Southern Mortgage Assistance Program
Financial Assistance for Homebuyers in Louisiana
The Southern Mortgage Assistance Program offers residents a 30-year fixed rate home loan with a Down Payment Assistance (DPA) Grant. The assistance covers either 3 or 4 percent of the loan amount for borrowers of FHA, VA, or RHS loans, or 3 percent of the loan amount for homebuyers with a Freddie Mac HFA Advantage Loan.
- A minimum credit score of 640 or higher is required
- For an FHA, VA, or RHS loan the borrower's annual income cannot exceed $69,000. For a Freddie Mac HFA Advantage Loan, the borrower's annual income cannot exceed $99,000.
- Freddie Mac HFA Advantage Loan borrowers must be first-time homebuyers
- If the borrower is a first-time homebuyer, a Home Ownership Education Program must be completed to qualify for a Freddie Mac HFA Advantage Loan. Home Ownership Education is not required for an FHA, VA, or RHS loan.
- The residence being purchased must be located within the Parish of Jefferson.
- The acquisition cost of the residence cannot exceed the amount permitted by FHA ($271,050), VA ($417,000), RHS (no limit), and Freddie Mac's Advantage Loan ($417,000).
- The property must be a single family home, which includes a condominium unit, or townhouse and can be either a new or existing residence
- The home must serve as the borrower’s primary residence
- Duplex, multi-unit, recreational, seasonal, vacation, or investment homes are not permitted in any program
- Manufactured housing is not eligible for the Freddie Mac HFA Advantage Program
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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