3 First-Time Homebuying Assistance Programs in Louisiana
With home prices rising and the number of properties for sale declining, it can be challenging to buy a home in Louisiana, especially for first-time homebuyers. Fortunately, Louisiana provides different homebuying programs for low- and medium-income residents that can help you break into the Pelican State’s housing market.
That being said, here are three homebuying assistance programs available for first-time homebuyers in Louisiana:
LHC Mortgage Revenue Bond Programs
Louisiana Housing Corporation’s (LHC) Mortgage Revenue Bond programs enable first-time homebuyers with down payment and closing cost assistance. Typically, this includes the:
Mortgage Revenue Bond Assisted Program: You can receive assistance of up to 4% of your mortgage to cover the down payment or closing costs.
Mortgage Revenue Bond Home Program: Entails a 5%-9% grant with no interest or repayment.
For both programs, you should complete a homebuyer education course and have a minimum credit score of 640. Moreover, the home you’re buying should be in Louisiana, shouldn’t exceed $271,164 in price, and should be your primary residence.
LHC Market Rate GNMA Program
The Market Rate GNMA Program enables homebuyers to get 30-year fixed-rate FHA, VA, or USDA home loans with a low interest rate. You can also receive 4% of your mortgage as a loan to cover closing costs and down payment. To qualify for the program, you should have a credit score of at least 640 and an income below 115% of the area median income (AMI).
Capital Area Finance Authority (CAFA)
CAFA is a homebuying program available for first-time homebuyers in Louisiana. The grant is designed to assist with down payment and closing costs. It can range from 4% to 7% based on which program and lender you use, and to qualify for the grant, you should have a credit score of at least 640, a DTI ratio of less than 50%, and you should meet the income limit (often 80% of the Parish Median Income Limit).
Need Help Buying Your First Home in Louisiana?
Louisiana has a wide range of homebuying assistance programs. And if you’re eligible for them, you could be a homeowner sooner than you imagine. To find your dream home in Louisiana, feel free to get in touch with us today! With our vast expertise in the homebuying process and the Louisiana housing market, we’ll help you find a home that fits your preference and budget!