Are you thinking of buying your first home in Louisiana? Would you like to know about programs that are available to help you purchase that first home? The state of Louisiana provides programs for its residents who are first time home buyers and need help with the down payment and closing costs. Additionally, there is Federal Grant money available as well as grants from private foundations and non-profit corporations. This is free money that shouldn’t be passed up! The amount of financial assistance can be in the thousands of dollars. It will be well worth your time to educate yourself about the incentive programs that are available in Louisiana.
Louisiana Housing Corporation offers a number of opportunities for low and moderate income Louisiana families to realize their dreams of owning a home through its First-Time Homebuyer Program.
The program offers a variety of 30-year, fixed-rate mortgages, some at below market interest rates to potential homebuyers. LHC’s current 2012A Program offers a four-tiered interest rate structure. From their website:
“The HOME/MRB Program provides assistance to first-time homebuyers whose annual income does not exceed 80% of the median income (adjusted for family size) in the parish in which the property being purchased is located. The interest rate for the HOME/MRB Program is 2.45% for a 30-year FHA, RD or VA loan. Assistance Payments equal to 4.5% to 9.0% of the Mortgage Loan Amount will be paid at closing to cover part of the down payment, closing costs and prepaid items. The amount of the grant will vary with the size of the loan. Loans will be reviewed to assure that the amount of closing costs is reasonable and customary. ”
Local Programs Throughout Louisiana
In addition to the grant programs described above, the U.S. Department of Housing and Urban Development provides home buyer assistance and grants in every state. There are multiple grant programs designed specifically for people that meet certain requirements, such as grants for people with disabilities so they can continue to live independently at home. It is worth visiting HUD’s website to see what assistance is currently available. For your convenience, simply go to this page.
Here is the contact information for the HUD office in Louisiana:
New Orleans Field Office
Hale Boggs Federal Building
500 Poydras Street
New Orleans, LA 70130
Phone: (504) 671-3000
Fax: (504) 671-3751
There are also these local programs:
Baton Rouge Community Development Homebuyer’s Assistance Program
“The Homebuyer Assistance Program enables a qualified homebuyer in obtaining an affordable first mortgage loan through a private lender such as banks, savings, and loan or mortgage companies. HAP provides a no interest second mortgage loan of $20,000 that may be applied toward down payment and/or closing costs. This loan is deferred (that is, no payment required) for 20 years. At the end of 20 years, the loan is repaid over up to 10 years. If, however, you choose to sell the property, the second mortgage is due upon sale of the property. At any time the original homebuyer no longer occupies the house as the principal residence, the loan is due in full. Minimum downpayment required of the borrower is 3% of the purchase price, which must be at or below the appraised value of the property. Interest rates and terms of the private lender will be set by each lender.”
Jefferson Parish Homebuyer Assistance Program (HAP) (504) 736-6267
“The following questions must be answered with a “Yes” response, supported with appropriate documentation, in order for a potential First-time Homebuyer to be deemed eligible to submit a funding application for consideration of receiving financial assistance for participation in Jefferson Parish’s First-time Homebuyer Assistance Program.
1. As a first-time homebuyer, I/we have not owned a home in the last three (3) years.
____ (YES) _____ (NO); If “No” please explain:
2. Have you completed a First-time Homebuyer Training Class and a Financial Fitness Training Class
within the last two years? _____(YES) _____(NO)”
Lafayette First Time Home Buyer & Closing Costs Revolving Loan Fund Program (FTHBP) (337) 291-8433
“The Lafayette Consolidated Government and the Lafayette Public Trust Financing Authority offer a Down Payment and Closing Costs Revolving Loan Fund Program to assist qualified home buyers obtain an affordable first mortgage loan through a FHA-approved private lender.
The program will provide a 5% interest loan up to $5,000 which may be applied toward down payment and/or clos-ing costs. This loan is secured with a second mortgage.”
Monroe Housing Authority Homeownership Program (318) 388-1500
“This program provides low-to-moderate income families technical and financial assistance to become home owners. Call 318-388-1500 for class schedules. Classes are held three times each year.”
New Orleans Neighborhood Housing Services Down payment and Closing Cost Assistance Program (DCCA) (504) 899-5900
“As an NHS customer, you may be eligible for a variety of special programs which are designed to help ease the costs of homeownership. Examples of these special programs include:
• Zero- and low-interest down-payment and closing cost loans
• Special assistance programs for various professions (teachers, first responders, etc.)
• Matching funds through Individual Development Account programs
• Soft Second funds for Orleans and Jefferson Parish home purchases
Not all programs are available at all times, but your counselor will know which programs are available and whether you qualify for the program. ”
New Orleans PRIDE Down Payment & Closing Cost Assistance Program (504) 524-5533
- “Financial Planning and Assistance
- Down-payment Assistance
- Elderly Tax Information
- Financial Education
- Foreclosure Prevention Training
- IDA Savings Program
- Reverse Mortgage
- Tandem Lending
- Housing Programs and Home Ownership Counseling
- Home Ownership Center
- Home Ownership Counseling
- HomeBuyers Club
- Housing for Elderly
- Housing for Veterans
- Section 8 Housing”
Orleans Parish Central City Housing Development Corporation TANF Home Ownership Assistance Program (TANF) (504) 522-4273
Shreveport Homebuyers Assistance Program Participation Initiative (HAPPI) (318) 673-7503
“The Homebuyer’s Assistance Program Participation Initiative (“HAPPI”) is designed to provide assistance through approved private lenders to assist homebuyers whose income thresholds are 80% or below the median income level as determined by HUD for the City of Shreveport.
The program will assist with down payments, rate buy-down assistance and principal reduction, and closing costs for qualified home buyers who purchase existing properties or newly constructed homes in one of the sixteen(19) Targeted Neighborhoods or three (3) specified Transitional Neighborhoods, Highland, Sunset Acres, and Cherokee Park, as determined by HUD for the City of Shreveport. ”