LHC Down Payment
Assistance Program
Your dream home in Louisiana is closer than you think. The LHC Mortgage Revenue Bond Assisted Program gives qualified first-time homebuyers up to 4% in down payment assistance, at zero percent interest.
Schedule an Appointment Today! Start Your ApplicationA Real Path to Homeownership for Louisiana Families
The LHC MRB Assisted Program: What It Is and How It Works
The Louisiana Housing Corporation (LHC) Mortgage Revenue Bond (MRB) Assisted Program was created to do one thing: open the door to homeownership for Louisiana residents who qualify as first-time homebuyers. The biggest barrier most buyers face is not qualifying for a mortgage. It is coming up with the down payment. This program solves that problem.
Qualified buyers receive a soft second mortgage equal to 4% of the final loan amount. That money covers your down payment and/or closing costs. The loan carries zero percent interest, requires no monthly payments, and is completely forgiven after five years as long as you continue to occupy the home as your primary residence.
- 4% of the final loan amount provided as a soft second mortgage
- 0% interest, not a loan you feel every month
- Fully forgiven after 5 years of owner-occupancy
- Available in all 64 Louisiana parishes
- Works with FHA, VA, USDA, Fannie Mae, and Freddie Mac first mortgages
- First come, first served. Funds are limited.
Program At a Glance
Understanding the Soft Second Mortgage
The down payment assistance is structured as a soft second mortgage, meaning it is a real loan, but one designed to disappear if you hold up your end of the deal. Here is exactly how it works.
You Receive 4% Assistance
At closing, LHC provides a soft second mortgage equal to 4% of your final first mortgage loan amount. This money goes directly toward your down payment and/or closing costs, reducing what you need to bring to the table.
Zero Percent Interest
The soft second mortgage carries an annual interest rate of exactly 0%. No interest accrues, no monthly payments are required on the second mortgage. It sits quietly in the background while you simply live in your home.
Forgiven After 5 Years
If you continue to occupy the home as your primary residence for five consecutive years, the entire balance of the soft second is forgiven. You will owe nothing. The assistance was essentially a grant for staying in your home.
Repayment Trigger
If you sell or refinance your home within the five-year compliance period, the full balance of the soft second becomes due and payable at that time. This is designed to ensure the program serves long-term homeowners.
Eligible First Mortgage Products
The LHC DPA program works alongside a wide range of first mortgage loan products. The second mortgage assistance layers on top of your qualifying first mortgage. You keep all the benefits of your loan type.
FHA Loans
Federal Housing Administration loans with low down payment requirements. Most common pairing with LHC DPA.
VA Loans
Veterans Affairs loans for eligible service members, veterans, and surviving spouses.
USDA / Rural Dev.
USDA Rural Development loans for eligible rural and suburban areas of Louisiana.
Fannie Mae
Conventional Fannie Mae loan products including HomeReady and standard conforming options.
Freddie Mac
Conventional Freddie Mac loan products including Home Possible and standard conforming options.
Note: FHA 203H is not an eligible product type. All loans must be AUS Approved / Eligible. Automated Underwriting System (AUS) approval required.
Who Qualifies for the LHC DPA Program?
First-Time Homebuyer Requirements
The LHC MRB Assisted Program is designed for first-time homebuyers. LHC defines the term more broadly than you might expect. Even if you have owned a home before, you may still qualify under the following criteria.
You Qualify as a First-Time Homebuyer If:
- You have not owned a principal residence in the past three years
- You are purchasing a home in a HUD-designated targeted area
- You are a divorced or legally separated individual who has previously only owned a home with a spouse
- You have only owned a principal residence that was not permanently attached to a permanent foundation (e.g., a mobile home)
Additional Qualifying Requirements:
- Minimum 640 credit score (all borrowers)
- Income at or below applicable AMI limit for your area
- Employment verification for 2 years; paystub within 30 days
- Must occupy the purchased home as primary residence
- Complete a HUD-approved homebuyer education course
- Must have a legally binding purchase agreement to reserve funds
- Non-occupant co-borrowers allowed on FHA loans only
Household Income Limits
Income limits are based on Area Median Income (AMI) and vary by parish and household size. Contact us for your specific limit.
Eligible and Ineligible Property Types
The LHC DPA program covers one-unit primary residences throughout all 64 Louisiana parishes. All properties must meet Parish Building Code requirements, Zoning Code requirements, and the physical standards of the applicable first mortgage loan type (FHA, VA, RD, FNMA, or FHLMC).
✅ Eligible Property Types
- Single-family homes (1 unit)
- Townhouses
- Primary residences in all 64 parishes
- Properties meeting applicable loan product physical standards
- Properties that are “move-in ready” at time of purchase agreement
❌ Ineligible Property Types
- Duplexes and multi-unit properties
- Vacation or second homes
- Mobile and manufactured homes
- Recreational properties
- Timeshares and community land trusts
- Condominiums and condotels
- Unimproved land
- Working farms and ranches
- Geodesic domes and leaseholds
Insurance Requirement: Eligible properties must be insured with standard homeowner’s coverage, including wind/hail insurance and flood insurance (if required by the loan product), in an amount equal to the first mortgage balance.
Why Louisiana Buyers Choose the LHC DPA Program
Every feature of this program was designed to reduce the barriers to homeownership for Louisiana residents who are ready to own but need a financial bridge to get there.
