Expand to Homeownership
Financial Assistance for Homebuyers in Louisiana
Along with fixed rate 30-year mortgages, this homebuyer assistance program provides eligible borrowers with a grant of up to 4 percent of the loan amount. Repayment is not required as long as borrowers occupy the home as their primary residence.
There are certain requirements that all applicants must meet to be considered eligible for the Expand to Homeownership Program. Borrowers must fall below the program's set income limits of $84,000 for FHA/VA loans or $99,000 for conventional loans. They must have a minimum credit score of 640 and a debt ratio no higher than 45 percent. The mortgage loan cannot exceed the maximum amounts of $271,050 for FHA loans or $417,000 for VA loans or conventional loans.
Homebuyer counseling is a requirement for participation in this grant program. Funding cannot take place unless counseling is completed prior to final loan approval. Organizations that are not certified by the Louisiana Homebuyer Education Collaborative are not approved to help you fulfill this requirement.
The purpose of this program is to make funds available to eligible applicants who are interested in purchasing a home but need financial help to pay the upfront costs, which include the down payment, as well as the closing costs and prepaid items required to obtain homeownership. These expenses can add up to a substantial amount, and the inability to pay it might keep people stuck in a renters trap.
(Note: All figures were accurate at the time of publication and may no longer be current - visit the program website for updated information.)
Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.
FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.
Down Payment Grants in Louisiana
The First-time Homebuyers Assistance Program, established and administered by the City of Kenner Department of Community Development, is designed to provide financial assistance to low, moderate, and median income households trying to purchase a home in the City of Kenner.
The Expand to Homeownership Program assists homebuyers in New Orleans with the upfront down payment and closing costs when purchasing a home. Repayment is not required if you, the borrower, occupy the home as your primary residence.
The Louisiana Housing Corporation offers residents the LHC Preferred Conventional Program, which offers favorable terms when compared to FHA loans. Additionally, the program provides up to 4% assistance for a down payment, closing costs, and/or prepaid items.
The Louisiana Housing Corporation offers the Market Rate GNMA Program in order to assist residents make the upfront costs of buying a home. Along with a 30-year, fixed rate FHA, VA or USDA Rural Development loan, the program offers homebuyers up to 4 percent assistance for down payment, closing costs, and/or prepaid items.
With the City of Shreveport’s Home Buyers Assistance Program Participation Initiative (HAPPI), first-time homebuyers can access down payment, buy down, and closing cost assistance through participating local lenders.
With the Southern Mortgage Assistance Program, The Jefferson Parish Finance Authority offers residents a 30-year fixed rate mortgage with a Down Payment Assistance (DPA) Grant. The assistance covers either 3 or 4 percent of the loan amount for borrowers.
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