Louisiana down payment assistance income limits determine whether you qualify for the LHC MRB Assisted Program’s 4% soft second at 0% interest, and they change depending on where in the state you are buying and how many people live in your household. Getting this number right before you fall in love with a house saves a lot of heartache later.
What Are Louisiana Down Payment Assistance Income Limits?
Louisiana down payment assistance income limits are set as a percentage of the area median income (AMI) for the parish where you are buying, and they are the single biggest factor in whether the LHC MRB Assisted Program’s soft second is available to your household. The program uses your projected annual household income, not just what is on your current paystub, to compare against the limit for your household size and location.
The Three Income Tiers Behind the Limits
There are three separate thresholds built into the Louisiana down payment assistance income limits, and which one applies depends on your loan type and where the property sits:
- 140% AMI for buyers purchasing in a HUD-designated Targeted area.
- 115% AMI for buyers purchasing in a Non-Targeted area.
- 80% AMI for every household using a conventional first mortgage, regardless of area.
Because Targeted areas get the most generous ceiling, two households earning the exact same income can land on opposite sides of the Louisiana down payment assistance income limits depending purely on the address of the home they want to buy.
How AMI Is Calculated for Your Parish
Area median income is published for each Louisiana metropolitan statistical area and adjusted for household size, so the Louisiana down payment assistance income limits for a family of two in Jefferson Parish will not match the limits for a family of five in Ouachita Parish. Because these figures are updated periodically and vary parish by parish, the only reliable way to know your number is to have an LHC-approved lender run your household size and target parish against the current published tables before you write an offer.
What Counts as Household Income
When your lender checks your numbers against the Louisiana down payment assistance income limits, they project your gross household income forward for the coming year rather than only looking backward at last year’s tax return. A few things to keep in mind:
- Income from every household member who will be on title, or whose income is otherwise counted under program rules, gets included in the projection.
- “Grossed up” non-taxable income is not used when checking compliance against the limits, even though it may be used differently for standard mortgage qualifying.
- Two years of employment history and a paystub within the last 30 days are required to document what is being projected.
What Happens If You Are Just Over the Line
It is common for a household to sit close to the Louisiana down payment assistance income limits without knowing it. Overtime, a recent raise, a second job, or a co-borrower’s income can push a household over the threshold for their parish and loan type even when their budget still feels tight. This is exactly why running the numbers with a lender before shopping matters more than guessing from a general online chart. Sometimes restructuring who is on the loan, or choosing a Targeted-area property with its higher 140% AMI ceiling, is enough to bring a buyer back within range.
Pairing the Income Limits With Credit and Program Rules
Meeting the Louisiana down payment assistance income limits is necessary but not sufficient on its own. You will also need a minimum credit score of 640 using at least two credit scores, since non-traditional credit is not accepted, a maximum debt-to-income ratio of 50%, and an Approve/Eligible finding through automated underwriting, since manual underwrites are not permitted. The first mortgage paired with the soft second has to be FHA, VA, USDA Rural Development, Fannie Mae, or Freddie Mac, and the purchase price cannot exceed the FHA loan limit for the parish.
How to Apply
Once you have a reasonable sense of where you fall against the Louisiana down payment assistance income limits, the path forward looks like this:
- Work with an LHC-approved lender who can pull the current AMI tables for your exact parish and household size.
- Complete the required homeownership education course through a HUD-approved counseling agency or approved online course.
- Get pre-approved and shop for an eligible one-unit primary residence or townhouse that is essentially move-in ready.
- Submit your complete application with a signed purchase agreement, since LHC serves applicants first-come, first-served.
For a broader look at the home-buying timeline, our New Orleans first-time homebuyer guide covers the steps that come before and after this program. You can also review the official income and program details at the Louisiana Housing Corporation’s MRB program page.
Frequently Asked Questions
Do Louisiana down payment assistance income limits use gross or net income?
Gross household income, projected forward for the coming year rather than based only on a prior tax return.
Are the limits the same in every parish?
No. Area median income is published by metropolitan statistical area and adjusted for household size, so limits shift from parish to parish and household to household.
What if my income is slightly too high?
Talk to your lender before assuming you are disqualified. Household composition, loan type, and whether the property sits in a Targeted area can all change which threshold applies.
Does a co-borrower’s income count toward the limit?
Generally yes for anyone on title or otherwise counted under program rules, which is one reason it pays to review the full household picture with your lender early.
Where can I find the official current limits?
Your LHC-approved lender pulls the current published AMI tables directly, since figures are updated periodically and a lender can confirm exactly where your household falls.
Every household’s numbers are different, and the only way to know for certain where you stand against the Louisiana down payment assistance income limits is to run your actual figures. Reach out and we will check them together.
Charles, Mortgage Loan Advisor with Max Mortgage, LLC. 20+ years in mortgage and real estate. NAMB Certified FHA Mortgage Professional.
Max Mortgage, LLC | NMLS #1446745
Charles Parharm | NMLS #1413036
Licensed to conduct residential mortgage business in applicable states. Loan programs, terms, and conditions are subject to change without notice. All loans are subject to approval. Equal Housing Opportunity.
