Last Updated on August 23, 2023 by Hannah Stevens
Mortgage Assistance for Homebuyers in Louisiana
Delta 100 Program
The Delta 100 Program was created by the Louisiana Housing Corporation (LHC). It is then designed to help individuals in the Delta Parishes realize their homeownership dreams. Additionally, this program helps first-time homebuyers with limited credit to purchase a home using alternate financing options.
Available Assistance
LHC’s Delta 100 Program provides financing up to 100% and closing costs assistance up to 3%. The loan can also be used to help with prepayments. However, the maximum loan amount is $242,000.
Eligibility Requirements
To be eligible for the Delta 100 Program, applicants need to be first-time homebuyers who are purchasing single-family housing within the Delta Parishes. However, they must be able or willing to contribute $1,500 or 1% of the purchase price from their own funds. The applicant must have a household income of less than $99,000 (80% AMI) and must have completed a Homebuyer Education course.
Delta Parishes includes the following: Caldwell, Catahoula, Concordia, East Carroll, Franklin, Madison, Morehouse, Pointe Coupee, Richland, Tensas, West Carroll, and Ouachita (excluding Monroe)
MRB Home
Louisiana Housing Corporation (LHC)’s mission is to make sure that everyone has access to safe, affordable and energy-efficient housing. The LHC also has the Mortgage Revenue Bond Home Program.
Available Assistance
MRB Home helps first-time buyers who don’t have enough funds to cover closing costs and down payments. The interest rates are lower than the market and the down payment and closing costs assistance vary depending on how large the loan amount. However, for conventional loans, the program offers lower mortgage insurance.
Eligibility Requirements
All applicants must be first-time buyers who intend to purchase a Louisiana property. However, borrowers must have a minimum 80% AMI. They must also meet the income and purchase price requirements, and have a minimum credit score 640 to be eligible.
Income Limits
Greater Baton Rouge Area
- 1-person household: $44,000
- 2-person household: $50,250
- 3-person household: $56,550
- 4-person household: $62,800
Greater New Orleans Area
- 1-person household: $39,450
- 2-person household: $45,050
- 3-person household: $50,700
- 4-person household: $56,300
Purchase Price Limits
- Baton Rouge Area: $271,164
- Greater New Orleans Area: $271,164
City of Kenner First Time Homebuyers Assistance Program
The City of Kenner Department of Community Development established and administers the First-time Homebuyers Assistance Program. Then, this program provides financial assistance for low, moderate and median income households who are trying to buy a home in Kenner.
Available Assistance
Qualifying applicants can receive a deferred loan of up to $35,000 for closing costs assistance, down payment, and/or to reduce their principal mortgage loan amount. These funds must be repaid if the home is sold or vacated during the occupancy period or if it’s used as an income-producing or investment property. According to specific grant terms, the loan can be forgiven. The homebuyer will not be required to repay the deferred payments loan once it is forgiven.
Affordability Period Established by HUD:
- Less than $15,000 of assistance – occupancy period of 5 years required
- $15,000 to $40,000 of assistance – occupancy period of 10 years required
- More than $40,000 of assistance – occupancy period of 15 years required
Eligibility Requirements
To be eligible for the program, applicants must be first-time homebuyers and U.S. citizens. They will also need to complete a training course for first-time homebuyers and their household income must be within the HUD guidelines.
Property Guidelines
There are also property requirements to meet. The property must also be a single-family residence, either newly built or existing, located within the City of Kenner. It must also serve as the applicant’s primary residence. The house must be a single-unit dwelling, not a rental or investment property, and it must meet all local codes, Housing Quality Standards, as well as lead-based paint standards. Additionally, inspection of the property is a requirement to verify that it meets HQS, City Code, and is acceptable to the primary lender or insurer. The maximum price is currently $180,000.
Income Limits
- 1 person household: $35,500
- 2 person household: $40,550
- 3 person household: $45,600
- 4 person household: $50,650
- 5 person household: $54,750
- 6 person household: $58,800
- 7 person household: $62,850
- 8 person household: $66,900
This programme is similar to the First-Time Homebuyer Assistance Programs in Kentucky.
Expand to Homeownership
Expand to Homeownership Program helps homebuyers in New Orleans pay the down payment and close costs associated with purchasing a home. However, if you are the borrower and live in the home as your primary residence, there is no need to repay.
Available Assistance
This homebuyer assistance program, which is a fixed-rate 30-year mortgage, provides eligible borrowers with up to 4 percent of their loan amount. As long as the borrowers live in the home, repayment is not necessary.
Eligibility Requirements
To be eligible for the Expand to Homeownership Program, applicants must meet certain criteria. Additionally, borrowers must be below the income limit of $84,000 for FHA/VA loans and $99,000 for conventional loans. Then, the minimum credit score must be 640, and a maximum debt ratio of 45 percent. Maximum amounts for FHA loans are $271,050 and conventional loans are $417,000 respectively.
Homebuyer Education
Participation in the grant program requires homebuyer counseling. If counseling is not completed before final loan approval, funding cannot be granted. However, this requirement cannot be fulfilled by organizations that aren’t certified by the Louisiana Homebuyer Education Collaborative.
This program provides financial assistance to qualified applicants who are interested to purchase a home, but cannot afford the upfront costs. It also includes the down payment and closing costs. These costs can be significant and people might find themselves stuck in a renters’ trap if they are unable to pay them.
LHC Preferred Conventional Program
Louisiana Housing Corporation offers the LHC Preferred Conventional Program to residents. This program offers better terms than FHA loans. The program also provides up to 4 percent assistance for closing costs, a down payment and/or prepaid item purchases.
