Louisiana Down Payment Assistance

Louisiana Down Payment Assistance Programs

A guide to current down payment assistance options in Louisiana, including the state Housing Finance Agency, well-known city and county programs, and live DPA mortgage pricing for Louisiana homebuyers.

Louisiana Housing Finance Agency

Louisiana Housing Corporation (LHC)

www.lhc.la.gov/

LHC administers the primary DPA programs for Louisiana. Program details below are current as of October 17, 2026 - confirm current terms directly with LHC before applying.

Statewide DPA Programs in Louisiana

HomeStart Advantage

Louisiana Housing Corporation

Forgivable second

4% of the first mortgage amount as a 0% interest second mortgage, fully forgiven after 60 months if program requirements are met.

Paired with: FHA, VA, USDA, Conventional

  • First-time homebuyer: Not required
  • Primary residence only
  • Minimum FICO: 640
  • Maximum DTI: 50%
  • Income: Household income up to $125,000.
  • Homebuyer education required

Statewide. Not limited to first-time homebuyers, but the borrower may not own another residence at closing. Purchase price may not exceed the FHA loan limit. 660 minimum credit score for manufactured homes. Replaced the former Keys for Service program in September 2026.

Source: www.lhc.la.gov

HomeStart Assist

Louisiana Housing Corporation

Forgivable second

4% of the first mortgage amount as a 0% interest second mortgage, fully forgiven after 60 months if program requirements are met. Paired with a 30-year fixed bond-financed first mortgage.

Paired with: FHA, VA, USDA, Conventional

  • First-time homebuyer: Required
  • Primary residence only
  • Minimum FICO: 640
  • Maximum DTI: 50%
  • Income: FHA, VA, and USDA: up to 115% of area median income (140% in targeted areas). Conventional: up to 80% of area median income.
  • Homebuyer education required

First-time homebuyer requirement waived for eligible veterans and in targeted areas. MRB purchase price limits apply. Federal recapture tax may apply if sold within 9 years. Replaced the former MRB Assisted program in September 2026.

Source: www.lhc.la.gov

HomeStart Plus

Louisiana Housing Corporation

Forgivable second

Up to 20% of the purchase price (max $55,000) as a 0% interest second mortgage forgiven monthly over 10 years, plus up to $5,000 in closing cost assistance.

Paired with: FHA, VA, USDA, Conventional

  • First-time homebuyer: Required
  • Primary residence only
  • Minimum FICO: 640
  • Maximum DTI: 48%
  • Income: Household income at or below 80% of area median income.
  • Homebuyer education required

Only in designated parishes affected by Hurricanes Laura, Delta, or Ida. Properties in flood zones A, AE, or V are not eligible. Borrower must contribute the greater of 1% of the price or $1,500. Replaced the former Pathways program in September 2026.

Source: www.lhc.la.gov

Resilience Soft Second Mortgage Program

Louisiana Housing Corporation

Forgivable second

Soft second mortgage of 20% of the purchase price up to $55,000, plus up to $5,000 for closing costs (up to $60,000 total). Forgiven if the home is occupied for the full 10-year term.

Paired with: Conventional, FHA, VA, USDA

  • First-time homebuyer: Required
  • Primary residence only
  • Income: Household income at or below 80% of area median income.

Limited to Gustav/Ike and Isaac designated parishes; properties cannot be in a flood zone. Income and purchase price limits apply. Confirm current funding with LHC.

Source: www.lhc.la.gov

Major City & County Programs in Louisiana

New Orleans Direct Homebuyer Soft Second Mortgage Assistance Program

City of New Orleans, Office of Community Development · New Orleans, LA

Forgivable second

Soft second mortgage up to $55,000 toward the gap between purchase price and the first mortgage, plus up to $5,000 in closing cost assistance (no more than 50% of total closing costs); 0% interest with no monthly payments. Forgiven after 10 years of continuous owner occupancy.

First-time homebuyers (or no homeownership in last 3 years); household income at or below 80% of area median income; HUD-approved homebuyer education required. Maximum sales price in Orleans Parish is $324,000. CDBG-funded; confirm funding availability with the City.

Source: nola.gov

Louisiana Notes for Homebuyers

  • Louisiana is a civil-law jurisdiction; mortgages are recorded as acts of mortgage. Closings are typically handled by a notary. Confirm parish-level recording fees and transfer taxes.

2026 Loan Limits in Louisiana

Conforming (Conventional)

$832,750 baseline

FHA

$541,287

Standard FHA limit, applies to most Louisiana counties.

Live DPA Pricing for Louisiana

Pricing below is sourced live from hundreds of wholesale lenders for a Louisiana scenario. Edit the inputs to match your situation.

FHA Down Payment Assistance

Up to 5% assistance; repayable second at first rate + 2% over 10 years

Min FICO 580
▸Program details
  • ✓Minimum credit score: 580
  • ✓Non-traditional credit also possible
  • ✓Assistance up to 2.5%, 3.5%, or 5% of the lesser of purchase price or appraised value
  • ✓Assistance can be used for down payment, closing costs, or both
  • ✓Second lien: 10-year fixed, repayable
  • ✓Second lien rate is 2% higher than the first mortgage rate
  • ✓No first-time homebuyer requirement
  • ✓No income cap
  • ✓Purchase of primary residence only
  • ✓Eligible properties: 1-unit residences, PUD, 2-4 units, FHA-approved condos, manufactured (single/double-wide)
  • ✓DTI per AUS and FHA manual underwriting guidelines
  • ✓First lien: FHA 30-year fixed

Assistance amount

1st lien: $386,000 at 96.5% LTV (FHA)
2nd lien: $14,000 (10-yr fixed, 1st rate + 2%)
The assistance is a second loan repaid monthly over 10 years. Any remaining balance is paid off if the home is sold or refinanced. Pricing estimate only - final rates, fees, and eligibility may vary.
Program details on this page are compiled from official Louisiana Housing Finance Agency and local government sources and were last verified on October 17, 2026. Program availability, funding, eligibility thresholds, and assistance amounts change frequently. Always confirm current terms directly with the administering agency before applying. This page is informational only and is not an offer to lend.

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