Covers Your Down Payment
The 4% soft second goes directly toward your down payment and closing costs, meaning you can purchase a home with significantly less cash out of pocket at closing.
Zero Interest
Unlike personal loans or credit card advances, the LHC assistance carries a 0% interest rate. You never pay interest on the assistance you receive.
Effectively a Grant
Stay in your home for five years as your primary residence and the entire soft second balance is forgiven. For long-term homeowners, this program is functionally a free down payment grant.
All 64 Parishes
Whether you are buying in New Orleans, Baton Rouge, Shreveport, Lake Charles, or anywhere in between. This program is available in every single Louisiana parish.
Flexible Loan Pairing
Pair the LHC DPA with FHA, VA, USDA, Fannie Mae, or Freddie Mac first mortgages. You keep all the advantages of your primary loan while adding the LHC assistance on top.
Homebuyer Education Included
All program participants complete a HUD-approved homebuyer education course, giving you the knowledge to be a confident, prepared homeowner from day one.
Homebuyer Education
All borrowers participating in the LHC MRB Assisted Program are required to complete a Homeownership Education class that meets National Industry Standards. This is a one-time requirement that prepares you for the responsibilities of homeownership.
- Complete through a HUD-approved housing counseling agency, or
- Complete an online course at your own pace
- Receive a certificate of completion to submit with your file
- Fannie Mae’s free online course at fanniemae.com/education is HUD-approved and accepted
Education First, Keys Second
This requirement is not a hurdle. It is an advantage. Educated buyers make better decisions, experience fewer surprises, and are more successful long-term homeowners.
Schedule an Appointment Today!Get Pre-Qualified in 4 Easy Steps
Funds are allocated on a first come, first served basis. The sooner you start, the sooner your assistance is reserved. Here is how the process works.
Schedule a Consultation
Book a no-obligation appointment with Charles. We review your income, credit, and goals to confirm LHC DPA eligibility and map out your path forward.
Complete Homebuyer Education
Complete your HUD-approved homebuyer education course online. We will point you to a free, accepted course that takes just a few hours to finish.
Get Under Contract
Once you find your home and sign a purchase agreement, we submit your complete application to LHC to reserve your assistance funds, first come, first served.
Close and Move In
Close your loan, receive your down payment assistance, and get the keys to your new home, with up to 4% in assistance already working for you.
LHC MRB Assisted Program: Key Guidelines
Understanding the core program guidelines helps set realistic expectations. Our team will walk you through every requirement specific to your situation and parish.
🏦 Assistance Structure
- DPA amount: 4% of final first mortgage loan amount
- Structured as a soft second mortgage
- 0% annual percentage rate (zero interest)
- No monthly payments on the second mortgage
- Balance forgiven after 5-year compliance period
- Balance due in full upon sale or refinance within 5 years
- Principal reduction from DPA not allowed
📋 Credit and Income
- Minimum 640 credit score (all borrowers)
- Non-targeted areas: household income at or below 115% AMI
- HUD targeted areas: household income at or below 140% AMI
- Conventional loans: household income at or below 80% AMI
- 2-year employment history and verification required
- Paystub within 30 days required
- AUS Approved / Eligible required
🏠 Property and Occupancy
- Single-unit primary residence only
- Eligible: single-family homes and townhouses
- Must meet Parish Building Code and Zoning Code
- Must meet applicable loan product physical standards
- Properties must be “move-in ready” at contract execution
- Must maintain as primary residence for full 5 years
- Property assumptions not allowed
📝 Application and Funding
- Legally binding purchase agreement required at application
- Application date = date complete application received by LHC-approved lender
- All applicants served on first come, first served basis
- Funds must be reserved. Availability is not guaranteed
- Non-occupant co-borrowers permitted on FHA loans only
- NOCB must complete Non-Occupying Co-Borrower Certification
- Main borrower must have some of their own income
🔁 First Mortgage Requirements
- Eligible: FHA, VA, RD, Fannie Mae, Freddie Mac
- Ineligible: FHA 203H
- 30-year first mortgage term
- 5-year second mortgage term
- Maximum purchase price: FHA loan limits for the parish
- Buy-downs not permitted
- Non-arm’s-length transactions follow loan product guidelines
🛡️ Insurance Requirements
- Standard homeowner’s coverage required
- Wind and hail coverage required
- Flood insurance required if mandated by loan product
- Coverage amount equal to first mortgage balance
- Conventional loans at or below 80% AMI: reduced MI tiers
- MI types: borrower-paid monthly, single premium, or split premium
Ready to Use Louisiana’s Down Payment Assistance?
Funds are first come, first served and can run out. If you are a first-time homebuyer in Louisiana, there is no reason to wait. Let’s confirm your eligibility and get your assistance reserved today.
Schedule an Appointment Today! Start Your Application Now
Max Mortgage LLC | NMLS #1446745 | Licensed Mortgage Lender | Gretna, LA
Charles Parharm | NMLS #1413036 | Licensed in Multiple States
This is not a commitment to lend. All loans subject to credit approval, income verification, and program availability.
LHC MRB Assisted Program funds are limited and allocated on a first come, first served basis.
Program guidelines, income limits, and purchase price limits are subject to change by the Louisiana Housing Corporation without notice.
Equal Housing Opportunity.