Market Rate GNMA Program
Financial Assistance for Homebuyers in Louisiana
Along with a 30-year, fixed-rate FHA, VA or USDA Rural Development loan, the program offers homebuyers assistance funds up to 4 percent of the total purchase price, which can be put toward covering the down payment, closing costs, and/or prepaid items. There are no origination or discount fees associated with this program.
In order to receive benefits under the Market Rate GNMA Program, all applicants must meet certain requirements. Unlike most programs, this one is not exclusive to first-time homebuyers. However, all applicants must fall under the program's income limit: 115 percent of the area median income. They must also have a minimum credit score of 640 to be considered eligible.
Any home being purchased with Market Rate GNMA Program funds must be single-family housing (one-unit principal residence) and be located in Louisiana.
Choosing a Lender
The program is partnered with many lenders for a borrower to choose from and has instructions for applicants when deciding which one is the best for their situation.
- Select the lender
- Confirm pre-qualification
- Make an appointment to be pre-qualified for a mortgage loan utilizing the Market Rate GNMA Program.
- Meet with a lender to complete the loan application process, give them permission to pull a credit report, and to get help determining which loan product is most suitable (FHA, VA, or Rural Development).
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but States and Local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price and income limits.
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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