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Louisiana Assistance Programs

Are you a first-time home buyer in Louisiana dreaming of owning your home in the scenic landscape or an existing homeowner looking to refurbish your property? Are you eager to unlock the door to your haven and commence the next chapter? Total Mortgage holds the key to making it happen!Discovering Louisiana's best down payment assistance in a thriving property market can feel like ciphering a riddle. But fear not! Our specialists are here to steady your course, navigating the unpredictable avenues of purchaser financings with dexterity.Allow us to shoulder the weight. Our experts will research and compare rates and find the most advantageous grants for first-time home buyers in Louisiana, ensuring your quest for property ownership is a winding yet welcoming path.

If you have any questions about securing the best mortgage rates in Louisiana, please contact us today. We are here to assist you in finding the mortgage rates that best suit your needs.

Louisiana first-time homebuyer loan programs

LHC Mortgage Revenue Bond programs

Louisiana Housing Corporation's Mortgage Revenue Bond programs aim to assist first-time buyers, classified as those who have not owned a home in over three years, with financing options for down payments and closing costs.

There are two avenues for support:

  • The Mortgage Revenue Bond Home program offers a 5-9% grant without interest or repayment requirements.
  • Alternatively, the Mortgage Revenue Bond Assisted program provides a forgivable 4% zero-interest, zero-payment second Mortgage over three years.
  • Both require a minimum credit score of 640

The purchased home must be located in Louisiana, serve as the primary residence, and be priced below $349,525 (though other location-based limits may apply). Eligible properties include single-family houses, condominiums, townhouses, modular structures, and manufactured housing, which are permitted as double-wide for FHA loans.

Income qualifications for the Mortgage Revenue Bond Home program require income at or under 80% of the area median income. For the Assisted option, earnings can range from 115% to 140% of the area median income, depending on the loan type, household size, and whether the home resides in a targeted area.

LHC Delta 100 Program

The LHC's Delta 100 Program offers parish-specific first-time home buyer grants in Louisiana for people struggling with credit issues. Qualified buyers can obtain full funding with an unusually low 2% interest rate and no mortgage insurance fees. The program also reduces closing costs by up to 3%.

The down payment assistance Louisiana initiative exclusively serves single-family home purchases across 11 designated Delta parishes in Louisiana.

These include:

  • Caldwell
  • Catahoula
  • Concordia
  • East Carroll
  • Franklin
  • Madison
  • Morehouse
  • Pointe Coupee
  • Richland
  • Tensas
  • West Carroll

Properties are capped at $242,000 in value. Household income qualification rests on falling under the 80% area median income threshold. Applicants must also contribute a minimum down payment of 1% of the home price or $1,500, whichever is less, from personal savings. Completing pre-purchase counseling is an additional requirement.

Louisiana Down Payment Assistance

LHC Resilience Soft Second Program

LHC's Resilient Home Financing program provides prospective homeowners with assistance, bridging the gap between a home's purchase price and budget. Such grants for first-time home buyers in Louisiana offer eligible buyers up to $60,000 total. A second loan up to 20% of the purchase price not exceeding $55,000, plus closing cost assistance up to $5,000, is also available. Should the home serve as the buyer's primary residence for a decade, the entire 20% secondary loan is forgiven.

Applicants must possess specific qualifications:

  • First-time buyers or those who have not owned for at least three years, including single parents who previously co-owned solely through marriage or 'displaced homemakers' who co-owned only with an ex-spouse.
  • LHC criteria state that income cannot exceed 80% of the regional median income.
  • Properties must reside in one of 51 participating Louisiana parishes and outside flood zones.

New Orleans Direct Soft Second Mortgage Assistance Program

The New Orleans Office of Community Development offers enticing grants to first-time home buyers in Louisiana. Through their program, buyers can secure up to $55,000 as a second mortgage on a single-family abode plus an additional $5,000 for closing expenses - interest and payment-free. Rather than a traditional loan, it is a forgivable grant if the property serves as the recipient's primary residence for ten years.

For the first-time home buyer Louisiana qualifications, the applicant's household income must fall below 80% of the region's Median Area Income. Approval of a first mortgage through a partner lender is also compulsory. Finishing a tutorial administered by organizations like the HUD Housing Counseling Agency rounds out the criteria.

Other Louisiana first-time homebuyer loan programs

FHA Loans

An FHA mortgage, insured through the Federal Housing Administration, caters to those with imperfect credit histories or who fail to meet standard lending qualifications. Such loans can finance both the purchase and construction of a home. While the government ensures these mortgages are against default, they are accessible through central banks and independent loan providers approved to issue FHA-backed deals.

VA Loans

VA home loans stand as another significant selection for active military personnel or veterans who qualify. Guaranteed under the auspices of the United States Department of Veterans Affairs, these mortgages facilitate the acquisition of a primary residence. Numerous advantages accompany VA financing, such as not necessitating down payments or private mortgage insurance. What's more, the interest rates affiliated typically undercut competing offers. One obtains a VA loan directly from a mortgage lender, not the VA itself.

USDA Loans

Aimed at first-time buyers in designated rural parts, the United States Department of Agriculture provides loans requiring no down payment. Intended for low-to-moderate income individuals failing to meet conventional lending prerequisites, these mortgages incorporate income ceilings changing by location. Additionally, upfront and annual costs tie in with a USDA loan instead of a standard loan.

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