First-Time Homebuyer Programs in Louisiana

Down Payment Assistance Programs

• LHC Market Rate GNMA Program. LHC's below-market 30-year fixed-rate first mortgage for first-time buyers (and repeat buyers in federally targeted areas), available with FHA, VA, or USDA-RD underwriting (Ginnie Mae-backed). Market Rate GNMA is the standard LHC first mortgage product and is compatible with LHC Soft Second, MRB DPA, the City of New Orleans Soft Second, and East Baton Rouge Parish DPA. Buyers must meet LHC income and purchase price limits and complete a homebuyer education course before closing.
• LHC MRB Home and MRB Assisted. Mortgage Revenue Bond programs reserved for buyers at or below 80% of area median income. MRB Home provides a below-market 30-year fixed-rate first mortgage on its own; MRB Assisted bundles the same first mortgage with down payment assistance (typically 4% of the loan amount) structured as a grant or forgivable second. Income limits are stricter than Market Rate GNMA, but the rate and DPA structure are more accommodating for lower-income buyers.
• LHC Soft Second Program. Up to $55,000 in down payment and closing cost assistance, structured as a deferred soft second mortgage at 0% interest with no monthly payment - balance due on sale, refinance, or end of owner occupancy (with forgiveness phased in over a multi-year occupancy period in many parishes). Available in targeted parishes across Louisiana and paired with an LHC Market Rate GNMA or MRB first mortgage. The Soft Second is the deepest statewide DPA in Louisiana and is specifically designed for buyers whose income and credit qualify them for an FHA, VA, or USDA loan but who cannot cover down payment and closing costs out of pocket.
• LHC Mortgage Credit Certificate (MCC). A federal tax credit equal to a percentage of the annual mortgage interest paid (capped at $2,000 per year), available to eligible first-time buyers using LHC financing. The MCC reduces federal income tax liability dollar-for-dollar each year for the life of the loan as long as the home remains the buyer's primary residence, effectively lowering the true cost of homeownership beyond what the interest rate alone reflects.

Income and Purchase Price Limits

LHC income and purchase price limits vary by parish, household size, and program (Market Rate GNMA, MRB Home/Assisted, and Soft Second each have their own limits). Income limits generally range from roughly $80,000 in lower-cost Louisiana parishes to $115,000+ in Orleans, Jefferson, and East Baton Rouge parishes for 1-2 person households on Market Rate GNMA, with MRB programs capped at 80% AMI for the parish. Purchase price limits typically fall in the $325,000-$425,000 range across most of the state. Always confirm current LHC income and purchase price limits with an LHC-approved lender or at lhc.la.gov before assuming eligibility.

City and Parish Programs Worth Knowing

New Orleans runs the largest single-city DPA program in Louisiana, built out of the post-Katrina housing investment infrastructure that rebuilt much of the city's affordable homeownership pipeline. East Baton Rouge Parish runs a parish-level program designed to stack with LHC's first mortgage products.

• City of New Orleans Soft Second Mortgage Program. Administered by the City of New Orleans Office of Community Development for income-qualified first-time buyers purchasing a primary residence inside Orleans Parish, the New Orleans Soft Second Mortgage Program can provide up to $55,000 in down payment and closing cost assistance. Structured as a deferred soft second mortgage at 0% interest with no monthly payment - balance forgiven over a multi-year owner-occupancy period (typically with the full balance forgiven after 10-20 years of continuous owner occupancy as the buyer's primary residence). HUD-approved homebuyer education required, and designed to stack with LHC Market Rate GNMA, MRB programs, and the statewide LHC Soft Second. The program reflects the long-term housing investment infrastructure built after Hurricane Katrina to support owner-occupied homeownership in New Orleans neighborhoods.
• East Baton Rouge Parish Down Payment Assistance Program. Up to $10,000 in down payment and closing cost assistance for income-qualified first-time buyers purchasing a primary residence inside East Baton Rouge Parish. Structured as a deferred or forgivable second mortgage with multi-year owner-occupancy requirements, HUD-approved homebuyer education required, and designed to stack with LHC Market Rate GNMA and MRB first mortgages. Funding cycles can exhaust mid-year - confirm availability with the East Baton Rouge Parish Office of Community Development before applying.

Both city/parish programs run on funding cycles that can exhaust mid-year, and homebuyer education must be completed before application - not after offer acceptance. The New Orleans Soft Second has a separate city agency review step that extends closing timelines by several weeks; plan that into the front of your timeline and confirm current funding availability with the administering agency before counting on it in your offer.

FHA Loan Requirements in Louisiana

FHA loans are widely used by Louisiana first-time buyers and are compatible with all LHC first mortgage products (Market Rate GNMA, MRB Home, MRB Assisted), the statewide LHC Soft Second, the City of New Orleans Soft Second, and East Baton Rouge Parish DPA. Across most of Louisiana, FHA loan limits use the standard single-family ceiling.

How to Apply

1. Confirm you have not owned a primary residence in the past three years for LHC Market Rate GNMA (waivers apply in federally targeted areas and for qualifying veterans; MRB programs require income at or below 80% AMI).
2. Check your credit score - 580 is the FHA minimum for 3.5% down, and LHC typically requires 640 or higher.
3. Review current LHC income and purchase price limits for your parish and the specific program (Market Rate GNMA, MRB Home/Assisted, Soft Second) at lhc.la.gov.
4. Decide which LHC program fits your profile: Market Rate GNMA for typical first-time buyers, MRB Home or MRB Assisted if you're at or below 80% AMI, and add the LHC Soft Second if your parish is targeted.
5. If you're buying inside Orleans Parish, contact the City of New Orleans Office of Community Development to confirm Soft Second Mortgage Program eligibility and current funding - the program is income restricted and funding can exhaust mid-year.
6. If you're buying inside East Baton Rouge Parish, contact the parish Office of Community Development to verify program availability and current funding.
7. Complete a HUD-approved homebuyer education course - required by LHC and by both city/parish programs.
8. Select an approved lender on both the LHC list and (if applicable) the relevant city or parish program's participating lender list.
9. Apply through your approved lender, who will coordinate the LHC application and the city or parish program submission simultaneously.

FAQ