Down Payment Assistance in Louisiana, Explained Properly
Program and regulatory figures verified October 5, 2026. Details change; confirm your scenario with us.
Louisiana rewrote its entire down payment assistance line-up less than a month ago. Almost nothing you will read elsewhere has caught up.
What changed on 09/09/2026?
All four of the Louisiana Housing Corporation's homeownership programmes got new names, under a new umbrella brand: Louisiana Home Starts Here. The Single Family Lenders' Guide carrying them was published 09/10/26, and each programme page says that loans reserved before 09/09/2026 still follow the old guidelines.
| What it is called now | What it was called |
|---|---|
| HomeStart Assist | MRB Assisted |
| HomeStart Advantage | Keys for Service |
| HomeStart Plus | Pathways |
| HomeStart Ready | Premier |
If you have been reading about "Keys for Service" or "LHC MRB Assisted," you have been reading about programmes that still exist but no longer go by those names — and in one case no longer work the way the old name implies. The full rename map.
The change that is more than a name
"Keys for Service" meant what it said: it was built around service occupations. HomeStart Advantage is not. The Lenders' Guide, under Eligible Borrowers:
"Available to qualified homebuyers; no specific service-related occupation is required"
and under First-Time Homebuyer: "Not required; however, the borrower may not own another residential property at closing."
So a programme that used to be for teachers, nurses and first responders now takes any Louisiana buyer, first-time or repeat, in any parish, earning up to $125,000, and pays 4% forgivable. That is one of the widest doors in the country, and it opened last month under a name nobody is searching for yet. What it takes to qualify.
The four programmes
| Assistance | Forgiven | First-time? | Income cap | |
|---|---|---|---|---|
| HomeStart Assist | 4% of the first mortgage | 60 months | Yes* | 115% / 140% AMI (govt) |
| HomeStart Advantage | 4% of the first mortgage | 60 months | No | $125,000 |
| HomeStart Plus | 20% / $55,000 + $5,000 | 1/120 monthly | Yes | 80% AMI |
| HomeStart Ready | None | — | No | $99,000 |
* Waived in targeted areas and for eligible veterans. Each in full.
The biggest assistance in the country, and where it reaches
HomeStart Plus uses Community Development Block Grant disaster recovery funds, and the numbers are unlike anything else: up to 20% of the purchase price, capped at $55,000, plus up to $5,000 toward closing costs.
"Disaster recovery" sounds narrow. It is not. The eligible parish list is the union of the Hurricane Laura, Delta and Ida declarations — 47 of Louisiana's 64 parishes, including Orleans and East Baton Rouge. Nearly three-quarters of the state.
The conditions are real and worth reading before you plan around it: a minimum front-end ratio, a cap on what you may keep in the bank after closing, no Special Flood Hazard Area properties, and an LHC environmental review that can take two weeks. Where it applies · The rules that catch people.
Does Louisiana assistance get forgiven?
Yes — which is worth saying plainly, because its neighbours do not.
| State | What happens to the assistance |
|---|---|
| Louisiana | Forgiven — 60 months on Assist and Advantage, ten years on Plus, zero interest throughout |
| Indiana | Never forgiven, but deferred — no payment until you sell |
| Alabama | Never forgiven and amortizing — a payment every month |
Forgiveness is conditional, not automatic: it depends on maintaining occupancy and the programme's requirements. And the two mechanics differ — Assist and Advantage forgive the entire balance at once at 60 months, while Plus burns down 1/120 every month. What triggers repayment.
One trap worth knowing before you choose a loan product
On HomeStart Assist, the conventional route is the narrower one. Government loans reach 115% of area median income outside targeted areas and 140% inside them. Conventional is capped at 80% of AMI, and the guide is explicit that a conventional HomeStart Assist loan "may not be originated" above it.
That is the reverse of how it works in some neighbouring states, which is exactly why an assumption carried across a state line goes wrong. The detail · Every income rule.
Frequently asked questions
What are the Louisiana HomeStart programs?
The Louisiana Housing Corporation offers four: HomeStart Assist, HomeStart Advantage, HomeStart Plus and HomeStart Ready, under the umbrella brand Louisiana Home Starts Here. All four were renamed on 09/09/2026, from MRB Assisted, Keys for Service, Pathways and Premier respectively.How much down payment assistance can I get in Louisiana?
HomeStart Assist and HomeStart Advantage each provide 4% of the first mortgage amount as a zero-interest forgivable second. HomeStart Plus provides up to 20% of the purchase price capped at $55,000, plus a closing cost grant of up to $5,000, in 47 of Louisiana's 64 parishes.Is Louisiana down payment assistance forgiven?
Yes, conditionally. HomeStart Assist and HomeStart Advantage forgive the entire balance at the end of 60 months if the borrower has maintained the required occupancy and no repayment event has occurred. HomeStart Plus is forgiven monthly at 1/120 over 10 years of continued owner occupancy.What credit score do I need for Louisiana down payment assistance?
640 on every LHC programme, rising to 660 for manufactured homes. Borrowers must have at least two credit scores for mortgage revenue bond programmes and all three credit scores for CDBG programmes such as HomeStart Plus.Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal or tax advice. Louisiana Housing Corporation programme terms, income limits and purchase price limits are set by LHC and change; figures here carry the date we verified them against LHC's published documents. LHC assistance is a zero-interest forgivable second mortgage, forgiven only if occupancy and programme requirements are maintained. Federal recapture tax may apply on HomeStart Assist bond loans; consult a tax advisor. Loans are subject to borrower and property qualification.