Louisiana First-Time Homebuyer Programs | The Lenders Network

 

Market Rates GNMA Program

 

Delta 100 Program

This parish-specific program helps some first-time homebuyers who lack traditional credit but have demonstrated the ability, willingness, and commitment to homeownership through alternate avenues.

This program helps prospective homebuyers who may not have enough money to meet down payment and closing costs. The program has interest rates that are usually at the market level.

Requirements

  • Must be a first-time homebuyer unless the property is in a targeted area
  • Property must be in Louisiana
  • Borrower must meet income requirements
  • The purchase price cannot exceed established purchase price limits
  • Annual income may go up to 140% of the median income – depending on family size and the increased Targeted Acquisition Limit.
  • Minimum Credit Score 640

 

Benefits

  • Down payment and closing costs assistance come in the form of a soft-second that is equal to 4% of the mortgage amount
  • Reduced MI for Conventional Loans

 

National First-Time Homebuyer Loan Programs

  • FHA LoansFHA home loans are very popular with first-time homebuyers cause they require a 580 credit score with just a 3.5% down payment. Debt-to-income ratios up to 50% are allowed making them perfect for low-income borrowers.
  • Conventional LoansConventional loans require a 620 credit score and a 5% to 20% down payment. If you put 20% or more down, mortgage insurance will not be required.
  • USDA LoansUSDA mortgage loans are for low-to-median income borrowers buying a home located in a USDA-eligible rural area. They provide 100% financing with a 620 or higher credit score. Mortgage insurance is required but the rate is the lowest of any type of mortgage program available.
  • VA Loans – Veterans of the U.S. military may be eligible for a VA home loan. No down payment or mortgage insurance is required and veterans with a 580 to 620 credit score are eligible.
  • HomeReady and Home Possible Loans – Freddie Mac and Fannie Mae created the HomeReady and Home Possible loan programs for low-income first-time homebuyers whose income does not exceed 100% of the area median income requiring just a 3% down payment and a 620 credit score.

 

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