Louisiana First-Time Home Buyer Grants 2026

Louisiana Home Buyer Programs Compared (2026)

Louisiana buyers have 4 LHC programs and 3 city programs with published terms to weigh, and only one piece of one program is labeled a grant. The rows below reflect each agency's pages on November 3, 2026.

Sources: LHC HomeStart program pages and Single Family Lenders' Guide (published 09/10/26); City of New Orleans Direct Homebuyer Assistance page and 2025 Underwriting Criteria Summary; City of Shreveport Home Ownership Assistance page; Lafayette Consolidated Government First-Time Homebuyers Assistance page and Draft Program Year 2026 Annual Action Plan. All checked November 3, 2026.

The plain reading: the 4% programs are generous for a forgivable loan, since you owe nothing after 5 years in the home. But if you sell or refinance in year 3, expect that money to come out of your proceeds. HomeStart Plus and the New Orleans soft second are much larger, and both run on a 10-year clock.

LHC Income and Purchase Price Limits by Parish (2026)

LHC's price cap for HomeStart Assist is $554,850 in non-targeted areas and $678,150 in targeted areas, effective May 4, 2026, according to LHC's HomeStart Assist purchase price limits sheet. HomeStart Advantage and HomeStart Plus instead cap the price at the applicable FHA loan limit. Income limits change by parish, by household size and by whether the home sits in a targeted census tract.

Sources: LHC, Exhibit N1, "Mortgage Revenue Bond Program, Assisted, Maximum Permissible Limits per Parish, 2026" and Exhibit F(c), "Pathways Soft Second Program, Maximum Permissible Limits per Parish, 2026," both marked as required documents as of 05/04/2026 and still posted on the HomeStart Assist and HomeStart Plus pages. Parish order uses Census Bureau July 1, 2025 population estimates. The newer HomeStart income limit PDFs that LHC links returned "not found" errors on November 3, 2026, so these exhibits are the latest parish tables Grantsights could open.

Two catches sit behind these numbers. First, HomeStart Assist counts the income of every household member 18 or older, not just the people on the loan, according to LHC's lenders' guide. Second, a buyer using a conventional Fannie Mae or Freddie Mac first mortgage under HomeStart Assist must also have qualifying income at or below 80% of area median income, a rule LHC added on September 10, 2026. FHA, VA and USDA buyers get the full limit shown above.

HomeStart Advantage skips the parish table entirely: household income can't exceed $125,000 anywhere in the state. HomeStart Ready uses $99,000 in qualifying borrower income, counting only the people on the loan.

How Far LHC's 4% Goes in Louisiana's Biggest Parishes

Run LHC's 4% formula against each parish's Census median and a pattern appears. Grantsights analysis of the Bureau's 2020-2024 parish home values finds that 4% of an FHA loan equals roughly 3.86% of the purchase price, which more than covers the 3.5% FHA minimum down payment in every parish below. What it leaves for closing costs is small, usually under $1,200.

Calculation: loan = 96.5% of the median value (FHA minimum 3.5% down from HUD's loans page (opens in a new tab)); assistance = 4% of that loan, per LHC's HomeStart Assist page. The HomeStart Plus column is the program's ceiling, not a typical award; LHC sizes each award to the buyer's need. Medians are 2020-2024 ACS values and run below current prices. FHA's upfront mortgage insurance, if financed, raises the loan amount slightly.

The takeaway: in every big parish, the 4% programs get a median-priced FHA buyer past the down payment, but you'll still need cash for inspections, appraisal, prepaid insurance and taxes. In hurricane-designated parishes, HomeStart Plus can be ten times larger if your income is under 80% of area median.

Local Help in New Orleans, Baton Rouge, Shreveport and Lafayette

The 4 largest local governments range from a $55,000 published offer in New Orleans to no posted dollar figure at all in Baton Rouge and Lafayette.

New Orleans: up to $55,000 soft second

According to the City of New Orleans Direct Homebuyer Assistance Program page (opens in a new tab), the Office of Community Development has $1,000,000 in CDBG funds for the program as of January 2026. Qualifying first-time buyers at or below 80% of area median income can get up to $55,000 in soft second mortgage assistance and up to $5,000 for closing costs, with a $324,000 maximum sales price in Orleans Parish. The city's 2026 income chart, effective June 1, 2026, puts 80% of median at $49,650 for one person, $56,750 for two, $63,850 for three and $70,900 for four.

