There’s hardly a more exciting venture for Americans than purchasing a home for the very first time. If you are (or soon-to-be) a resident of Louisiana, there are many government and local incentives that can assist you during the first time home buyer Louisiana process.
What programs are available to first time home buyer Louisiana?
The Louisiana Housing Corporation offers two different programs to give low-to-moderate-income homebuyers the opportunity to achieve the American dream.
Market Rate GNMA Program
The Market Rate GNMA Program offers competitive 30-year fixed rate, FHA, VA, or USDA Rural Development mortgages. This program is only available for the purchase of a single-family housing until located in Louisiana. The household income can be up to 115 percent of the area’s median income. Those applying must have a minimum credit score of 640. Benefits of this program include up to 4 percent assistance with fees, such as down payment, closing costs, or prepaid items.
LHC Preferred Conventional Program
The LHC Preferred Conventional Program is ideal for first-time homebuyers at a higher income bracket. It allows a considerably higher loan value when compared to FHA loans. Those who are eligible may enjoy a competitive 30-year fixed rate mortgage with a maximum loan amount of $417,000. Of course, this program is limited to single-family homes located within the state of Louisiana. Applicants are allowed an income of up to $99,000. Benefits include no additional bond documents or compliance package required from the homebuyer. There are also no origination or discount fees. Those in the program can earn assistance up to 3 percent for down payments, closing costs, or any prepaid items. Homebuyers in the LHC Preferred Conventional Program may also enjoy reduced mortgage insurance.
Both programs offered by the Louisiana Housing Corporation may be eligible to first time home buyer Louisiana and those who have previously owned homes. However, those purchasing homes for the first time must complete homebuyer education from a list of sponsors throughout the state.
Does Louisiana offer new homebuyer counseling?
The state of Louisiana strives to prepare its residents for the homebuying process through education. Buying a home for the first time can be a complicated and confusing ordeal. That’s why the state features a range of first time home buyer Louisiana education classes to ready you for homeownership. These courses are directed towards getting new homebuyers in the mindset of making big financial and personal decisions related to homeownership in Louisiana.
These courses are designed to help you prepare for homeownership by:
- Teaching you how to save for a down payment or any necessary expenses
- Forcing you to closely examine your credit and credit history
- Determining whether you have what it takes to be a responsible homeowner
- Helping you develop a household budget
- Learning how to shop for a mortgage that suits you
Many of the state’s new homebuyer programs require that potential homeowners complete a series of workshops to be eligible. Such courses are available across Louisiana. You can find classes in your region by visiting the Louisiana Housing Corporation website.
What assistance programs are available to low-income applicants?
If your income is significantly below the level outlined for the LHCÂ homebuyer programs, you may be eligible for other incentives.
Section 502 Direct Loan Program
First-time homebuyers who live in rural areas–with populations less than 35,000–may be eligible for the Section 502 Direct Loan Program. This program helps very low- and low-income families find safe and sanitary housing in rural areas. Those in the program may receive a subsidy that decreases their mortgage payment for a short period of time.
Eligible applicants must have income that meets or is below the low-income criteria for the given area. Applicants must also express a willingness and ability to repay the debt. Qualifying properties must be 1,800 square feet or less and not have a  market value higher than the applicable area loan limit. Such properties cannot have in-ground swimming pools or be designed for income-producing activities.
The Fuller Center for Housing – NWLA
Those who dream of owning a home but are limited due to financial circumstances may qualify for a home through Fuller NWLA. The Fuller Center for Housing constructs homes to help pull impoverished residents out of their dire situations and offer a brighter future for their families.
To be considered, applicants for Fuller NWLA must be unable to receive a conventional home loan or mortgage.  If chosen, applicants must volunteer 350 hours doing the new home construction, other Fuller Center projects, administrative tasks, volunteering with other approved non-profits, or completing mandatory homeownership and credit counseling classes.
Are you or someone you know a first time home buyer Louisiana? Check out the wide selection of incentive programs available in your state so that you can make the most out of the new homeownership investment.
2 Point Highlight
The Louisiana Housing Corporation offers two different programs to give low-to-moderate-income homebuyers the opportunity to achieve the American dream of owning a home.
Check out the wide selection of incentive programs available in your state so that you can make the most out of the new homeownership investment.
