Louisiana is one of the more affordable states in the South for a first-time buyer, and the numbers back it up: home prices across most of the state — from Baton Rouge and Lafayette to Shreveport, Lake Charles, and the suburbs ringing New Orleans — sit below the national average. A normal income buys a real house here. The one thing every Louisiana buyer has to plan for that buyers in other states do not is insurance: flood and homeowners coverage can be a meaningful line item, especially in coastal and low-lying parishes, and it deserves attention early. The good news is that the state runs generous down payment assistance to help you get in the door. This page explains all of it in plain English, like a friend who has done it would.
Louisiana’s state assistance is notably generous — some of it can cover a large share of your loan amount without interest or repayment. Let’s walk through how it works and what you will actually need.
The headline program: Louisiana Housing Corporation (LHC)
Louisiana’s housing finance agency is the Louisiana Housing Corporation, or LHC. Its main homeownership help for first-time buyers comes through the MRB (Mortgage Revenue Bond) Home and MRB Assisted programs. “Mortgage Revenue Bond” just refers to how the program is funded — for you, what matters is that it delivers an affordable fixed-rate mortgage plus down payment and closing cost assistance.
MRB Home
The MRB Home program pairs a fixed-rate mortgage with an optional grant of up to 9% of the loan amount — and here is the standout part: that grant carries no interest and no repayment. The exact percentage typically ranges from about 5% to 9% depending on your loan amount, but in every case it is genuine assistance you do not pay back. On a Louisiana home, 5–9% of the loan amount is often enough to cover the entire down payment with room left for closing costs. This is one of the more generous grant structures among state programs, which is why it is worth asking about first.
MRB Assisted
The MRB Assisted program provides assistance of 4% of the loan amount, structured as an optional second mortgage that is forgiven after three years. So if you stay in the home for three years, that 4% becomes money you never repay. The tradeoff versus MRB Home is a smaller assistance amount, but the forgiveness structure and different income parameters can make it the right fit for some buyers. Your LHC lender will help you see which program leaves you better off.
Income limits, credit, and eligibility
Here is what LHC’s programs generally expect:
- For the MRB Home grant, your household income must be at or below 80% of the area median income (AMI) for your parish — this is the more income-restricted, more generous track.
- A minimum credit score of 640.
- You are a first-time buyer, defined as not having owned a primary residence in the last three years (with exceptions in targeted areas and for veterans).
- The home will be your primary residence.
- The purchase price falls under LHC’s limit for your parish.
LHC also offers other products, including a Preferred Conventional program, for buyers whose income runs above the MRB Home limits, so if you do not fit one track your lender can point you to another.
Homebuyer education
LHC requires homebuyer education, usually available online or in person. It covers budgeting, credit, the mortgage process, and — especially relevant in Louisiana — how to plan for insurance and long-term ownership costs. It takes a few hours and produces the certificate your lender needs on file.
Which loan is right for you?
LHC assistance layers onto a standard mortgage. Here is how the four main loan types fit Louisiana.
FHA loans
FHA loans allow 3.5% down and forgive lower credit scores, making them a common pairing with LHC assistance — the grant easily covers that 3.5% and closing costs. The tradeoff is mortgage insurance that generally lasts the life of the loan. See our FHA loan guide.
USDA loans
Much of Louisiana outside the major metros is rural and USDA-eligible, and a USDA loan means 0% down. Pair that with LHC’s grant applied to closing costs and your cash to close can be minimal. If you are buying in a small town or rural parish, check eligibility first with our USDA loan guide.
VA loans
If you have served, a VA loan is usually your strongest option: 0% down, no monthly mortgage insurance, and competitive rates. Louisiana has a sizable veteran community, including around Fort Johnson and Barksdale Air Force Base, and LHC assistance can still help with closing costs on top of a VA loan.
Conventional loans
Conventional loans through HomeReady or Home Possible go as low as 3% down and let you cancel mortgage insurance at 20% equity. LHC’s Preferred Conventional program is built around this, and if your credit is strong it can be the cheapest long-term route.
What homes cost and what you’ll need
Plan on closing costs of roughly 2% to 5% of the purchase price — lender fees, title, appraisal, and prepaid taxes and insurance. Because Louisiana homes are affordable and LHC’s grant can be applied to closing costs, many first-timers come to closing with little cash out of pocket.
