the LHC Soft Second Mortgage may be a good choice.
The LHC Soft Second Mortgage is a 10-year forgivable loan that provides 20% of the purchase price of your home (up to $55,000) and up to $5,000 for closing costs. If you stay in your home for 10 years, your loan will be forgiven and you won’t have to pay it back.
To apply for an LHC Soft Second Mortgage, you can buy a home in a community designated by Gustav, Ike, or Isaac, which includes: Acadia, Allen, Ascension, Avoyelles, Beauregard, Bienville, Bossier, Caddo, Calcasieu, Caldwell, Catahoula, Claiborne, De Soto, East Carroll, East Baton Rouge, East Feliciana, Evangeline, Franklin, Grant, Iberia, Iberville, Jackson, Jefferson Davis, Lafayette, LaSalle, Lincoln, Livingston, Madison, Morehouse, Natchitoches, Ouachita, Pointe Coupee, Rapides, Red River, Richland, Sabine, St Helena, St James, St Landry, St Martin, St Tammany, Tangipahoa, Union, Vermilion, Vernon, Washington, Webster, West Baton Rouge, West Carroll, West Feliciana and Winn Parish.
How to apply for an LHC program
If you qualify and wish to apply, select a participating lender from this list. The lender will walk you through the home buying process and determine if you qualify for one of the programs.
Additional local resources
If you are planning to buy a home in one of these areas, you may also be able to get financial assistance through a city program.
Alexandria
The city of Alexandria has a program for first-time home buyers to earn up to 80% of the area’s median income.
The program may give you a loan of up to $25,000 that can be used to reduce your mortgage principal or to pay for closing costs.
New Orleans
First-time homebuyers in New Orleans earning less than 80% of the area median may be eligible for a forgivable 10-year loan of up to $55,000 and up to $5,000 in graduation grants. If you decide to sell your home in less than ten years, you will either have to pay back all or part of your loan.
You must take a homebuying education course and qualify for a mortgage through a participating lender to verify your eligibility.
connoisseur
The City of Kenner is offering a 0% forgivable loan of up to $50,000 that can be used to pay down payments and closing costs. To qualify, you must purchase a home in Kenner town for less than $196,000 and apply through a participating lender.
