Louisiana LHC Down Payment Assistance Program Guide

Guide to the Louisiana LHC Down Payment Assistance Program

The Louisiana LHC Down Payment Assistance (DPA) Program is designed to provide financial help to eligible homebuyers by covering down payments and closing costs. The program is aimed at making homeownership more accessible, particularly for first-time buyers in Louisiana. Below is an updated guide for 2025, detailing the program’s eligibility requirements, application process, and benefits.

1. Program Overview:

• Purpose: The Louisiana LHC DPA Program offers financial assistance to homebuyers in the form of a grant or forgivable loan, making it easier for them to cover down payments and closing costs associated with purchasing a home.
• Assistance Amount: Eligible buyers can receive up to $10,000 in down payment and closing cost assistance, depending on their financial situation and the home’s price.
• Forgivable Loan Option: The program offers assistance in the form of a forgivable loan, meaning the loan may be forgiven after a specified period if the buyer meets the program’s terms.

2. Eligibility Requirements for 2025:

To qualify for the Louisiana LHC DPA Program, applicants must meet the following criteria:

• Income Limits: Your household income must be within the limits set by the program, which vary by parish and family size. These limits are adjusted annually to reflect changes in local housing markets.
• First-Time Homebuyer: The program is primarily available to first-time homebuyers, typically defined as someone who has not owned a home in the past three years. Exceptions may apply in certain areas.
• Credit Score: Applicants typically need a minimum credit score of 640 to qualify. However, the specific requirements may vary depending on the lender and other factors.
• Property Requirements: The property must be located in Louisiana and must serve as the buyer’s primary residence. Both new and existing homes are eligible, provided they meet the program’s price limits and quality standards.
• Homebuyer Education: Applicants must complete a homebuyer education course to help prepare them for the responsibilities of homeownership.

3. How to Apply:

The process for applying for the Louisiana LHC Down Payment Assistance Program is simple. Here are the steps you need to follow:

• Assigned Loan Officer: Once you begin your application, you will be assigned a loan officer who will guide you through the process and help you gather the necessary documentation.
• Documentation: You will need to provide essential documents such as proof of income, tax returns, a credit report, and a certificate from the homebuyer education course.
• Submit Your Application: After collecting the required documents, submit your application to the loan officer, who will ensure that all necessary information is included and process your application.

4. Homebuyer Education Course:

• Mandatory Requirement: All applicants must complete an approved homebuyer education course before they can qualify for the program.
• Course Options: The course is available both online and in person. Upon successful completion, you will receive a certificate, which is required for your loan application.

5. Down Payment Assistance and Loan Details:

• Grant or Forgivable Loan: The assistance is provided as a grant or a forgivable loan, which means you do not need to repay the loan as long as you remain in the home for a specified period, typically five years.
• Eligible Costs: The assistance can be used to cover down payment costs, closing costs, and other fees associated with the purchase of the home.

6. Finalizing the Loan:

• Approval Process: Once your application is approved, your loan officer will guide you through the final steps, including signing the necessary loan documents and preparing for closing.
• Closing Costs: If there are any closing costs not covered by the assistance, you may be responsible for paying them yourself. Your loan officer will help you understand the full breakdown of what is covered and what you need to pay.

Our dedicated loan officers are here to help you at every step of the process. They will assist you with verifying eligibility, gathering documents, and ensuring you understand the details of the Louisiana LHC Down Payment Assistance Program. With their support, you can confidently take advantage of the program and make homeownership more attainable.