Down Payment Assistance in Louisiana

What is down payment assistance in Louisiana?

Louisiana's home prices tend to sit below the national average, and with the right assistance programs, turning that affordability into actual homeownership can be simpler than most buyers expect.

Homebuyers may be able to use down payment assistance (DPA) programs to help them purchase a property. Down payment assistance is made up of national, state, local, and employer-sponsored programs designed to support homebuyers who can afford a monthly mortgage payment but need help coming up with the upfront cash needed for a down payment and closing costs.

Offered by government agencies, nonprofits, and some private organizations, DPA provides financial support to help homebuyers cover the down payment, closing costs, or both. It helps to bridge the gap between what buyers have saved and the funding they need to buy.

It may also provide homebuyers with a financial cushion, so they don’t have to drain all of their savings to afford homeownership.

From the bayous of the south to the piney hills up north, Louisiana homebuyers can tap into statewide, local, and community-based programs that help cover the upfront costs of purchasing a home.

Assistance typically comes in one of three forms: a grant (money you don’t repay), a forgivable loan (which is gradually forgiven the longer you stay in the home), or a low-interest loan. The right option depends on the program and your individual situation.

Whether you’re a first-time homebuyer in Louisiana or returning to homeownership after years away, there may be money available to help make up the difference between how much you’ve saved and the amount you need to close on a home.  

How does down payment assistance work?

Every down payment assistance program has its own rules, but most follow a similar path from homebuyers researching their options to funding.

Research. The DPA landscape is larger than most people realize. In fact, there were more than 2,700 DPA programs as of July 2026, according to Down Payment Resource, a company that connects homebuyers to the programs. Assistance may be available at the state, county, city, or employer level, and different programs have different eligibility requirements. If one program doesn’t fit your situation, keep looking. There may be others that will.

Determine your eligibility. Common requirements include income limits, minimum credit scores, and property location restrictions. Understanding your financial profile, where you want to buy, and how long you plan to live in the home will help you identify which programs are worth pursuing.

Apply. Once you find a down payment program that fits your criteria and eligibility, you’ll submit an application and supporting documents. Expect to provide proof of income, personal identification, credit information, and details about the property you intend to purchase.

Get approved and receive funding. If your application is approved and your information verified, you’ll receive the assistance at closing. It’s typically applied directly toward your down payment, closing costs, or both, depending on the program’s terms.

It is important to note that most DPA programs have their own conditions, which may include having to repay the loan in part or full if you move early, sell, or refinance the home. Make sure to always review and understand the terms and conditions of any loan you use.

Additionally, some programs may run out of funding. That’s why it’s important to check availability and stay on top of deadlines.

Who qualifies for down payment assistance?

Many people don’t realize they may be able to qualify for down payment assistance. DPA isn’t just a tool for first-time and first-generation homebuyers or those with lower incomes.

The assistance is available for a wide variety of people in a range of financial situations. Nearly two-thirds, 62%, of current DPA programs serve homebuyers earning more than $100,000 a year and 11% have no income limits, according to Down Payment Resource.

Additionally, more than a third, 38%, of DPA programs don’t have a first-time homebuyer requirement.

There are DPA programs for: First-generation homebuyers, Native American homebuyers, veterans, educators, law enforcement, first responders, municipal employees, those who earn less than a certain threshold, and more. Some programs also exist for buyers who purchase properties in certain communities.

Some organizations also offer homeownership assistance programs for their employees, so make sure you check with your employer as well.

Types of down payment assistance

The majority of DPA programs fall into two categories: Second mortgages and grants.

Second mortgages are by far the most common form of down payment assistance, making up 56% of all programs, according to Down Payment Resource. This is a separate loan running alongside your primary mortgage, with its own monthly payment.

Second mortgages are often set up to be a deferred or forgivable loan to reduce the upfront cost. If you have a deferred loan, it means that it doesn’t have to be repaid until you sell, refinance, or move out. A forgivable loan is gradually forgiven if you live in the home for a set amount of time.

