Mortgage in Louisiana
Louisiana has long been an attractive place to live, thanks to a vibrant economy, fantastic food, and New Orleans, a city that's always ready to have fun. The New Orleans metro area is also reasonably affordable, with the average home price being approximately $287,000 . If you're willing to look at other cities, like Baton Rouge, you'll find even better deals. It's not hard to see why people are choosing Louisiana as a destination. With our Louisiana mortgage calculator, you can see what you'll pay per month for a home in the Pelican State.
Louisiana Mortgage Calculator: See What You Can Afford
Prospective Louisiana residents have access to three main mortgage types.
- Louisiana conventional mortgage: Since Louisiana's home prices tend to be lower than average, most people can get a conforming loan (backed by Freddie Mac or Fannie Mae). These loans require a minimum credit score of 620 and a maximum debt-to-income ratio of 50%. They need a minimum of 3% down, but you will have to pay PMI if you don't have 20%.
- Louisiana FHA mortgage: FHA stands for "Federal Housing Administration," and these loans target people with less-than-ideal credit scores. If you have a credit score of 500 or above, you can get an FHA mortgage. You'll need 3.5% down if you have a credit score greater than 580 and 10% otherwise. You will have to pay PMI for the loan's life, but refinancing is always an option to avoid it once you have 20% equity.
- Louisiana VA mortgage: The Veterans Administration backs mortgages for current and former military members. These mortgages can have 0% down and don't require PMI. If you qualify, these loans are usually the best option.
Interest rates are low right now, so it's a good time to buy. Louisiana also has some programs to help cover the down payment cost, making it easier to stop renting and become a homeowner!
First-Time Homebuyers in Louisiana
There Louisiana Housing Corporation offers five programs that can help people become a homeowner in the state.
This program offers closing cost and down payment assistance between 5% and 9% of the loan amount. It also provides reduced mortgage insurance for conventional loans.
Eligibility Criteria: Income and property price limitations apply. Borrowers must have a credit score of 640 or higher.
The program's Assisted version offers down payment and closing cost assistance of 4% of the loan amount. The funds are a second mortgage.
Eligibility Criteria: Income and property price limitations apply (the constraints of this are higher than the program above). Borrowers must have a minimum credit score of 640.
Delta 100 offers up to 100% financing and up to 3% closing cost and prepayment assistance.
Eligibility Criteria: Income, purchase price, and area restrictions apply. Borrowers must invest 1% or $1,500, whichever is less. Borrowers must also complete an education course.
Resilience Soft Second is one of the best programs that the LHC offers. Borrowers can get a second loan of up to 20% of the purchase price to a maximum of $55,000. Additionally, borrowers can get up to $5,000 for closing costs for a total maximum of $60,000. What's most remarkable about this program is that these loans receive forgiveness if the borrower remains in the home for ten years!
Eligibility Criteria: Income and area restrictions apply.
Louisiana Mortgage Calculator: You Can Be a Homeowner!
For some of the best food, nightlife, and fun that you can have, check out Louisiana. It's a beautiful state with a rich, vibrant history. With our Louisiana mortgage calculator, you'll be able to see what you'll pay for housing if you decide to make a move!
