Everything LHC checks, and which programme asks what
Program and regulatory figures verified October 5, 2026. Details change; confirm your scenario with us.
Most of LHC's rules are consistent across the four programmes. What varies is income, first-time status, and on one programme an entire extra layer of conditions.
The rules that apply everywhere
| Test | Requirement |
|---|---|
| Minimum credit score | 640; 660 for manufactured homes |
| Credit scores required | 2 for MRB programmes, all 3 for CDBG |
| Loan term | 30-year fixed-rate first mortgage |
| Occupancy | Owner-occupied primary residence |
| Underwriting | DU Approve/Eligible or LPA Accept/Eligible |
| Manual underwriting | FHA only, 660 FICO and 45% DTI — not permitted on Plus |
| Assumptions | Not permitted |
| Ineligible product | FHA 203(h) |
| Administrator | eHousing Plus |
The credit and ratio rules in detail.
Which income test applies
| Programme | Income test |
|---|---|
| HomeStart Advantage | $125,000 household income, flat |
| HomeStart Ready | $99,000 qualifying borrower income |
| HomeStart Assist, government | 115% AMI, 140% in targeted areas |
| HomeStart Assist, conventional | 80% AMI — hard cap, "may not be originated" above |
| HomeStart Plus | 80% HUD AMI |
Why there are no parish dollar figures on this site · The conventional cap.
Have you owned before?
Only HomeStart Assist and HomeStart Plus ask. The definition: the borrower and spouse may not have owned a principal residence in the previous three years.
On Assist the requirement is waived for eligible veterans and in targeted areas, with limited single-parent and displaced-homemaker exceptions. Plus allows the two limited exceptions only. The waivers.
The property
| Programme | Eligible properties |
|---|---|
| Assist | One-unit, townhomes, condominiums, modular, qualifying manufactured |
| Advantage | One-unit, townhomes, condominiums, qualifying manufactured |
| Plus | One-unit, townhomes, condominiums, qualifying manufactured — no Special Flood Hazard Area |
| Ready | One- or two-unit, townhomes, eligible condominiums — no manufactured or mobile |
Advantage publishes the fullest ineligible list: duplexes, single-wide mobile homes, vacation or second homes, recreational properties, timeshares, community land trusts, working farms or ranches, unimproved land, leaseholds, condotels and geodesic domes. Manufactured housing rules.
The price ceilings
- HomeStart Assist: $554,850 non-targeted, $678,150 targeted (Exhibit N1, eff. May 4, 2026).
- Advantage and Plus: the applicable FHA loan limit.
- Ready: the applicable conforming loan limit.
Why Louisiana's differ from the next state's.
★ HomeStart Plus adds an entire extra layer
If you are going for the $55,000, these apply on top of everything above:
- Front-end ratio at least 28%, no more than 33%. Back-end 48%.
- No Special Flood Hazard Area properties — Zones A, AE, V.
- LHC environmental review, up to two weeks, before closing.
- Minimum contribution: greater of 1% or $1,500 from your own funds.
- Maximum investment: greater of 10% or $10,000.
- Post-closing liquid assets capped at six months of housing payment.
- All three credit scores. No manual underwriting, no nontraditional credit.
- Flood and homeowners insurance for the life of the second mortgage.
Homebuyer education
Required on all three assistance programmes through a HUD-approved counselling agency or approved online provider. On HomeStart Ready it is required for first-time buyers only and repeat buyers are exempt.
★ LHC's two current sources disagree on whether one or all occupying borrowers must complete it for HomeStart Advantage. The conflict, and what to do.
Frequently asked questions
What are the requirements for Louisiana down payment assistance?
Every LHC programme requires a minimum 640 credit score, 660 for manufactured homes, a 30-year fixed first mortgage, an owner-occupied primary residence in Louisiana, a DU Approve/Eligible or LPA Accept/Eligible finding, and homebuyer education on the assistance programmes. Income limits, first-time buyer status and price ceilings vary by programme.Does LHC allow two-unit properties?
Only on HomeStart Ready, which permits one- or two-unit primary residences, townhomes and eligible condominiums. HomeStart Assist, Advantage and Plus are limited to one-unit primary residences, townhomes, condominiums and qualifying manufactured homes.Can I rent out a home bought with LHC assistance?
No. Every LHC programme requires the property to be the borrower's owner-occupied primary residence, and forgiveness of the second mortgage depends on maintaining that occupancy. On HomeStart Plus forgiveness accrues monthly only during continued owner occupancy.What extra rules apply to HomeStart Plus?
A front-end ratio between 28% and 33%, a 48% back-end maximum, exclusion of Special Flood Hazard Area properties, an LHC environmental review taking up to two weeks, a minimum borrower contribution, a maximum borrower investment, a six-month post-closing liquid asset cap, all three credit scores, and no manual underwriting or nontraditional credit.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.