In short
The Louisiana Housing Corporation (LHC) runs four HomeStart programs. Two give 4% forgivable assistance after 60 months. HomeStart Plus gives up to $55,000 plus up to $5,000 for closing costs in Orleans Parish. The City of New Orleans adds up to $55,000 for buyers at or below 80% of area median income, as of October 2026.
What state programs does Louisiana offer?
The LHC is the state housing finance agency. Its homeownership programs carry the “HomeStart” name and are administered with eHousing Plus; loans reserved before September 9, 2026 follow the guidelines of the former programs. Buyers reserve a loan through a participating lender, not directly with the LHC.
All four programs require a minimum credit score of 640 and a 30-year fixed-rate first mortgage. All require an approved homebuyer education course for at least one occupying borrower, except that repeat buyers under HomeStart Ready are exempt.
| Program | Assistance | Who qualifies | Income cap |
|---|---|---|---|
| HomeStart Assist | 4% of the first mortgage, as a 0% second mortgage forgiven after 60 months | First-time buyers (no principal residence in the past 3 years) | Up to 115% of area median income (AMI), or 140% in targeted areas; conventional loans limited to 80% AMI |
| HomeStart Advantage | 4% of the final first mortgage, forgiven after 60 months | Any buyer who owns no other residence at closing; first-time status not required | $125,000 household income |
| HomeStart Plus | Up to 20% of the price, maximum $55,000, plus up to $5,000 for closing costs; forgiven monthly over 10 years | First-time buyers in parishes hit by Hurricanes Laura, Delta or Ida | 80% of HUD AMI |
| HomeStart Ready | None: first mortgage only | First-time and repeat buyers | $99,000 |
Source: Louisiana Housing Corporation program pages and Single Family Lenders’ Guide, September 10, 2026.
How much money can you get?
HomeStart Assist and Advantage
Both give 4% of the first mortgage. For HomeStart Assist the base is the original principal amount; for Advantage, the final amount. The money can pay for the down payment, closing costs and prepaid items.
Example. On a $290,000 first mortgage, 4% is $11,600. The second mortgage carries 0% interest and is fully forgiven after 60 months if you meet the occupancy rules. This is an illustration, not a quote. Assist also carries a purchase price limit of $554,850 ($678,150 in targeted areas), effective May 4, 2026. Advantage caps the price at the applicable FHA loan limit, which HUD sets by area.
HomeStart Assist uses tax-exempt bond funds, so a federal recapture tax may apply if you sell within nine years and your income and gain meet the tax conditions. The LHC provides a notice to buyers on this.
HomeStart Plus
Plus is the largest state program, and it covers Orleans Parish: the LHC’s list of eligible parishes names Orleans among those affected by Hurricane Ida (disaster DR-4611). It is first-time buyers only, with these terms:
- Assistance of 20% of the purchase price, up to $55,000, as a 0% second mortgage forgiven at 1/120 each month over 10 years of owner occupancy.
- A grant of up to $5,000 for closing costs.
- A minimum buyer contribution of the greater of 1% of the price or $1,500, and a maximum buyer investment of the greater of 10% of the price or $10,000.
- Homes in a Special Flood Hazard Area (Zones A, AE or V) are not eligible.
Example. At the 2024 Census median value for New Orleans, $305,100 (see our page on Louisiana home prices), 20% is $61,020, so the $55,000 cap applies.
Plus requires homeowners and flood insurance for the life of the second mortgage. See our guides to flood insurance and homeowners insurance.
Income and price limits for Orleans Parish
The LHC publishes parish-by-parish income charts for HomeStart Assist and Plus, but the links to the current charts returned an error when we checked on October 13, 2026. We therefore do not print LHC dollar limits by household size. Ask your lender or call the LHC at 225-763-8700.
The percentages are fixed. HUD’s 2026 median family income for New Orleans is $88,600, effective June 1, 2026, according to the City of New Orleans. At 80% of that median, the City’s chart shows these limits:
| Household size | 80% of median income (2026) |
|---|---|
| 1 person | $49,650 |
| 2 people | $56,750 |
| 3 people | $63,850 |
| 4 people | $70,900 |
Source: City of New Orleans Office of Community Development, 2026 HUD income limits chart.
Targeted areas matter too. In HomeStart Assist, buyers in HUD-designated census tracts skip the first-time buyer rule and get higher price and income limits. LHC’s Exhibit P lists 70 targeted tracts in Orleans Parish. Check your tract with your lender.