Grants make up 9% of DPA programs and are the most straightforward form of assistance. They’re a gift, with no repayment required under any circumstances. As always, read the terms carefully to make sure you understand any conditions attached.

Finding down payment assistance

Down Payment Resource offers an interactive search feature that allows you to search available DPA programs by location as well as by things like your occupation, military status, or disability status.

New American Funding (NAF) also offers a down payment assistance program called Pathway to Homeownership. Specifically available to first-time homebuyers, eligible borrowers may receive up to $6,000* in financial assistance. This money can be used to help with your down payment, closing costs, or other costs. It can also be combined with other DPA programs.

National down payment assistance programs

While there is not national database of nation-wide DPA programs available, there are several main ones that are notable. They include:

The Chenoa Fund

The Chenoa Fund is administered by CBC Mortgage Agency (a federally chartered tribal housing finance authority). It is one of the most accessible national DPA programs available because it drops two of the most common barriers to qualification. It has no income limits and no first-time homebuyer requirement.

The program covers the required 3.5% down payment on Federal Housing Administration (FHA) loans. The aid is structured either as a forgivable second mortgage or a repayable second mortgage, depending on the option selected.

Borrowers need a minimum 600 credit score to qualify. The program is available in all states except New York.

Since it works through a network of participating lenders nationwide, buyers can access it through their mortgage lender rather than applying directly.

The National Homebuyers Fund

The National Homebuyers Fund (NHF) is a nonprofit organization that provides down payment and closing cost assistance of up to 5% of the loan amount. It’s administered as a grant, meaning no repayment is required.

It has no first-time homebuyer requirement, making it available to repeat buyers who may not qualify for programs with that restriction. It works with FHA, U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), and Conventional loans.

The credit score and debt-to-income requirements are flexible.

The NHF is available in most states and is accessed through a network of participating lenders rather than through a direct application to the fund itself.

Many of the national DPA programs are offered by various lenders and private non-profit organizations like the Homeownership Council of America.

Down payment assistance programs in Louisiana

The Louisiana Housing Corporation (LHC) is the state’s housing finance agency and the central source for statewide DPA programs. LHC doesn't lend directly to buyers. Homebuyers apply through an LHC-approved participating lender who will combine the assistance with the mortgage.

LHC Soft Second

LHC’s Soft Second program provides a soft second loan of 20% of the purchase price up to $55,000. Additionally, the program offers up to $5,000 for closing costs for a total of up to $60,000. Payment of the loan is deferred until sale of the property or refinance. If the owner occupies the home for the full 10-year term, the loan will be forgiven.

The requirements for the Soft Second program include:

• Must be a first-time homebuyer
• Homebuyer must have an annual household income at or below 80% of area median income (AMI). This is the midpoint of local earnings for an area, calculated by the U.S. Department of Housing and Urban Development.
• Property cannot be located in a flood zone

LHC Resilience Soft Second

LHC’s Resilience Soft Second program provides a soft second loan of 20% of the purchase price up to $55,000. Additionally, the program offers up to $5,000 for closing costs for a total of up to $60,000. Payment of the loan is deferred until sale of the property or refinance. If the owner occupies the home for the full 10-year term, the loan will be forgiven.

The requirements for the Resilience Soft Second program include:

• Must be a first-time homebuyer
• Homebuyer must have an annual household income at or below 80% of AMI
• Property cannot be located in a flood zone

Beyond LHC’s statewide programs, several Louisiana cities and counties have established their own DPA programs. Many of these can be stacked with LHC assistance. That means some eligible buyers may be able to combine multiple programs and significantly increase their total help.

This can help them to cover their down payment, closing costs, or simply have a little left over as a financial cushion.