The city's 2025 Underwriting Criteria Summary (opens in a new tab) spells out what "soft" means here:

• It's a 0% loan that can't exceed 50% of the purchase price.
• Sell or move within 5 years and you repay the full amount. After year 5, 25% is forgiven, then another 15% each year in years 6 through 9, and it's fully forgiven at year 10.
• Your housing payment must land between 30% and 33% of gross monthly income, with total debt up to 48%.
• You contribute at least 1% of the price or $1,500, whichever is less, and keep at least one month of household expenses in reserve.
• Closing cost help covers up to 50% of closing costs, capped at $5,000, and buyers with large savings must use the excess first.
• A $350 homebuyer education stipend is due at closing, and you must use a title company from the city's approved list.

One wrinkle: the city's page says buyers may get the soft second "OR" closing cost assistance in one place and both in another. Ask the program contact which applies to you before you build a budget around $60,000.

Baton Rouge and East Baton Rouge Parish

On April 6, 2026, the City of Baton Rouge announced at least $6.3 million in federal grants for a set of initiatives that includes "access to 3% mortgages and down payment assistance for first-time homebuyers," according to the city's news release (opens in a new tab). The release doesn't give a per-buyer amount, income limit or application date, and Grantsights didn't find a current buyer program page with those terms on the city's site. Contact the Office of Community Development before counting on a specific figure. East Baton Rouge buyers do have full access to LHC's programs, and the parish is on HomeStart Plus's Hurricane Ida list.

Shreveport: HAPPI, up to 20% of the price

The City of Shreveport's Home Ownership Assistance page (opens in a new tab) describes the Home-buyer's Assistance Program Participation Initiative (HAPPI) for first-time buyers at or below 80% of area median income. Assistance can reach up to 20% of the sales price or appraised value, whichever is less, for down payment, rate buy-down and closing costs, through the city's approved lenders. You need a city-approved homebuyer education class, and HUD, VA, repossessed and manufactured homes aren't eligible.

The city's HAPPI program sheet (opens in a new tab), updated January 16, 2017, adds dollar caps of $10,000 for an existing home and $20,000 for new construction, a buyer contribution of $500 or 1% of the price, and a requirement to buy in one of 19 targeted neighborhoods. That sheet is nearly 10 years old, so confirm the current caps with a HAPPI lender.

Lafayette Parish

Lafayette Consolidated Government's First-Time Homebuyers Assistance page (opens in a new tab) says its Housing Loans Section helps low- and moderate-income households buy their first home inside Lafayette Parish, with an online application portal. It doesn't post an amount or income limit. LCG's draft Program Year 2026 Annual Action Plan (October 1, 2026 to September 30, 2027) budgets down payment and closing cost loans for 16 first-time buyers, so slots are limited. Call (337) 291-5450 for current terms.

FHA, VA and USDA Loans in Louisiana

All 4 HomeStart programs sit on top of a regular 30-year fixed first mortgage, and HUD puts the FHA minimum down payment at 3.5% of the price. LHC accepts FHA, VA, USDA Rural Development and the Fannie Mae and Freddie Mac HFA products as that first loan.

• FHA: the most common pairing with HomeStart Assist, since the 4% second more than covers a 3.5% FHA down payment, the floor according to HUD's loans page (opens in a new tab). LHC still holds you to 640, even where FHA's own credit rules are looser.
• VA: according to VA's purchase loan page (opens in a new tab), there's no down payment as long as the price isn't above the appraised value, though a one-time funding fee may apply. Veterans can also skip HomeStart Assist's first-time buyer rule with a DD214.
• USDA guaranteed loans: household income can't exceed 115% of median household income, per USDA Rural Development's guaranteed loan page (opens in a new tab). Much of Livingston, Tangipahoa and rural Louisiana may qualify, but check the address on USDA's map.

The national first-time home buyer guide compares these loan types in more depth, and our USDA housing grants guide covers USDA's direct loans for lower-income rural buyers.

What LHC Doesn't Tell You on Its HomeStart Pages

Grantsights compared LHC's four HomeStart pages with its September 10, 2026 lenders' guide and found 5 gaps worth knowing before you sign a purchase agreement.

