Buying a home in Louisiana as a low to moderate income first time home buyer is possible because of the Louisiana Housing Finance Agency and their first time home buyer home loan programs. These programs are designed to provide eligible home buyers with long term fixed rate low interest rates, closing cost and down payment assistance, as well in some cases monthly mortgage payment assistance for those homebuyers who need extra assistance.
Mortgage Loan Programs For First Time Home Buyers In Louisiana
The Louisiana Housing Finance Agency working in conjunction with participating lenders across Louisiana offer a variety of loan programs for first time home buyers in any part of the state, or for certain home buyers in special targeted areas of the state. Eligible home buyers will have to meet income limits as well as be able to qualify for an FHA, VA, Rural Housing or a Conventional Fannie Mae or Freddie Mac mortgage to take advantage of LHFA’s mortgage programs.
Also, there are property price limits in effect for all Parishes in Louisiana although since Hurricanes Katrina and Rita these limits have been expanded in most areas of Louisiana. Also since these hurricanes in 2005, there are different interest rate loan, closing and downpayment assistance programs available that are determined by location, property damage, income and other factors. Check with your participating lender for expanded income and property price requirements.
Is There Monthly Payment Assistance Available in Louisiana?
There is a monthly mortgage payment assistance program available to eligible low income home buyers in Louisiana. Eligible home buyers may be able to receive up to 2% of the interest rate payment each month to help offset the expense of mortgage insurance in the case where a home buyer has a first mortgage that exceeds 80% of the home’s purchase price.
Can I Get Down Payment Assistance To Buy A Home In Louisiana?
If you are a low income first time home buyer in Louisiana you may be eligible to receive money to help with closing costs and down payment to buy a home. The Louisiana Housing Finance Agency (LHFA) offers this money for downpayment and closing cost assistance through several programs including its American Dream Downpayment Initiative. There are also the Mortgage Revenue Bond Assisted and Unassisted programs. Program eligibility is based on the income levels of prospective home buyers, as well as whether a home buyer has enough money of their own for down payment and closing costs.
The highlights of these programs are:
- The money for the closing costs and downpayment assistance is given in the form of a second mortgage that does not have a monthly payment and if you keep the home for 5 years the loan is forgiven.
- A home buyer can use this program if they are buying a single family single unit home, new and double wide mobile homes (minimum square footage and dimensions apply as well as estimated life of the dwelling), a condo or a townhome.
- Must be a first time home buyer to use this program unless the home buyer is purchasing a home in an economically or developmentally targeted area. Since Hurricanes Katrina and Rita many parishes within Louisiana have relaxed the first time home buyer requirement. Check with a participating lender for your eligibility.
- Home buyers must meet certain income and home price limits in all areas of Louisiana except in economically and developmentally targeted areas. Since Hurricanes Katrina and Rita many parishes within Louisiana have expanded the income and home price requirements. Check with a participating lender for your eligibility.
- Home buyer must be using the home as their primary residence.
What Other Home Purchase Mortgage Programs Are There In Louisiana?
There are many programs available at the local city, town and parish levels. It is best to check with your mortgage lender to see what options are available to you in your area and based on your economic situation. Here is a brief list and description of some additional programs available through LHFA:
- Rural Housing Development Program – This loan program provides up to $14,999 for those home buyers interested in buying a home in rural areas of Louisiana. This program does have home price as well as maximum income restrictions. You must also be a first time home buyer to be eligible for this program as well as be able to qualify for a mortgage through a participating lender.
- Louisiana Certified Teacher Assistance Program – If you are a Louisiana certified teacher wanting to buy a home in Louisiana you may be able to take advantage of this program. Eligible teachers can get below market interest rate mortgages as well as down payment and closing cost assistance of up to 4% of the first mortgage amount. Household income limits as well as home price limits apply so check with a participating lender for further details.
To get additional information about down payment assistance programs, or to find out more about mortgage programs please complete the information below:
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