Two things every Louisiana buyer should understand honestly. First, property taxes here are among the lowest in the nation, and Louisiana offers a homestead exemption that shields a meaningful portion of your home’s assessed value from parish property taxes on your primary residence — a real, ongoing savings, so file for it after you close. Second, and this is the part that trips people up: insurance is the cost that matters most in Louisiana. Homeowners insurance runs higher here than in most states, and if your home is in a flood zone (much of south Louisiana is), you will likely need separate flood insurance. Get insurance quotes early in your search, before you make an offer, because the annual premium directly affects your monthly payment and your affordability. Your lender escrows taxes and insurance into your monthly payment, so a high insurance quote raises that payment.
The takeaway: with low prices, very low property taxes, a low-down-payment loan, and down payment assistance, Louisiana is attainable — just budget carefully for insurance from day one.
The buying process in Louisiana
Start by getting pre-approved with an LHC-participating lender, which sets your real budget. Given the insurance factor, ask your lender to estimate homeowners and flood insurance for the areas you are considering, so your budget is realistic. Then bring on a real estate agent, and understand a recent nationwide change first.
The NAR settlement that took effect on August 17, 2024, changed how buyer agents are paid, Louisiana included. In practice: you now sign a written buyer agreement before an agent tours homes with you, and the buyer agent’s commission is no longer posted as a set number on the MLS — it is negotiated deal by deal and may be paid by the seller, by you, or split. Read our NAR settlement explainer for the details, and use our finding a real estate agent guide to choose well.
The rough sequence:
- Get pre-approved with an LHC participating lender.
- Complete your homebuyer education course.
- Get early insurance quotes (homeowners and, if needed, flood) for your target areas.
- Sign a buyer agreement and start touring homes.
- Make an offer; negotiate price, repairs, and closing-cost help.
- Complete a home inspection and lender appraisal.
- Finalize your loan and LHC assistance through underwriting.
- Close, get your keys, and file for your homestead exemption.
Our full home buying process guide walks through each step.
Louisiana first-time buyer FAQ
Is the MRB Home assistance really a grant I do not repay?
Yes. The MRB Home program’s optional grant — up to 9% of the loan amount, typically 5% to 9% depending on loan size — carries no interest and no repayment. It is one of the more generous grant structures among state programs. To qualify, your household income generally must be at or below 80% of your parish’s area median income.
What is the difference between MRB Home and MRB Assisted?
MRB Home offers a larger grant (up to 9%) you never repay, with a lower income limit. MRB Assisted offers 4% as a second mortgage that is forgiven after three years, with different income parameters. Your lender can compare them for your situation.
Do I really need flood insurance?
It depends on the property. Much of south Louisiana sits in flood zones where lenders require separate flood insurance, and even outside mapped zones it is often wise. Get quotes early, because the premium affects your monthly payment and how much house you can afford. This is the single most important budgeting factor in Louisiana.
Are Louisiana property taxes really low?
Yes — among the lowest in the country, and the homestead exemption shields a portion of your primary residence’s assessed value from parish taxes. File for it after closing. The catch is that insurance, not property tax, is the big ongoing cost here.
What credit score do I need?
LHC programs generally require a minimum credit score of 640. If you are below that, a few months of on-time payments and paying down credit-card balances can lift your score and improve your rate.
Where do I start?
Begin with our first-time buyer guide, then contact an LHC-participating lender to get pre-approved and request early insurance estimates. You can also compare other state programs if you are considering a move.
Sources: Louisiana Housing Corporation (LHC, lhc.la.gov), U.S. Department of Housing and Urban Development (HUD), U.S. Department of Agriculture (USDA) Rural Development, and the National Association of Realtors (NAR). Program amounts, income limits, and terms change periodically; confirm current details with an LHC-participating lender. Last reviewed July 2026.
More Louisiana first-time buyer resources
Ready to go deeper? Our complete guide to Louisiana first-time home buyer programs breaks down every state loan, down payment assistance option, and tax credit available to first-time buyers here.
More Louisiana city guides
Buying in a specific Louisiana metro? See our first-time buyer guides for New Orleans, each covering the city’s own local down payment programs.
First-time home buyer grants in Louisiana
Looking specifically for grant money? Our guide to first-time home buyer grants in Louisiana covers which programs are true grants, which are forgivable, and the truth about the widely advertised federal grant.