First-Time Home Buyer Programs in Louisiana

Louisiana Housing Corporation (LHC) Programs:

LHC Choice Program:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years), veterans, or buyers in federally designated targeted areas.
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with down payment assistance options up to 6% of the purchase price as a second loan (0% interest, repayable upon sale or refinance).
Requirements:

• Income must not exceed county-specific limits (e.g., $99,440 for a 1-2 person household in East Baton Rouge Parish as of 2025).
• Minimum credit score of 640 (varies by loan type).
• Debt-to-income ratio capped at 45% (50% with higher scores).
• Homebuyer education course required for first-time buyers.
• Purchase price limit of $349,525 (non-targeted areas) or $427,198 (targeted areas).

Delta 100 Program:

Benefits: Offers 100% financing (no down payment) with a 30-year fixed-rate conventional mortgage; includes 3% closing cost assistance as a grant; aimed at low- to moderate-income first-time buyers.
Eligibility: Income must be at or below 80% of area median income (e.g., $59,300 for a family of four in most parishes); must use an LHC-approved lender.

Resilience Soft Second Program:

Description: Provides up to $60,000 as a forgivable second loan (0% interest, forgiven after 10 years) for down payment, closing costs, and resilience upgrades (e.g., flood-proofing); targets first-time buyers in specific parishes.
Requirements: Income capped at 120% AMI; must pair with an LHC first mortgage; limited to disaster-impacted areas.

Local Programs:

New Orleans

Soft Second Mortgage Program: Offers up to $55,000 as a forgivable loan (forgiven after 10 years) for down payment and closing costs; income must be below 80% AMI (e.g., $52,750 for a family of four); buyer must contribute $1,000 minimum.

Baton Rouge

Capital Region Homebuyer Program: Provides up to $20,000 as a deferred loan (0% interest, due upon sale or refinance) for first-time buyers; income must be at or below 80% AMI; homebuyer education required.

Shreveport

First-Time Homebuyer Assistance: Offers up to $10,000 as a forgivable loan (forgiven after 5 years) for down payment and closing costs; income limited to 80% AMI; targets low-income neighborhoods.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 40% of annual mortgage interest (max $2,000 yearly) for first-time buyers; fee of $800 applies; combinable with LHC loans.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural Louisiana parishes; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military.