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First Time Home Buyer in LouisianaIf you are looking to buy your 1st home, you've come to
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Today’s Rates for First Time Homebuyers in Louisiana

Wednesday, May 29, 2024

Mortgage rates are at 3.00% for the 30 year fixed loan program and at 2.56% for the 15 year fixed. As for variable rates, the 5/1 ARM rate currently stands at 4.56%. Check out FHA and VA rates as well if you are doing low or no down payments.

Louisiana First Time Home Buyer Checklist

1. Discover loan programs that may suit you. If you're moving to an eligible area, you may qualify for a zero down payment loan through USDA. Veterans and active duty military may be eligible for VA loans, which do not require cash down. The content in the paragraphs below should give you an idea of where you may fall. 

2. Know your credit score. Ideally it should fall somewhere above 600, but a few lenders accept scores in the high 500s. If your credit score needs a boost, work on improving it before you try to take out a mortgage. Once annually, you're able to request a free credit report from the three major credit bureaus. 

3. Shop interest rates from different Louisiana lenders. Choose one who not only provides a great offer, but carries a high rating from the Better Business Bureau.

4. Get pre-approved. After you've settled on a lender, supply income documentation with your last two pay stubs and tax returns from the past two years. 

5. Calculate your budget. You could be pre-approved for a loan amount that is bigger than you had anticipated, but do not base your budget on the sum provided. Remember - pre-approvals are not a promise to lend, and only you know what you can truly afford. 

6. Start searching for your new home. Meanwhile, be sure to avoid making large purchases, taking out new installment loans, or anything else that could weaken your financial standing. Lenders will check your accounts again before closing your loan.  

Low Down Payment Loans Through FHA

If you’re a first time home buyer without a lot to put down, a Louisiana FHA loan may accommodate you. FHA loans are backed by the government and designed to help home buyers with limited upfront funds receive financing.

  • Down payment: 3.5%
  • Minimum acceptable credit score: 580 (varies)
  • Mortgage insurance: Upfront (1.75% loan amount) and monthly
  • Property guidelines apply and are verified via home inspection

You can find additional information about FHA loans on the Louisiana page of the FHA website.

No Down Payment Loans Through USDA

The United States Department of Agriculture backs home loans for zero down to Louisiana home buyers looking to move to or live in rural areas. Find out if your buying city is eligible by searching the USDA's property map. Note that popular areas like New Orleans, Baton Rouge, and Shreveport are not eligible. 

  • Down payment: None required; financing up to 102% available depending on home appraisal
  • Minimum acceptable credit score: 620
  • Mortgage insurance: Upfront (2% loan amount) and monthly
  • Income maximums apply 

Louisiana Grant and Assistance Programs

The Louisiana Housing Corporation (LHC) provides affordable, low inteterest, 30 year fixed-rate mortgages to eligible home buyers through the Market Rate GNMA Program. Included is down payment or closing cost assistance in the form of a grant equal to 3% the loan amount. The 3% is a cash gift and need not be repaid. Income and property price limits (set by FHA, VA, and USDA) apply, but there are no location restrictions so popular cities like New Orleans, Baton Rouge, and Shreveport are eligible. Manufactured homes are not eligible.

LHC offers several other mortgage assistance programs which go in and out of availability due to limited funds. Many offer down payment grants and closing cost grants. Check the official site for more information and a full list of programs, including Market Rate GNMA. 

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user suit Lenders in: Louisiana.

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