Louisiana First-Time Home Buyer Programs
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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.
Conventional mortgage
Best for:
Low down payments, limited mortgage insurance premiums
What you need to know:
A conventional mortgage is a home loan that isn’t guaranteed or insured by the federal government. Conventional mortgages that conform to the requirements set forth by Fannie Mae and Freddie Mac allow down payments as low as 3% for first-time buyers or lower-income home buyers. Unlike FHA loans, conventional loans allow borrowers to eventually cancel their mortgage insurance or avoid mortgage insurance altogether if they put at least 20% down.
Choosing the right home loan can boost your chances of approval and may save you thousands in the long run.
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VA loans
Best for:
Military, low down payments
What you need to know:
The U.S. Department of Veterans Affairs helps service members, veterans and surviving spouses buy homes. VA loans are especially generous, providing competitive interest rates, often requiring no down payment or mortgage insurance. Although there is no official minimum credit score, most VA-approved lenders require scores of at least 640.
FHA loans
Best for:
Low credit score, low down payments
What you need to know:
This is the go-to program for many first-time home buyers with lower credit scores. The Federal Housing Administration allows down payments as low as 3.5% for those with credit scores of 580 or higher. The FHA will insure loans for borrowers with scores as low as 500 but requires a 10% down payment for a score that low. Mortgage insurance is required for the life of an FHA loan and cannot be canceled.
USDA loans
Best for:
Low down payments, rural home buyers
What you need to know:
A USDA home loan is a zero-down-payment mortgage for eligible rural and suburban home buyers. USDA loans are issued by the U.S. Department of Agriculture through the USDA Rural Development Guaranteed Housing Loan Program. There are income limitations, which vary by region. Applicants with credit scores of 640 or higher receive streamlined processing. Those with scores below that must meet more stringent underwriting standards.
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.
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.
Choosing the right home loan can boost your chances of approval and may save you thousands in the long run.
Great For: Customer Service
Rocket Mortgage, LLC
on Rocket Mortgage
Great For: Low Credit Scores
New American Funding
on New American Funding
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