1. The new income limit links are broken. On November 3, 2026, LHC's HomeStart Assist and HomeStart Plus income limit PDFs returned "not found" errors. The 2026 parish exhibits from the old MRB Assisted and Pathways programs, still posted under "Legacy Documents," are the newest tables available. Ask your lender to print the current limit for your parish from the eHousingPlus portal.
2. LHC won't subordinate. The lenders' guide says LHC will not subordinate its second mortgage if you refinance your first mortgage or take out a home equity line of credit. In practice, refinancing during the forgiveness period means paying off the unforgiven balance.
3. HomeStart Plus has a flood zone ban. Homes in Special Flood Hazard Areas (zones A, AE or V) aren't eligible, LHC must clear an environmental review that can take up to 2 weeks, and you must carry flood insurance for the life of the second mortgage. In south Louisiana that rules out a lot of houses, so check the flood map before you fall for one.
4. HomeStart Plus caps your savings. After closing, you may keep liquid assets equal to no more than 6 months of your new housing payment, not counting retirement accounts; any extra reduces your closing cost help. The guide also requires your housing payment to be at least 28% and no more than 33% of income.
5. Recapture tax applies to HomeStart Assist. Its first mortgage is financed with tax-exempt bonds. LHC's notice to buyers says that if you sell within the first 9 years at a gain, and your income has grown past the limit, you may owe federal recapture tax of up to 6.25% of the original loan amount, never more than 50% of the gain. The details are on IRS Form 8828 (opens in a new tab).

There's one more item the program pages skip: LHC's guide says Freddie Mac HFA Advantage buyers at or below 80% of area median income can get an Affordable Income Subsidy grant of 0.5% of the loan, or 1% at or below 50% of median. Your lender reserves it; ask whether it applies to you.

Common Mistakes and Red Flags for Louisiana Buyers

Nearly every costly error on this list happens before the lender reserves your loan, which LHC only allows once you have a fully signed purchase contract.

• Calling the 4% a grant. A common mistake is treating HomeStart Assist money as free on day one. It's a lien for 60 months; sell in month 50 and it's due.
• Underestimating the hurricane parish rules. HomeStart Plus is limited to the designated Laura, Delta and Ida parishes, and even inside them, a flood zone A or AE address is out.
• Counting only your own income. HomeStart Assist, Advantage and Plus count every adult in the household. A roommate or working adult child can push you over.
• Expecting LHC's 4% to cover everything. In Orleans Parish, the leftover after the FHA down payment was about $1,136 on the median home. Closing costs run well beyond that, so budget your own cash.
• Paying for "grant access." A red flag is any website, text or seminar charging a fee to unlock a Louisiana home buyer grant. The FTC's government grant scams page (opens in a new tab) says government agencies don't contact you demanding payment for a grant. LHC funds flow through participating lenders, and city funds through the city's approved lenders.

If you also need repairs after you move in, our guide to home repair grants for low-income homeowners covers federal and local options.

How to Apply for LHC Help, Step by Step

The LHC process has 6 steps, and the order matters because your lender can't reserve funds until you're under contract.

1. Check the limits. Find your parish in the table above, add up all adult household income, and confirm your credit score is at least 640.
2. Take a homebuyer class. LHC's homebuyers page (opens in a new tab) lists on-demand options: Finally Home (up to $70), Frameworks ($75) and eHome America (cost varies). HUD-approved counseling agencies in Louisiana are another route. At least one occupying borrower needs the certificate; HomeStart Ready only requires it of first-time buyers.
3. Get pre-approved by an LHC participating lender. Use the lender directory linked from LHC's program pages, and ask which HomeStart program fits your income and parish.
4. Sign a purchase agreement on an eligible home. Stay under the price cap, and for HomeStart Plus, confirm the address isn't in a Special Flood Hazard Area.
5. Let the lender reserve your funds. LHC's guide gives lenders 60 days from reservation to underwriter certification, or the loan cancels automatically.
6. Close and keep your papers. The assistance goes to closing, not to you. Keep the second mortgage note, because you'll need a payoff statement from the servicer if you sell or refinance early.

For example, a couple in Orleans Parish earning $54,000 a year buying a $250,000 home with an FHA HomeStart Assist loan would borrow $241,250 and get $9,650 (4%) as a forgivable second mortgage, which covers the $8,750 down payment with $900 left toward closing. They're well under Orleans' $88,600 limit for 2 people, and also under the city's $56,750 cap for the New Orleans soft second, whose award is specifically limited to 50% of the price, or $125,000 here, and capped at $55,000. Whether the city and LHC funds can be layered isn't stated on either agency's page, so ask both before choosing.

