Louisiana Home Loan Programs for Veterans

The Louisiana Housing Corporation began in 2011 following a merger of the Louisiana Housing Finance Authority and other housing programs; today, the LHC is responsible for federal and state funds to help borrowers find affordable, energy-efficient housing for low- and moderate-income families.

Louisiana Housing Corporation Market Rate GNMA Program

This program offers qualified veterans 30-year, fixed-rate FHA, VA, or USDA Rural Development mortgages. This home loan program requires the borrower to purchase a primary residence (no investment properties, RVs, motorhomes, houseboats, Airbnb, etc) within the state of Louisiana.

These loans, offered as 30-year fixed-rate mortgages, are available to both first-time home buyers and repeat borrowers, though the occupancy requirement will be an essential factor. The following rules apply to these loans for both veterans and civilians:

• Available for the purchase of single-family housing (1 unit principal residence)
• Household income limit up to 115% of the area median income
• Minimum credit scores required
• No origination fees
• Up to 4% available for down payment assistance, closing costs

Like many such programs, this loan is available from a network of participating lenders. Not all lenders have the same terms and conditions, so it is important to shop around for the right financial institutions. When you have found a lender and a home to purchase with your loan, the lender will help you with the down payment and closing cost assistance funds. Be sure to tell the lender up front that you want to take advantage of this program.

Louisiana Housing Corporation Mortgage Bond Revenue Home Program

Bond programs often provide need-based loans to borrowers meeting income caps and purchase price limits. This LHC bond program is for those who meet the median income limits and need assistance with down payments and closing costs. Requirements for this bond program include being a first-time home buyer and:

• Property must be purchased within the state of Louisiana
• Purchase price limits apply
• FICO score requirements apply
• Below market-rate interest for those who qualify
• Down payment assistance and closing cost help are dependent on the loan amount

These loans are issued by participating lenders; lender standards may apply. Veterans are not explicitly targeted with this program, but those who meet income and purchase requirements are welcome to apply.

The LHC Mortgage Revenue Bond Assisted Program

This is another LHC program offering assistance to prospective homebuyers (veterans or not) who need help with down payments and closing costs.

This bond program has interest rates typical of home loan products and is described as “usually” market-level. Those applying for this bond program must use a participating lender and meet the following requirements:

• Must be a first-time homebuyer
• First-time buyer requirements may be waived if the property is in a targeted area
• The property must be within the state
• Income requirements apply
• Purchase price limits apply
• If the property is in a Targeted Area, annual income limits may reach 140% of the median income
• Minimum FICO score requirements apply

Down payment and closing costs assistance are offered as a “soft-second” equal to 4% of the mortgage amount.