Louisiana Housing Corporation offers HomeStart Assist and HomeStart Advantage with 4% assistance, plus HomeStart Plus in designated disaster-affected parishes. New Orleans and Shreveport offer separate local homebuyer programs. Program names and terms changed in September 2026, so use the current HomeStart rules for a new reservation.
Guide reviewed on October 20, 2026. Individual source dates appear below. Programs, limits and funding change, so confirm with the agency and a participating lender before you rely on a figure.
What is down payment assistance?
Down payment assistance (DPA) is money or financing from a housing agency, nonprofit, lender or employer that may help with your down payment or closing costs. Each program sets its own rules. A low-down-payment mortgage is a loan option, not itself an assistance award.
Types of down payment assistance
Grants
Assistance that may not require repayment when you satisfy the program terms. Read any recapture conditions.
Forgivable loans
A second loan whose balance may be forgiven over a required period of homeownership. Selling or moving early can trigger repayment.
Deferred-payment loans
A loan with payments postponed, often until you sell, refinance, move out or reach maturity. Deferred does not mean forgiven.
Repayable loans
Assistance repaid over time. Check the interest rate, monthly payment and effect on your mortgage qualification.
Selected for statewide reach, distinct assistance options and local coverage. This is an editorial shortlist, not a ranking of the best program for you. Alternatives and add-ons are identified below. Verify current funding before applying.
What it offers: 4% of the original first mortgage amount toward purchase costs.
Repayment: A 0% second mortgage, fully forgiven after 60 months if all requirements are met.
Works with: An eligible 30-year fixed first mortgage through an approved participating lender.
Who qualifies: Designed for first-time buyers. Minimum 640 credit score, household-income and property rules, and approved education for at least one occupying borrower.
Availability: The program is listed by its administrator. Confirm current funding, reservation availability and lender participation before relying on assistance.
Where it applies: Designated parishes affected by Hurricanes Laura, Delta or Ida
What it offers: Up to 20% of purchase price, capped at $55,000 in second-mortgage assistance, plus up to $5,000 closing-cost assistance.
Repayment: A 0% second mortgage forgiven monthly over ten years, subject to program conditions.
Works with: An eligible 30-year fixed first mortgage through a participating lender.
Who qualifies: First-time buyer in a designated hurricane-affected parish, household income at or below 80% AMI, minimum 640 score, education, insurance and property rules. Minimum contribution is the greater of 1% or $1,500.
Availability: The program is listed by its administrator. Confirm current funding, reservation availability and lender participation before relying on assistance.
What it offers: 4% assistance based on the final first mortgage amount.
Repayment: A 0% second mortgage, fully forgivable after 60 months when requirements are met.
Works with: An eligible 30-year fixed first mortgage through an approved lender.
Who qualifies: All occupations; first-time status not required, but no other residence at closing. Household income up to $125,000, minimum 640 score, education and applicable price/property limits.
Availability: The program is listed by its administrator. Confirm current funding, reservation availability and lender participation before relying on assistance.
What it offers: Up to $55,000 in soft-second assistance; eligible closing-cost help is capped at $5,000 and 50% of closing costs.
Repayment: A 0% ten-year forgivable second loan. Sale or moving within five years requires full repayment; later forgiveness follows the program schedule.
Works with: An approved first-mortgage lender and City review.
Who qualifies: Orleans Parish, first-time buyer or no home ownership for three years, income at or below 80% AMI, education, property standards and maximum $324,000 price.
Availability: The program is listed by its administrator. Confirm current funding, reservation availability and lender participation before relying on assistance.
Where it applies: Eligible properties in Shreveport
What it offers: Up to 20% of sales price or appraised value, whichever is less, subject to program limits.
Repayment: The public page and linked program sheet do not state full repayment terms. Obtain the current assistance agreement.
Works with: A City-approved private lender; lender submits the assistance request.
Who qualifies: First-time buyer, income at or below 80% AMI, education, acceptable credit and property standards. The linked older sheet restricts purchases to targeted neighborhoods and requires own funds. Confirm current boundaries and amounts.
