Overview
With a typical Louisiana home value around $215,000, the Pelican State is one of the more affordable places in the country to buy your first home, even after recent price gains. The catch is rarely the monthly payment; it's pulling together the cash for a down payment and closing costs, especially when insurance premiums in coastal parishes run high. That's where the Louisiana Housing Corporation (LHC), the state's housing finance agency, comes in. LHC pairs a competitive 30-year fixed mortgage with assistance funds that turn a years-long savings goal into a this-year purchase.
LHC's flagship is its Market Rate GNMA program, which layers up to 4% of the purchase price in down payment and closing-cost assistance on top of a 30-year fixed FHA, VA, or USDA loan. The assistance is structured as a soft second mortgage rather than a grant, so it carries no monthly payment; in most of LHC's products it is forgiven once you hold the home through the program term. You'll need a 640 minimum credit score and household income at or below 115% of the area median, and notably this program is open to repeat buyers too, not just first-timers.
State Programs
Market Rate GNMA Program
Soft second mortgage (deferred/forgivable, no monthly payment)MRB Assisted Program
Second mortgage forgiven after 3 yearsMRB Home Program
Deferred/forgivable assistance (no interest or repayment if retained)Resilience Soft Second Program
Soft second mortgage, forgiven after 10 years of owner-occupancyCity of New Orleans Direct Homebuyer Soft Second Program
Soft second mortgage, forgiven in full after 10 years if owner-occupiedFederal Programs Available in Louisiana
These nationwide programs can be combined with Louisiana state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in Louisiana
If you've never owned before and earn less, LHC's MRB Home and MRB Assisted programs can stack more help: MRB Assisted offers up to 4% as a second mortgage forgiven after three years, while MRB Home reaches 5%-9% of the loan for buyers at or below 80% of area median income. A standout local option is the LHC Resilience Soft Second, offering up to a $55,000 soft second plus $5,000 in closing costs (up to $60,000 total) in 46 hurricane-affected parishes, forgiven after 10 years of owner-occupancy for buyers under 80% AMI.
Louisiana's tax picture got simpler in 2025: the state replaced its old graduated brackets with a flat 3% individual income tax, which still applies for 2026. Property taxes are among the nation's lowest at roughly 0.55% effective, and the homestead exemption shields the first $75,000 of your home's market value from parish taxes on your primary residence. On a $215,000 home, that exemption typically saves $750-$800 a year, so many modest Louisiana homes owe little to no parish tax beyond municipal and special district millages.
Beyond LHC, the City of New Orleans runs a Direct Homebuyer Soft Second offering up to $55,000 plus closing-cost help, forgiven over 10 years for buyers at or below 80% AMI. Military buyers near Barksdale AFB, Fort Johnson (formerly Fort Polk), and NAS JRB New Orleans can pair these with a VA loan. Your next steps: most LHC products require a HUD-approved homebuyer education course, so connect with a HUD-approved housing counselor early, then work with an LHC-participating lender to confirm which assistance tier fits your income and parish.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: June 15, 2026.