New Orleans offers one of the larger city programs in the South — a Soft Second forgivable loan of up to $55,000 — which matters all the more given the city’s high insurance and flood-zone costs.
This guide focuses on what first-time buyers in New Orleans specifically can tap in 2026 — the local programs run by the city and county, the statewide help you can layer on top, and what it realistically takes to buy here.
New Orleans’s own first-time buyer programs
New Orleans buyers can draw on the city’s Soft Second plus the local finance authority:
- City of New Orleans Soft Second Mortgage — from the Office of Community Development, a 0%-interest forgivable “soft second” of up to $55,000 (capped at 50% of the purchase price) plus up to $5,000 in closing-cost help, forgiven over 10 years (beginning in year 5), for buyers at or below 80% of area median income (max price $324,000)
- Finance New Orleans Down Payment Assistance (Green Mortgage) — a 0%-interest forgivable second worth 2–5% of the first-mortgage amount, forgiven after 3 years, for households generally earning below $99,000 (660 minimum credit score, 1–4 unit primary residence in Orleans Parish)
- Neighborhood Housing Services of New Orleans — a nonprofit offering HUD-approved homebuyer education and access to affordable homes and layered assistance
These local programs are the piece most buyers miss, because they are run by the city or county rather than a lender — and they can often be combined with the statewide programs below.
Statewide programs you can also use in New Orleans
On top of New Orleans’s local help, every Louisiana buyer can access the state’s housing finance programs — below-market loans, down payment assistance, and a possible tax credit. We cover them in full in our guide to Louisiana first-time home buyer programs, and the wider local picture in our Louisiana first-time home buyer guide. In many cases you can stack a city program with a state program to cover most or all of your cash to close — a lender who works with both can structure it.
What it takes to buy in New Orleans
New Orleans’s median home value is around $246,000 — softened recently, though high insurance and flood-zone costs strain budgets. That is what makes the city’s up-to-$55,000 Soft Second so valuable: a large, mostly forgivable loan that can cover much of the purchase for an eligible buyer. Louisiana’s statewide LHC programs can layer on top.
Before you shop, pin down your budget. Our home affordability guide walks through how income, debt, and rates set your price range, and our first-time home buyer checklist keeps the rest of the process on track.
Loan options for New Orleans buyers
Most New Orleans first-time buyers use one of a few loan types, each of which can pair with the assistance above:
- FHA loans — 3.5% down with flexible credit, popular with first-time buyers
- Conventional loans — as little as 3% down, with reduced mortgage insurance through housing-agency versions
- VA and USDA loans — zero down for eligible veterans and in qualifying areas
- Down payment assistance — the programs above that layer on top (see our down payment assistance guide)
How to buy your first home in New Orleans
- Check your budget and credit first — see our guide to credit score requirements.
- Complete a homebuyer education course — nearly every New Orleans program requires one, and it is usually free.
- Find a lender who works with both New Orleans and Louisiana programs, and ask them to run the local and state options together.
- Get pre-approved, then line up your assistance before you make an offer.
One note: local and state program funding and terms change, and some rounds close when the money runs out. Always confirm current amounts and availability with the program administrator before counting on a figure.
New Orleans first-time buyer FAQ
What down payment help is available in New Orleans?
The flagship city program is the New Orleans Soft Second Mortgage, a 0% forgivable loan of up to $55,000 (capped at 50% of the price) plus $5,000 in closing costs, forgiven over 10 years, for buyers at or below 80% of area median income (max price $324,000). Finance New Orleans offers a separate forgivable second of 2–5% of the loan. Louisiana’s statewide LHC programs apply too.
Can I combine New Orleans city programs with Louisiana state programs?
Often yes. City or county assistance is usually designed to layer on top of a first mortgage, and many buyers stack it with a Louisiana state program to cover most of their down payment and closing costs. A lender who participates in both can confirm what combines. See our Louisiana programs guide for the statewide options.
Do I have to be a first-time buyer to qualify in New Orleans?
The city Soft Second requires that you not have owned a home in the past three years (with displaced-homemaker exceptions), income at or below 80% of area median income, HUD-approved homebuyer education, and a home under $324,000 within city limits. Finance New Orleans has no strict first-time rule but requires education and a 660 credit score, with income generally below $99,000. Confirm current terms with each administrator.
How does the New Orleans Soft Second work?
The City of New Orleans Soft Second is a 0%-interest forgivable loan of up to $55,000 (capped at 50% of the purchase price), plus up to $5,000 in closing-cost help. It is forgiven over 10 years — forgiveness begins in year 5 — as long as you keep the home as your primary residence; selling or moving out early triggers repayment of the unforgiven balance. You must be a first-time buyer at or below 80% of area median income, buying under $324,000. Confirm current terms with the city’s Office of Community Development.