Four programmes, and only two of them ask whether you have owned before

Program and regulatory figures verified October 5, 2026. Details change; confirm your scenario with us.

By Mike Certo, Cornerstone First Mortgage · NMLS #260555 · Updated October 5, 2026

The first question most Louisiana buyers ask turns out to be the wrong one, because half the programmes do not ask it and the other half have four ways around it.

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Which programmes ask

So if you have owned before, the simplest answer is HomeStart Advantage, which pays the same 4% as Assist and does not ask. The one caveat in its own words: "the borrower may not own another residential property at closing."

What "first-time" means here

LHC's definition, from the Lenders' Guide: "The borrower and spouse may not have owned a principal residence during the previous three years."

Two details worth noting. It includes the spouse, whether or not they are on the loan. And it is about a principal residence — so an inherited share in a property you never lived in, or a rental you have never occupied, is a different question and one to put to your lender rather than assume either way.

★ The four ways around it on HomeStart Assist

From the guide's First-Time Buyer Exceptions row: the requirement "is waived for eligible veterans and properties located in designated targeted areas; limited single-parent and displaced-homemaker exceptions also apply."

1. Eligible veteran status. Works anywhere in the state.
2. A targeted-area property. The guide says the requirement is "fully waived," though the residence must still be the borrower's principal residence.
3. Single-parent exception, limited.
4. Displaced-homemaker exception, limited.

HomeStart Plus allows the displaced-homemaker and single-parent exceptions but is otherwise first-time only — its parish list and its 80% AMI ceiling do the targeting instead.

What else a targeted area changes

Targeting is the most valuable status on HomeStart Assist, because it moves three things at once. The guide lists the benefits explicitly:

1. "First-time homebuyer requirements are fully waived, but the residence financed under the Tax-Exempt Program must be the principal residence of the homebuyer/borrower."
2. "Purchase Price / Mortgage Limits for residences in Targeted Areas are generally increased by 20%" — in published terms, from $554,850 to $678,150.
3. "Family Income Limits are generally increased up to 140% of applicable median family income."

★ One thing targeting does not change: the 80% AMI cap on conventional loans. That ceiling holds in targeted and non-targeted areas alike. Why.

Targeted areas are HUD-designated census tracts, and LHC publishes the tract list through eHousing Plus. Your lender checks it at reservation; the benefits apply "only to MRB Assisted Program loans," which is to say HomeStart Assist.

What you will have to show

LHC's guide points lenders to its verification requirements for first-time buyer status. In practice, expect the usual documentary trail — and expect it to cover your spouse as well, given the definition includes them.

If you are relying on a waiver, that is the thing to establish early. Veteran status needs evidence; a targeted-area property needs the tract confirmed before you are relying on it for eligibility rather than discovering at reservation that the address is a block outside.

If you have owned before, in order of what pays most

1. Buying in a targeted area? HomeStart Assist opens up at 4%, with the higher price and income limits attached.
2. Eligible veteran? Same, anywhere in Louisiana.
3. Neither? HomeStart Advantage — the same 4%, the same 60-month forgiveness, no first-time question, up to $125,000 income.
4. No assistance needed? HomeStart Ready takes repeat buyers and exempts them from homebuyer education entirely.

Note what is not on that list: HomeStart Plus and its $55,000. That programme is first-time only, with the two limited exceptions. The Plus rules.

Frequently asked questions

Do I have to be a first-time buyer for Louisiana down payment assistance?

Only on two of the four LHC programmes. HomeStart Assist and HomeStart Plus require first-time status; HomeStart Advantage and HomeStart Ready do not. On Advantage the only related condition is that the borrower may not own another residential property at closing.

What counts as a first-time homebuyer in Louisiana?

The borrower and spouse may not have owned a principal residence during the previous three years. The definition includes the spouse whether or not they are on the loan, and concerns a principal residence rather than any property interest.

Are veterans exempt from the Louisiana first-time buyer rule?

Yes, on HomeStart Assist. The LHC Lenders' Guide states that the first-time buyer requirement is waived for eligible veterans and for properties located in designated targeted areas, with limited single-parent and displaced-homemaker exceptions also applying.

What does a targeted area change in Louisiana?

On HomeStart Assist it fully waives the first-time homebuyer requirement, raises purchase price and mortgage limits by generally 20%, from $554,850 to $678,150, and raises family income limits up to 140% of area median income. It does not change the 80% AMI cap on conventional loans.

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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.