Three sums, and the one everybody skips
Program and regulatory figures verified October 5, 2026. Details change; confirm your scenario with us.
In most states the only question is how much. In Louisiana the amount depends on which of two completely different scales applies to you.
Sum one: the 4% programmes
HomeStart Assist uses the original principal first mortgage amount; HomeStart Advantage uses the final first mortgage amount. Close enough in practice that the arithmetic is the same.
| First mortgage | 4% assistance |
|---|---|
| $150,000 | $6,000 |
| $175,000 | $7,000 |
| $200,000 | $8,000 |
| $225,000 | $9,000 |
| $250,000 | $10,000 |
| $275,000 | $11,000 |
| $300,000 | $12,000 |
No cap on these, so the figure scales all the way up to the price limit. Which of the two fits your file.
★ Sum two: HomeStart Plus, and where the cap bites
20% of the purchase price, capped at $55,000. Twenty percent of $275,000 is $55,000, so that is the crossover.
| Purchase price | 20% of price | You receive | Plus closing grant |
|---|---|---|---|
| $150,000 | $30,000 | $30,000 | up to $5,000 |
| $200,000 | $40,000 | $40,000 | up to $5,000 |
| $250,000 | $50,000 | $50,000 | up to $5,000 |
| $275,000 | $55,000 | $55,000 — crossover | up to $5,000 |
| $350,000 | $70,000 | $55,000 | up to $5,000 |
Set that against the 4% table and the scale is clear: on a $250,000 purchase, Plus pays roughly $50,000 where the statewide programmes pay $10,000.
Louisiana's two largest markets sit just under the crossover — New Orleans at $261,002 and Baton Rouge at $248,895 — so most buyers there are in the band where the full percentage applies. Whether your parish qualifies.
★ Sum three: what you have to put in
This is the one that is never on a brochure, and HomeStart Plus is unusual in setting both a floor and a ceiling.
| Purchase price | Minimum contribution greater of 1% or $1,500 | Maximum investment greater of 10% or $10,000 |
|---|---|---|
| $150,000 | $1,500 | $15,000 |
| $175,000 | $1,750 | $17,500 |
| $200,000 | $2,000 | $20,000 |
| $250,000 | $2,500 | $25,000 |
| $300,000 | $3,000 | $30,000 |
The minimum must come from your own funds. The maximum includes that minimum. And separately, after closing you may hold no more than six months of your housing payment in liquid assets, with any excess reducing the closing cost grant — retirement accounts excluded. The conditions.
What the assistance actually costs you
Nothing, if you stay and the conditions hold. All three seconds carry zero interest, and forgiveness clears the balance at 60 months on Assist and Advantage or 1/120 a month on Plus.
The honest way to hold it in your head is as a loan you reasonably expect not to repay — not as a grant. If you leave early, you repay what is outstanding, at zero interest, and nothing more. How the two clocks work.
What arithmetic cannot tell you
Whether your parish is on the Plus list. 47 of 64 are. That single fact is worth up to $45,000 against the 4% programmes.
Whether the property is in a Special Flood Hazard Area. No table knows your address, and it is a yes/no on the biggest programme.
Your front-end ratio. Plus needs PITI between 28% and 33%, and insurance is part of that.
Your parish income limit. LHC's limit PDFs were not reachable when we checked; the current figures come from eHousing Plus.
What is not on this site
No rates, no APRs, no payment figures, anywhere — including the bond rate one of the parish authorities publishes on its own page. Send us the scenario and we will run your actual numbers.
Frequently asked questions
How much down payment assistance will I get in Louisiana?
HomeStart Assist and HomeStart Advantage pay 4% of the first mortgage amount, so $10,000 on a $250,000 loan. HomeStart Plus pays 20% of the purchase price capped at $55,000, so about $50,000 on a $250,000 purchase, plus a closing cost grant of up to $5,000.At what price does the HomeStart Plus $55,000 cap apply?
At $275,000. Twenty percent of $275,000 is exactly $55,000, so purchases above that receive the flat cap rather than the full percentage. New Orleans and Baton Rouge typical values both sit below that point.Do I have to put my own money in for HomeStart Plus?
Yes. The minimum borrower contribution is the greater of 1% of the purchase price or $1,500 from the borrower's own funds. There is also a maximum borrower investment of the greater of 10% of the purchase price or $10,000, including that minimum.Does Louisiana assistance cost anything if I stay?
No, if the conditions hold. All three LHC second mortgages carry zero interest, and the balance is forgiven at 60 months on HomeStart Assist and Advantage or at 1/120 monthly over ten years on HomeStart Plus, subject to maintained occupancy.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.