Louisiana Mortgage Overview
There are many great reasons to live in
Louisiana. Whether you love the food, music, or community, Louisiana has a
lower than average cost of living and home prices. The average home price is
around $163,000. If you're ready to join the 4.6 million people living in
Louisiana, here are your top mortgage options:
Louisiana FHA loans
If you have less than
perfect credit, the FHA loan is a great choice. You need just a 580 credit
score and 3.5 percent down. It's a great way to get into a home and stop renting.
Even if you have a 500 - 579 credit score, you can qualify with a 10 percent
down payment. Make sure your debts are manageable and you have stable
employment for the best chances.
Louisiana VA loans
Veterans deserve help
buying a home and the VA provides it with 100 percent financing. All you need
is a 620 credit score and proof you have enough disposable income to cover the
daily cost of living for your family. The VA loan doesn't require mortgage
insurance and has the most flexible guidelines for our veterans.
Louisiana USDA loans
Living in a 'rural' area
doesn't mean cornfields and isolation. The USDA has loans available in low
populated areas of LA right outside the city lines. Low to moderate-income
families are eligible for this 100 percent financing program. You need just a
640 credit score, stable income and employment, and average debts to qualify.
Louisiana conventional loans
If you have great
credit (660+), stable employment, and a 40 percent or lower debt ratio, a
conventional loan is a great option. You can put just 3 percent down but will
pay PMI until you owe less than 80 percent of the home's value.
First-Time Homebuyer Programs in Louisiana
MRB Program
If you make less than 80 percent
of the area's median income, the MRB
Program may help. You need a 640 credit score and must be a first-time
homebuyer to get the down payment/closing cost assistance (5 to 9 percent) and
low interest rate program.
MRB Home and Assisted Program
If you don't
have enough money to meet the down payment or closing costs the MRB Home and Assisted Program
may help. You must have 'low' income for the area and a minimum 640 credit
score. You can receive up to 4 percent of the sales price for down payment and
closing costs as a soft second mortgage.
Resilient Soft Second
If you make less than 80
percent of the area's median income, the RSS offers a soft second loan. You can
borrow up to $55,000 and $5,000 for closing costs. The loan isn't payable until
you refinance or sell the home. Only certain parishes are
included.
MCC Tax Certificate
Low-income Louisiana
families may qualify for the MCC
certificate which provides a tax credit for up to 40 percent of the
interest paid for the year, up to $2,000.
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