First-time home buyer programs in Louisiana: assistance, loans and real costs
Louisiana offers one of the few true zero-down state programs (Delta 100) and no transfer tax, but first-time buyers in the southern parishes must budget for flood insurance that can exceed the property tax bill. Everything else on this page — the agency programs, the tax credit, the closing costs — sits on top of that fact.
| State housing agency | Louisiana Housing Corporation (LHC) |
|---|---|
| Median home price (approx.) | $200,000 — statewide order of magnitude; metros differ |
| 3.5% / 5% / 20% down | $7,000 / $10,000 / $40,000 on the median |
| Property tax (effective) | about 0.55% — roughly $1,100 a year on the median |
| Mortgage credit certificate | Yes — mortgage credit certificate offered |
| Transfer tax | Louisiana has no state real estate transfer tax; New Orleans levies a flat documentary transaction fee per instrument, and parishes charge recording fees. |
Louisiana’s first-time buyer programs
The Louisiana Housing Corporation’s Mortgage Revenue Bond (MRB) programs offer below-market first mortgages with down payment assistance, the Delta 100 program offers 100% financing in designated Delta parishes, and the LHC Preferred Conventional program serves moderate-income buyers. LHC also issues Mortgage Credit Certificates.
How the assistance money works
LHC’s MRB assistance is typically a forgivable second of up to 4% of the loan amount covering down payment and closing costs; Delta 100 requires no down payment at all in eligible parishes for buyers who complete education.
Read the lien type before the dollar figure: grant (no repayment), forgivable second (repaid only if you leave early), deferred second (repaid at sale or refinance), or repayable second (a monthly payment that counts in your debt-to-income ratio). See how down payment assistance programs work.
Mortgage credit certificate (tax credit)
LHC’s Mortgage Credit Certificate program provides a federal tax credit on a portion of annual mortgage interest for first-time buyers within income and price limits.
Income and purchase price limits
LHC income and purchase price limits vary by parish and household size; a 640 minimum credit score and homebuyer education are standard. Delta 100 is limited to specific parishes and requires a minimum credit profile.
Transfer taxes and closing costs in Louisiana
Louisiana has no state real estate transfer tax; New Orleans levies a flat documentary transaction fee per instrument, and parishes charge recording fees.
Louisiana closings are conducted by attorneys or notaries; buyer costs of about 2% to 3% include title insurance and lender fees, and homeowners and flood insurance premiums are a large prepaid item in much of the state. Our guide to closing costs explains each line of the Loan Estimate and which fees you can shop.
What the payment looks like on a $200,000 home
Worked on Louisiana’s rough $200,000 median (your county may be far above or below) at an illustrative 6.5%: down payment, loan amount, principal and interest, and the monthly share of property tax at the state’s approximate 0.55% effective rate, or about $1,100 a year. Exclude nothing else from your own budget — insurance, PMI, HOA dues all apply.
| Structure | Down payment | Loan amount | P&I at 6.5% (30 yr) | Property tax / mo (est.) |
|---|---|---|---|---|
| FHA, 3.5% down | $7,000 | $193,000 | $1,220 | $92 |
| Conventional, 5% down | $10,000 | $190,000 | $1,201 | $92 |
| Conventional, 20% down (no PMI) | $40,000 | $160,000 | $1,011 | $92 |
Illustrative rate and approximate state figures — not an offer or a quote. Full payment tables cover $150,000 to $800,000 at 5% to 8%; the affordability guide explains how lenders size the loan.
Frequently asked questions
Does Louisiana have down payment assistance for first-time buyers?
LHC’s MRB assistance is typically a forgivable second of up to 4% of the loan amount covering down payment and closing costs; Delta 100 requires no down payment at all in eligible parishes for buyers who complete education. The agency publishes the current limits and amounts; a lender approved for the program will know them.
Is there a first-time home buyer tax credit in Louisiana?
LHC’s Mortgage Credit Certificate program provides a federal tax credit on a portion of annual mortgage interest for first-time buyers within income and price limits. An MCC must be issued at closing — it cannot be added to an existing loan — so ask about it before you choose a lender.
What are typical closing costs when buying a house in Louisiana?
Louisiana closings are conducted by attorneys or notaries; buyer costs of about 2% to 3% include title insurance and lender fees, and homeowners and flood insurance premiums are a large prepaid item in much of the state. Louisiana has no state real estate transfer tax; New Orleans levies a flat documentary transaction fee per instrument, and parishes charge recording fees.
Read next
- Earnest money explained: how much, who holds it, and how you lose it
- Appraisal gap: what happens when the home appraises below your offer
- Down payment assistance programs: how they work and how to find yours
- How much house can I afford? The math lenders actually use
Also for this state: hard money rules in Louisiana · foreclosure in Louisiana.