New Orleans down payment assistance programs

New Orleans is Louisiana's largest metropolitan area, known worldwide for its jazz-filled streets, French Quarter architecture, and a food scene that ranges from beignets to gumbo. The city draws homebuyers with its culture and character, from historic shotgun houses to lively neighborhoods that celebrate music and food nearly every night of the year. (Metros are the main city and surrounding towns, suburbs, and smaller urban areas.)

New Orleans down payment assistance includes:

Direct Homebuyer Soft Second Mortgage Assistance Program This down payment assistance program provides up to $55,000 in down payment assistance or up to $5,000 in closing costs assistance. The funds are provided as a 10-year forgivable loan with 0% interest. Homebuyer must repay the loan if they sell or move within the first five years. After five years, the second mortgage is forgiven at 25%, then 15% annually in years 6 through 9. The loan is fully forgiven by year 10.

DPA requirements include:

• Purchase price limit of $324,000
• Homebuyer must occupy the home as their primary residence for the full 10-year term of the loan
• Household earnings must be up to 80% of AMI
• Total DTI of up to 48%
• Completion of a homeownership education course

Shreveport down payment assistance programs

Shreveport is one of northwest Louisiana's largest cities, known for its riverfront casinos, and a lower cost of living than New Orleans or Baton Rouge. It's a solid pick for buyers who want Southern charm and affordability without sacrificing city amenities.

Shreveport down payment assistance includes:

Home Buyers Assistance Program Participation Initiative (HAPPI)  The program offers up to 20% of the sales price or appraised value to eligible first-time homebuyers.

HAPPI requirements include:

• Homebuyer income must be at 80% or below AMI
• Completion of an approved homebuyer education class must be your primary residence for a minimum of five years
• No HUD, VA, or repossessed properties will be eligible for assistance

Jefferson Parish down payment assistance programs

Jefferson Parish sits right next to New Orleans, giving buyers easy access to the city while offering more affordable housing and a bit more breathing room. Home to communities like Metairie and Kenner, along with miles of levee trails and local seafood spots, it's a popular choice for buyers who want New Orleans culture close by without the higher price tag of the city itself.

Jefferson Parish down payment assistance includes:

First-Time Homebuyer Assistance Program  The program provides up to $50,000 for Jefferson Parish and up to $60,000 for the city of Kenner in down payment and closing cost assistance for income-eligible first-time buyers within Mobile city limits.

Program requirements include:

• Must be a first-time homebuyer
• Completion of a homebuyer education class
• Must meet income requirements
• Must be owner-occupied properties

These are the main down payment assistance programs available across Louisiana. However, there may be more programs available to you based on your location in the state or your occupation.

For instance, some towns or cities may offer down payment assistance specifically for first responders or teachers. Make sure to do your own research to see if there is a program that may be right for you. And be aware that certain programs may only be available until all of the funding is used.

How to apply for Louisiana down payment assistance

The application process for different DPA programs may change. However, some general application steps include:

1. Check your eligibility. Review income limits, credit requirements, and first-time buyer status at lhc.la.gov. For local programs, contact the relevant city or county housing office.
2. Find a participating lender. LHC programs are only available through approved lenders in their network.
3. Get pre-qualified. Your lender reviews your income, credit, and debts to determine which programs you may qualify for to receive funding.
4. Complete homebuyer education. Enroll in an approved homebuyer education course and keep your completion certificate for closing.
5. Find your home. Work with a licensed agent to locate a qualifying Louisiana property. Your lender will confirm if it meets program requirements.
6. Close on your home. Your lender packages your first mortgage and DPA together. Assistance funds are applied at settlement.

Louisiana down payment assistance FAQs

^{Program details reflect August 2026 information. Down payment assistance programs are subject to change and depend on current funding availability. Always confirm income limits, eligibility requirements, and program details with your lender or the applicable program administrator before applying.}

^{*Credit up to $6,000 maximum. Due to maximum seller concession rules applicable to purchase loan transactions, this credit could be less than $6,000 in some cases where other concessions have been made to the consumer.}