Louisiana First-Time Home Buyer Programs 2026
Louisiana Housing Corporation HomeStart programs, how much down payment assistance each one offers, the income and purchase price limits that apply in your parish, and the step-by-step path from homebuyer education to closing.
Louisiana HomeStart Programs
Louisiana’s first-time buyer assistance runs through the Louisiana Housing Corporation under the HomeStart name. Four programs sit under that umbrella, and they differ mainly in how much help they give and who qualifies.
| Program | Assistance | Who it is for |
|---|---|---|
| HomeStart Ready | None currently offered (rate-only first mortgage) | The broadest option. Available in all Louisiana parishes, and repeat buyers are eligible — first-time status is not required. |
| HomeStart Assist | 4% of the mortgage amount | First-time buyers (waived for eligible veterans and targeted areas). Fully forgiven after 60 months. |
| HomeStart Plus | 20% of the purchase price up to $55,000, plus up to $5,000 toward closing costs — up to $60,000 total | The largest award, for households at or below 80% of area median income. First-time buyers only; limited to 47 hurricane-affected parishes; properties in flood zones A, AE and V are not eligible. |
| HomeStart Advantage | 4% of the final first mortgage amount | Household income up to $125,000; first-time status not required; fully forgiven after 60 months. LHC describes the audience but does not publish the assistance amount or eligibility figures. |
LHC defines a first-time homebuyer three ways: someone with no ownership interest in a principal residence in the three years ending on the purchase date; a single parent who owned only with a former spouse while married; or a displaced homemaker who owned only with a spouse. Meeting any one of the three qualifies.
How the Down Payment Assistance Works
HomeStart assistance is a 0% interest forgivable second mortgage; the HomeStart Plus closing-cost portion is a grant of up to $5,000. What differs is how it is forgiven.
- HomeStart Ready — no assistance is currently offered; it is a rate-only first mortgage.
- HomeStart Plus — forgiven at 1/120 per month over 10 years of continued owner occupancy.
- HomeStart Assist and HomeStart Advantage — fully forgiven at the end of 60 months if occupancy requirements are met.
HomeStart Ready works with FHA, VA, USDA, Fannie Mae HFA Preferred and Freddie Mac HFA Advantage 30-year fixed first mortgages; maximum DTI is the lesser of 50% or the DU/LPA approval. One- and two-unit primary residences, townhomes and eligible condominiums qualify; three- and four-unit properties, manufactured and mobile homes, and vacation or second homes do not.
Income and Purchase Price Limits
Two different limits apply, and which one binds depends on the program and the loan type.
| Limit | Amount | Applies to |
|---|---|---|
| Purchase price, non-targeted area | $554,850 | HomeStart Assist (effective May 4, 2026) |
| Purchase price, targeted area | $678,150 | HomeStart Assist (effective May 4, 2026) |
| Purchase price | FHA loan limit | HomeStart Plus |
| Purchase price | Conforming loan limit | HomeStart Ready and HomeStart Advantage |
| Income | 115% of area median income (140% in targeted areas); 80% for conventional loans | HomeStart Assist |
| Income | 80% of area median income | HomeStart Plus |
| Income | $99,000 qualifying borrower income | HomeStart Ready |
| Income | $125,000 household income | HomeStart Advantage |
Parish-level income figures vary by program and household size. See the LHC lender guide (rev. September 10, 2026) and its linked limit documents for your parish.
Eligibility Requirements
Across the HomeStart programs, the common requirements are:
- A minimum credit score of 640 for all borrowers
- The property must be in Louisiana and must be your primary residence
- Completion of LHC’s homebuyer education requirement
- Household income and purchase price within the applicable limits for your parish
- A 30-year fixed-rate first mortgage through a participating lender
HomeStart Plus adds two restrictions the others do not have: household income at or below 80% of area median income, and the property cannot be located in flood zone A, AE or V.
Step-by-Step Buying Process
| Step | What happens |
|---|---|
| 1. Check your parish limits | Income and purchase price limits vary by parish and by loan type. Start there, because they determine which programs are open to you. |
| 2. Complete homebuyer education | Required for every HomeStart program. Do it early; it is a common cause of delayed closings. |
| 3. Find a participating lender | LHC programs are originated by approved lenders, not by LHC directly. |
| 4. Get pre-approved | The lender confirms the 640 score, your DTI and which HomeStart program fits. |
| 5. Shop within your limits | Keep the purchase price under the applicable cap, and check flood zone status if you are using HomeStart Plus. |
| 6. Reserve the assistance | Your lender reserves the funds through LHC’s administrator when you go under contract. |
| 7. Close | The assistance records as a second mortgage at closing. Keep the forgiveness schedule with your closing documents. |
