640 everywhere, 660 for manufactured — and four different ratio rules
Program and regulatory figures verified October 5, 2026. Details change; confirm your scenario with us.
The credit score is the same everywhere, which is unusually simple. The ratio rules are not, and one of them works in a direction nobody expects.
The credit score rule
One number, applied across all four programmes. From the Lenders' Guide:
"All loans reserved MUST have a minimum credit score of 640. Loans with a score less than 640 are not eligible. Borrower must have at least 2 credit scores for MRB Programs and all 3 credit scores for CDBG Programs. Manufactured Housing will required a credit score of at least 660."
| Situation | Minimum score | Scores required |
|---|---|---|
| Standard, MRB programmes | 640 | 2 |
| Standard, CDBG (HomeStart Plus) | 640 | All 3 |
| Manufactured housing | 660 | As above |
| Manual underwriting (FHA only) | 660 | As above |
★ The three-score requirement on CDBG is a real constraint rather than a formality. A borrower with a thin file who carries only two scores is eligible for HomeStart Assist and not for HomeStart Plus — which is the programme paying up to $55,000. Worth checking before you build a plan around it.
Four different ratio rules
| Programme | Maximum DTI | Manufactured homes |
|---|---|---|
| HomeStart Assist | 50% | 45% |
| HomeStart Advantage | 50% | 45% |
| HomeStart Plus | 48% back-end, 28–33% front-end | 45% |
| HomeStart Ready | Lesser of 50% or the DU/LPA maximum | Not eligible |
Ready's rule is the subtle one: "the lesser of 50% or the maximum approved by DU/LPA." So the automated underwriting system can be stricter than the programme, and where it is, it wins.
★ The front-end window on HomeStart Plus
This is the rule that surprises people, because it has a floor:
"PITI must be at least 28% but may not exceed 33%."
Principal, interest, taxes and insurance has to land inside that band. A borrower whose housing payment comes in at 24% of income is outside the programme — not because they cannot afford the house, but because the programme's view is that they did not need $55,000 of subsidy to buy it.
It is coherent policy for disaster-recovery money and it is genuinely counterintuitive to borrowers, who reasonably assume a lower payment is always better. The other Plus conditions.
Underwriting rules
- Every programme requires a DU Approve/Eligible or LPA Accept/Eligible.
- Manual underwriting is permitted with FHA loans only, at a 660 minimum FICO and 45% maximum DTI — and on HomeStart Plus it is not permitted at all.
- Nontraditional credit is not permitted on HomeStart Assist, nor on HomeStart Plus.
- Co-signers and non-occupant co-borrowers are permitted on HomeStart Assist with FHA financing only.
Taken together, these push a weaker file toward FHA on Assist or Advantage, and away from Plus entirely. That is worth knowing early, because Plus is where the money is.
If your score is below 640
No LHC programme reaches you today — the guide is explicit that "loans with a score less than 640 are not eligible," and that is a programme floor rather than a lender overlay.
Two things worth checking rather than giving up on. The parish authorities publish their own minimums, and CAFA lists programmes at a 620 minimum FICO. CAFA's programmes. And if you are close, a short, targeted push on the score is usually a better use of three months than an application that will not clear. Send us the scenario.
Frequently asked questions
What credit score do I need for Louisiana down payment assistance?
640 on every LHC programme. Loans with a score below 640 are not eligible, and manufactured housing requires at least 660. 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.What is the maximum DTI for LHC programs?
50% on HomeStart Assist and HomeStart Advantage, reduced to 45% for manufactured homes. HomeStart Plus allows a maximum back-end DTI of 48% with a front-end ratio that must fall between 28% and 33%. HomeStart Ready allows the lesser of 50% or the maximum approved by DU or LPA.Why does HomeStart Plus have a minimum front-end ratio?
Because it is disaster-recovery subsidy aimed at households who need it. The LHC Lenders' Guide requires PITI to be at least 28% of income and no more than 33%, so a borrower whose housing payment is a small share of income falls outside the programme.Does LHC allow manual underwriting?
Only with FHA loans, at a 660 minimum FICO and 45% maximum DTI, and not at all on HomeStart Plus. Every programme otherwise requires a DU Approve/Eligible or LPA Accept/Eligible finding, and nontraditional credit is not permitted on Assist or 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.