Unlocking Homeownership: Down Payment Assistance and Loan Programs in Louisiana

Dreaming of owning a home in New Orleans, Metairie, or anywhere in the Greater New Orleans area? You are not alone. For many first-time buyers, the biggest hurdle is coming up with the down payment and figuring out which loan programs are available. The good news is that Louisiana offers a variety of down payment assistance and homebuyer loan programs designed to make homeownership more accessible and affordable—especially in Orleans and Jefferson Parishes. Let’s explore what is out there and how you can take advantage of these opportunities.

Why Down Payment Assistance Matters

For most buyers, the down payment is the single largest upfront cost in the homebuying process. Saving up 10-20% of a home’s price can feel overwhelming, especially with rising rents and other expenses. Down payment assistance (DPA) programs are designed to help bridge that gap, making it possible to buy sooner than you might think.

Statewide Programs in Louisiana

• Louisiana Housing Corporation (LHC) Programs: The LHC is the main state agency offering assistance to homebuyers. Their programs include:
• LHC Market Rate GNMA Program: Offers competitive interest rates and up to 4% assistance for down payment and closing costs. Available to first-time and repeat buyers who meet income and purchase price limits.
• LHC Mortgage Revenue Bond (MRB) Program: Designed for first-time buyers, this program provides below-market interest rates and up to 4% assistance for down payment and closing costs. Income and purchase price limits apply.
• Delta 100 Program: For buyers in targeted parishes (including parts of Jefferson Parish), this program offers 100% financing with no down payment required for eligible buyers. Great for low-to-moderate income households.
• Soft Second Program: Offers a forgivable second mortgage to cover down payment and closing costs for eligible buyers, with special focus on New Orleans and surrounding areas.
• Other Statewide Options: Some lenders offer their own grant or assistance programs, so always ask your lender if they participate in additional offerings that might help you.

Local Programs: Spotlight on Greater New Orleans

• City of New Orleans Soft Second Mortgage Program: This popular program provides up to $65,000 in down payment and closing cost assistance for eligible first-time homebuyers purchasing in Orleans Parish. The amount depends on household income and the price of the home. The loan is forgivable after a set period of occupancy as your primary residence.
• Jefferson Parish First Time Homebuyer Assistance Program: Offers up to $50,000 in down payment and closing cost assistance to qualified buyers purchasing in Jefferson Parish. Income limits and other eligibility requirements apply, and the assistance is provided as a forgivable loan if you stay in the home for a certain number of years.

Who Qualifies for Assistance?

Each program has its own eligibility rules, but here are some common requirements:

• Income limits based on household size
• Purchase price limits for the home
• Must use the home as your primary residence
• Completion of a HUD-approved homebuyer education course
• Some programs require you to be a first-time homebuyer (defined as not owning a home in the past three years), while others are open to repeat buyers

Homebuyer Loan Programs to Know

• FHA Loans: Backed by the Federal Housing Administration, these loans allow for down payments as low as 3.5% and have flexible credit requirements. Many DPA programs can be used in conjunction with FHA loans.
• VA Loans: For eligible veterans and active-duty military, VA loans offer zero down payment and no private mortgage insurance. A fantastic option for those who qualify.
• USDA Rural Development Loans: If you are buying in certain areas of Jefferson Parish or on the outskirts of New Orleans, you may qualify for a USDA loan with zero down payment and low interest rates.
• Conventional Loans: Some conventional loans allow down payments as low as 3%, and there are special programs for first-time buyers that can reduce mortgage insurance costs.

How to Get Started

1. Talk to a Local Lender: Not all lenders participate in every program, so choose one with experience in Louisiana DPA and homebuyer programs.
2. Complete Homebuyer Education: Most assistance programs require you to complete a certified homebuyer course. This is a great way to learn about the process and set yourself up for success.
3. Gather Your Documents: Be prepared to show proof of income, tax returns, bank statements, and other documents as part of your application.
4. Work with a Knowledgeable Agent: Your agent can help you identify eligible properties and guide you through the process from start to finish.

Tips for Success

• Start early. Some programs have limited funds or application windows.
• Be honest about your finances. The more accurate your information, the better your lender and agent can assist you.
• Stay organized. Keep all your paperwork in one place and respond quickly to requests from your lender or agent.

Final Thoughts

Homeownership in Louisiana is within reach thanks to a wide range of down payment assistance and loan programs. With a little research and the right team, you can unlock the door to your new home sooner than you think. If you have questions or are ready to get started, I am here to help every step of the way.

Richard W. Hébert
Advisor, Engel & Völkers New Orleans
Phone: 504-617-5184
Email: richardw.hebert@engelvoelkers.com
Website: richardhebertrealtor.com