What does New Orleans offer?
The City of New Orleans Office of Community Development runs the Direct Homebuyer Soft Second Mortgage Assistance Program, funded with federal Community Development Block Grant money. As of January 2026 the City reported $1,000,000 available. The City’s page lists two forms of help:
- Down payment assistance: up to $55,000 as a soft second mortgage, to bridge the gap between the price and the maximum first mortgage.
- Closing cost assistance: up to $5,000. CDBG rules allow the City to pay up to 50% of closing costs.
You qualify if you are a first-time buyer (no home owned in the past three years), earn at or below 80% of area median income, complete a HUD-approved homebuyer course, qualify for a first mortgage through an approved lender, and buy in Orleans Parish. The maximum sales price is $324,000. The City’s page names a program contact at 504-658-4244. Its page was last updated July 31, 2026, so confirm that funds remain before you plan around them.
How to apply
- Take a homebuyer course. The LHC lists on-demand classes: Finally Home (up to $70), Frameworks ($75) and eHome America (cost varies). HUD also lists approved counseling agencies for Louisiana.
- Pick a participating lender. The LHC and the City each publish lender lists. Programs have different loan types and credit rules, so compare offers.
- Reserve your funds. The lender reserves a loan through the eHousing Plus portal. HomeStart Advantage requires a fully executed purchase agreement to reserve funds.
- Check the order of your costs. Read our Louisiana closing costs guide and our guide to the steps of buying a home. For loan types, see FHA loans and VA loans.
For the city context, see buying a home in New Orleans.
Frequently asked questions
Does Louisiana have a down payment assistance program?
Yes. The Louisiana Housing Corporation’s HomeStart Assist and HomeStart Advantage give 4% of the first mortgage as a forgivable second mortgage. HomeStart Plus gives up to $55,000 in designated hurricane-affected parishes, including Orleans.
Do I have to be a first-time buyer?
For HomeStart Assist and Plus, yes, meaning you have not owned a principal residence in the past three years. HomeStart Advantage and Ready do not require it, though Advantage requires that you own no other residence at closing.
Can I combine state and city help in New Orleans?
The sources we read do not say. The LHC guide and the City’s page set separate rules, and both would sit behind your first mortgage. Ask your lender and the City’s program contact before you rely on combining them.
What happens to the forgivable loan if I sell early?
The second mortgage is forgiven only if you keep meeting the program’s occupancy rules. For HomeStart Assist, the lender’s guide also warns that the tax-exempt first mortgage may trigger a federal recapture tax if you sell within nine years.
Compare with the other states: First-time home buyer programs by state.
More Louisiana guides
- Closing costs in Louisiana: what buyers and sellers pay
- Real estate transfer tax in Louisiana and New Orleans
- Louisiana property tax: 10% assessment and homestead exemption
- Seller disclosure requirements in Louisiana
- Do you need an attorney or notary to close in Louisiana?
- Foreclosure process in Louisiana: executory process explained
- Home prices in Louisiana and New Orleans: median value and trend
- How to verify a real estate license in Louisiana
- Louisiana community property and buying a home as a couple
- Hurricanes, flood and home insurance in Louisiana
Sources
- HomeStart Assist (Louisiana Housing Corporation) (consulted October 13, 2026)
- HomeStart Advantage (Louisiana Housing Corporation) (consulted October 13, 2026)
- HomeStart Plus (Louisiana Housing Corporation) (consulted October 13, 2026)
- HomeStart Ready (Louisiana Housing Corporation) (consulted October 13, 2026)
- Homebuyers (Louisiana Housing Corporation) (consulted October 13, 2026)
- Single Family Lenders' Guide, Louisiana Home Starts Here (LHC, September 10, 2026) (consulted October 13, 2026)
- HomeStart Assist Purchase Price Limits, LHC Exhibit N1 (effective May 4, 2026) (consulted October 13, 2026)
- HomeStart Assist Targeted Area Census Tracts, LHC Exhibit P (consulted October 13, 2026)
- HomeStart Plus Eligible Parishes by Hurricane (LHC / eHousing Plus) (consulted October 13, 2026)
- Direct Homebuyer Assistance Program (City of New Orleans Office of Community Development) (consulted October 13, 2026)
- 2026 New Orleans HUD Median Family Income and income limits (City of New Orleans) (consulted October 13, 2026)