Available Assistance
LHC Preferred Conventional Program assists homebuyers in meeting upfront costs. It then provides assistance funds up to 4% of the purchase price. Then, these funds can be used to cover all or part of the down payment, closing cost, and/or prepaid item.
Eligibility Requirements
The LHC Preferred Conventional Program does not only offer assistance for first-time homebuyers, but also offers down payment assistance. Then, of course all applicants must meet certain requirements. All applicants must also be below the maximum income limit of $99,000, and have a minimum credit score of 640. First-time homebuyers must also complete a homebuyer education program.
Property Guidelines
LHC Preferred Conventional Program homes must be owned-occupied and single-family housing (1-2 units principal residence). For a property with one unit, the loan-to-value ratio is 97% and for a property with two units it is 95%.
This program provides financial assistance to qualified applicants who are interested in purchasing a home, but cannot afford the down payment or closing costs. These costs can be significant and people might find themselves stuck in a renter’s trap if they are unable to pay them.
Market Rate GNMA Program
To help residents pay the initial costs of purchasing a home, the Louisiana Housing Corporation offers the Market rate GNMA program. The program provides homebuyers with up to 4% assistance in the form of a fixed-rate FHA, VA, or USDA Rural Development loan for a 30-year period.
Available Assistance
The program provides homebuyers with assistance funds of up to 4% of the purchase price. Then, this can be used for closing costs, down payments, or prepaid items. However, this program does not have any origination or discount fees.
Eligibility Requirements
All applicants must meet the requirements to be eligible for benefits under the Market Rate GNMA Program. This program isn’t only for first-time homebuyers, unlike many others. All applicants must be below the income limit of the program, which is 115 percent of area median income. Then, to be eligible, applicants must have a minimum credit score 640.
All homes purchased using Market Rate GNMA program funds must be single-family housing (one unit principal residence) and located in Louisiana.
Choosing a Lender
There are many lenders that the program partners with, and applicants can choose from them. The instructions also provide information for applicants to help them decide which lender is best for them.
First, choose the lender, then confirm your pre-qualification. Then, for pre-qualification to receive a mortgage loan using the Market Rate GNMA program, make an appointment. Lastly, to complete your loan application, meet with a lender, allow them to pull a credit file, and get assistance in deciding which loan product is best for you (FHA, VA or Rural Development).
This program provides financial assistance to qualified applicants who are interested to purchase a home, but cannot afford the upfront costs. It also includes the down payment and closing costs. These costs can be significant and people might find themselves stuck in a renters’ trap if they are unable to pay them.
Shreveport Home Buyers Assistance Program
The City of Shreveport’s Home Buyers Assistance Program Participation Initiative, (HAPPI) allows first-time homebuyers to access assistance through local lenders for down payment, buydown, and closing costs.
Available Assistance
You can receive up to 20% of the sale price or the appraised value depending on your area median income.
Eligibility Requirements
All applicants must meet the program requirements to be eligible for HAPPI. Borrowers must be first-time buyers. Those who have owned or held title for more than three years are not eligible. The annual income of the household must not exceed 80 percent of HUD’s area median income (limits below). The applicant must complete an approved homebuyer education course and have sufficient credit to be eligible for one of the HAPPI-approved lenders in the city.
Property Guidelines
The home must be the primary residence of the borrower. Property must be eligible to receive HUD mortgage insurance, or another type of insurance. It must also meet minimum property standards. HAPPI is not available for HUD, VA, repossessed or manufactured properties.
Income Limits
All applicants must have a household income that is at least 80 percent of the area’s median income.
- 1 person household: $31,750
- 2 person household: $36,250
- 3 person household: $40,800
- 4 person household: $45,300
- 5 person household: $48,950
- 6 person household: $52,550
- 7 person household: $56,200
- 8 person household: $59,800
Southern Mortgage Assistance Program
The Southern Mortgage Assistance Program is a program that allows residents to obtain a 30-year fixed-rate mortgage along with a Down Payment Assistance Grant. Borrowers can receive assistance up to 3 percent or 4 percent of their loan amount.
Available Assistance
Southern Mortgage Assistance Program provides residents with a fixed-rate 30-year home loan at a fixed rate and a down payment assistance (DPA Grant). For homebuyers who have Freddie Mac HFA Advantage Loans, the assistance covers 3% to 4% of their loan amount.
Eligibility Requirements
- Credit scores of at least 640 is the requirement
- The borrower must have a minimum annual income of $69,000 to qualify for an FHA, VA or RHS loan. The borrower must have a minimum annual income of $99,000 to qualify for Freddie Mac HFA Advantage Loans.
- Borrowers of Freddie Mac HFA Advantage Loans must be first-time homebuyers
- To be eligible for a Freddie Mac Advantage Loan, the borrower must complete a Home Ownership Education Program if they are first-time homebuyers. FHA, VA or RHS loans do not require Home Ownership Education.
Property Guidelines
- The property to be purchased must be within the Parish Of Jefferson
- The residence’s acquisition cost cannot exceed what is allowed by FHA ($271,050), VA (417,000), RHS(no limit) and Freddie Mac’s Advantage Loan (417,000).
- The property must consist of a single family home. This could include a townhouse or condominium unit. It can also be a new or existing residence.
- The borrower must use the home as his primary residence.
- Programs do not allow duplexes, multi-unit, seasonal, vacation, investment or recreational homes.
- Manufactured housing cannot be eligible for the Freddie Mac HFA Benefit Program
NOTE: Some borrowers may be eligible for assistance from the Jefferson Parish Community Development Department if they have FHA, VA, and RHS loans. For more information, call 504-736-6262.
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