LHC Preferred Conventional Program
Financial Assistance for Homebuyers in Louisiana
The LHC Preferred Conventional Program helps homebuyers meet upfront costs by providing assistance funds up to 4%of the total purchase price, which can be used for covering all or some of the down payment, closing costs, and/or prepaid items.
Unlike most down payment assistance programs, the LHC Preferred Conventional Program is not exclusive to first-time homebuyers. However, there are other requirements that must be met by all applicants. They must all fall within the program's maximum income limit of $99,000 and have a credit score of at least 640. Additionally, first-time homebuyers are responsible for completing a homebuyer education course.
Any home being purchased under the LHC Preferred Conventional Program must be an owner-occupied, single-family housing (1-2 unit principal residence). The loan-to-value ratio for a one-unit property is 97%, and 95% for a two-unit.
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.
*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.
(Note: These 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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