Availability: The program is listed by its administrator. Confirm current funding, reservation availability and lender participation before relying on assistance.
Compare geographic coverage in selected locations among the five programs featured on this page. This is not an exhaustive statewide ranking. Counts include conditional options, alternatives and add-ons, not five awards you can necessarily combine. Address boundaries, individual eligibility and available funding still apply.
Method: count each distinct referenced program once per location, then sort by count and alphabetically for ties. Coverage describes this guide only and does not establish live funding.
Could I be eligible for DPA in Louisiana?
Start with your planned location and the specific program. Common factors include:
Household income and size, with limits that may vary by county.
First-time buyer or first-generation status, where required.
Purchase price, property type and use as your primary residence.
Credit, debt-to-income ratio and eligibility for the required first mortgage.
Any occupation, residency or targeted-area conditions.
Your Dream Score can help you explore potential matches. The administrator and lender determine eligibility and approval.
How do I apply for down payment assistance in Louisiana?
Choose an LHC-approved participating lender and ask which current HomeStart program fits your purchase.
Complete approved homebuyer education and provide household-income, credit, asset and property documents.
For HomeStart Plus, have the lender verify the parish, flood and environmental requirements before you rely on the program.
For New Orleans or Shreveport assistance, use the City-approved application and lender process. Confirm funding and the current loan agreement before closing.
Bring your funding sources together.
DPA, savings and eligible gifts through your future Dream Fund can be parts of one homebuying plan.
Estimate your down payment and closing costs, then review your lender's cash-to-close figure.
Confirm which assistance programs work with your mortgage and with each other. Some options are alternatives, not cumulative awards.
Subtract confirmed, usable savings and approved assistance to understand the remaining gap. Keep potential awards separate.
Plan a Dream Fund campaign target for the gap. A pledge or fundraising estimate is not money available to close.
Before relying on gifts, ask your lender about acceptable donors, no-repayment gift letters, transfer evidence and any minimum own-funds contribution.
Your lender and program must approve the combination. A campaign record alone does not establish that a gift is acceptable for your mortgage. Gifts must be genuine and must not be disguised loans.
Home funds are not open yet. You can get your Dream Score now and join the campaign waitlist.
Can I combine Louisiana assistance with gift funds or employer help?
Gift funds
New Orleans' linked underwriting guidelines allow documented gift funds up to 10% of the purchase price, with a gift letter and bank statement. Shreveport's linked older sheet excludes gifts from its required own-funds contribution. Confirm current rules and lender acceptance before setting your campaign target.
Employer help
The reviewed HomeStart product pages do not establish employer-assistance combinations. Ask your lender and program administrator before including an employer benefit.
Other assistance
HomeStart Assist, Plus and Advantage are separate mortgage products, not a promise that all three combine. New Orleans assistance depends on the affordability gap. Have each administrator and lender approve the full funding plan.
Is Keys for Service still the current Louisiana program?
LHC now lists HomeStart Advantage. Its page directs loans reserved before September 9, 2026 to legacy Keys for Service guidelines. Use the current rules for a new reservation.
Can repeat buyers receive Louisiana assistance?
HomeStart Advantage does not require first-time status, but the borrower cannot own another residence at closing. Other programs have different ownership-history requirements.
Does HomeStart Ready provide down payment assistance?
No separate LHC down payment or closing-cost assistance is currently provided with HomeStart Ready, according to its program page. It is not one of the five assistance programs listed here.
Can I use my Dream Fund with Louisiana assistance?
Potentially, if the lender and program accept the gifts and documentation. Some required borrower contributions cannot come from gifts. Confirm that requirement before counting campaign funds.
Disclosure: This content is for informational purposes only and does not constitute financial, legal, mortgage, or tax advice. Program rules vary by lender, location and loan. Dreamfund is not affiliated with any housing agency named here. Consult a licensed mortgage professional for guidance specific to your situation. Dream Fund AI LLC does not guarantee any savings outcome, loan approval, or home purchase result.