In Louisiana, conventional is the narrower route
Program and regulatory figures verified October 5, 2026. Details change; confirm your scenario with us.
Two borrowers with the same income can get opposite answers on the same Louisiana programme, decided only by which loan product the file is written on.
What the guide says
From the LHC Lenders' Guide, under HomeStart Assist's Maximum Income:
"FHA, VA and RD loans, annual household income may not exceed 115% of the applicable AMI in non-targeted areas or 140% of the applicable AMI in targeted areas, adjusted for household size and property location.
Conventional restriction: Fannie Mae HFA Preferred and Freddie Mac HFA Advantage loans are limited to borrowers whose qualifying income does not exceed 80% of the applicable AMI. A conventional HomeStart Assist loan may not be originated when qualifying income exceeds 80% AMI."
"May not be originated" is unusually firm language. This is not a preference or an overlay to be negotiated — it is a hard stop.
How much difference does it make?
The spread between the government and conventional ceilings on the same programme, for the same borrower, in the same parish:
| Product | Non-targeted area | Targeted area |
|---|---|---|
| FHA, VA, RD | 115% of AMI | 140% of AMI |
| Fannie HFA Preferred / Freddie HFA Advantage | 80% of AMI | 80% of AMI |
So a government loan reaches roughly 1.4 times as far as conventional outside a targeted area, and 1.75 times inside one. And notice the second row does not move: targeted-area status raises the government ceiling and leaves the conventional one where it is.
We are not publishing parish AMI figures on this site, because the per-parish tables LHC links were not reachable when we checked on 2026-10-05. The percentages are verified and the dollar figures are not, so we publish the rules and send you to the operator for your parish. The income rules in full.
Why this catches people
Because the instinct runs the other way. Conventional financing is usually the route for the stronger borrower, and in several states the conventional version of a housing agency programme carries the higher income limit precisely because it is not bond-restricted.
Louisiana does the opposite on HomeStart Assist, and the reason is structural: Fannie's HFA Preferred and Freddie's HFA Advantage carry their own affordability targeting, and LHC applies the stricter of the two regimes rather than the looser.
The practical lesson is narrower and more useful than the explanation: an assumption about how a housing programme works does not travel across a state line. Same product names, same agencies, opposite answer.
What to do if you are over 80% AMI
Three routes, and none of them is "give up."
- Use a government loan. FHA, VA or RD on HomeStart Assist reaches 115% of AMI, or 140% in a targeted area, with the same 4% assistance and the same 60-month forgiveness.
- Use HomeStart Advantage instead. One income limit of $125,000 across every product, conventional included, and no first-time buyer requirement. The wider door.
- Check whether the property is in a targeted area — it raises the government ceiling to 140% and waives the first-time requirement. Targeted areas and the other waivers.
Mike's read: the conventional-versus-government decision should be made on mortgage insurance and on your credit profile, not on the programme. Where the 80% ceiling is binding, the question is simply which of the other two routes fits — and HomeStart Advantage usually does.
The product rules worth knowing alongside this
- Eligible first mortgages on Assist: FHA, VA, RD, Fannie Mae HFA Preferred and Freddie Mac HFA Advantage.
- FHA 203(h) is ineligible. FHA Limited 203(k) is allowed where the originating lender is approved by Lakeview to deliver them.
- Co-signers and non-occupant co-borrowers are permitted with FHA financing only on HomeStart Assist.
- Underwriting requires DU Approve/Eligible or LPA Accept/Eligible. Manual underwriting is FHA-only, at 660 minimum FICO and 45% maximum DTI. Nontraditional credit is not permitted.
Frequently asked questions
What is the income limit for conventional HomeStart Assist in Louisiana?
80% of the applicable area median income. The LHC Lenders' Guide states that Fannie Mae HFA Preferred and Freddie Mac HFA Advantage loans are limited to borrowers whose qualifying income does not exceed 80% AMI, and that a conventional HomeStart Assist loan may not be originated above that.Why is the conventional income limit lower than FHA in Louisiana?
Because Fannie Mae HFA Preferred and Freddie Mac HFA Advantage carry their own affordability targeting, and LHC applies the stricter regime. Government loans under HomeStart Assist reach 115% of AMI in non-targeted areas and 140% in targeted areas.What if my income is above 80% AMI in Louisiana?
Use a government loan on HomeStart Assist, which reaches 115% of AMI or 140% in a targeted area, or use HomeStart Advantage, which applies a single $125,000 income limit across every loan product and has no first-time homebuyer requirement.Does targeted area status raise the conventional limit?
No. Targeted area status raises the government loan ceiling from 115% to 140% of area median income and waives the first-time homebuyer requirement, but the conventional limit remains 80% of AMI.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.