A family of 3 in East Baton Rouge earning $95,000 sits under HomeStart Assist's $108,675 non-targeted limit and HomeStart Advantage's $125,000 cap, but well over HomeStart Plus's 80% limit. For them, the 4% programs are the realistic state option.

What to Do If Funds Run Out or You're Denied

LHC posts no funding cutoff for any of its 4 programs, and New Orleans states a dollar figure, $1,000,000, rather than a deadline. Local money tends to go first-come, first-served.

• If a city fund runs dry: ask the city to notify you when funding is added, and fall back on HomeStart Assist or Advantage, which aren't tied to a city budget.
• If you're over the parish limit: check whether the home sits in a targeted census tract, where HomeStart Assist limits run about 20% higher (for example, $132,300 versus $108,675 for a family of 3 in East Baton Rouge). If you're under $125,000, HomeStart Advantage is another route.
• If your credit is below 640: a HUD-approved housing counselor can help you build a plan, and our guide on how to apply for grants as an individual explains how to sort real help from offers to avoid.
• If buying has to wait: see our rental assistance programs guide and the HUD income limits guide while you save.

The HUD HOME program guide explains the federal funds behind many parish and city buyer programs, which can help you find one not listed here.

Not sure whether a state, city or federal route fits your household? Our free eligibility checker sorts the official options for you to follow up on yourself; it can't award money or file anything for you.

Shopping near a state line? Compare with the Texas and Mississippi guides.

Sources

• Louisiana Housing Corporation, HomeStart Assist (opens in a new tab) (checked November 3, 2026)
• Louisiana Housing Corporation, HomeStart Advantage (opens in a new tab) (checked November 3, 2026)
• Louisiana Housing Corporation, HomeStart Plus (opens in a new tab) (checked November 3, 2026)
• Louisiana Housing Corporation, HomeStart Ready (opens in a new tab) (checked November 3, 2026)
• Louisiana Housing Corporation, Homebuyers (opens in a new tab) (homebuyer education options)
• Louisiana Housing Corporation, Single Family Lenders' Guide, Louisiana Home Starts Here (opens in a new tab) (published 09/10/26)
• Louisiana Housing Corporation, Exhibit N1, MRB Assisted Program Limits 2026 (opens in a new tab) (as of 05/04/2026)
• Louisiana Housing Corporation, Exhibit F(c), Pathways Program Limits 2026 (opens in a new tab)%20-%20Pathways%20Program%20Limits%202026.pdf) (as of 05/04/2026)
• Louisiana Housing Corporation via eHousingPlus, HomeStart Assist Purchase Price Limits (opens in a new tab) (effective May 4, 2026), HomeStart Plus Eligible Parishes by Hurricane (opens in a new tab) and Notices to Buyers and Recapture Tax Brochure (opens in a new tab)
• City of New Orleans, Direct Homebuyer Assistance Program (opens in a new tab) (updated July 31, 2026), 2025 Underwriting Criteria Summary (opens in a new tab) and 2026 New Orleans HUD Income Limits (opens in a new tab).pdf/?lang=en-US) (effective June 1, 2026)
• City of Baton Rouge, Community Development initiative announcement (opens in a new tab) (April 6, 2026)
• City of Shreveport, Home Ownership Assistance (HAPPI) (opens in a new tab) and HAPPI program sheet (opens in a new tab) (updated January 16, 2017)
• Lafayette Consolidated Government, First-Time Homebuyers Assistance Program (opens in a new tab) and Draft Program Year 2026 Annual Action Plan (opens in a new tab)
• IRS, About Form 8828, Recapture of Federal Mortgage Subsidy (opens in a new tab)
• HUD, Loans (FHA) (opens in a new tab)
• VA, VA purchase loan (opens in a new tab)
• USDA Rural Development guaranteed loan rules (opens in a new tab), as they apply to buyers in Louisiana
• U.S. Census Bureau, QuickFacts: Louisiana and its five largest parishes (opens in a new tab) and Caddo, Calcasieu, Livingston, Ouachita and Tangipahoa parishes (opens in a new tab) (median value of owner-occupied homes, 2020-2024; population estimates July 1, 2025)
• FTC, Government Grant Scams (opens in a new tab)