The Louisiana programme that quietly stopped asking what you do for a living
Program and regulatory figures verified October 5, 2026. Details change; confirm your scenario with us.
This was a programme for people in service occupations. It is now a programme for everyone, and the change is five weeks old.
What actually changed
The name and the gate. LHC's Lenders' Guide, published 09/10/26, sets out HomeStart Advantage's eligibility in two lines that would have been impossible under the old programme:
Eligible Borrowers: "Available to qualified homebuyers; no specific service-related occupation is required"
First-Time Homebuyer: "Not required; however, the borrower may not own another residential property at closing"
The consumer page is blunter still: "All occupations qualify."
"Keys for Service" was named for what it asked. HomeStart Advantage asks neither question. The rename, dated.
Who this now reaches
Four groups that were outside the old programme and are inside this one:
- Anyone not in a service occupation — which was most of the state.
- Repeat buyers. No first-time requirement, so long as you do not own another residential property at closing.
- Buyers above the bond-programme income limits. $125,000 flat is more generous than HomeStart Assist's conventional ceiling of 80% of AMI.
- Buyers in any parish. Statewide, with no targeted-area question to answer.
Mike's view: for a Louisiana household earning between roughly 80% of AMI and $125,000 who has owned before, this is the single most useful programme in the state right now, and the one least likely to come up in conversation — because the name is five weeks old and the old name actively discouraged them from asking.
The terms
| Term | HomeStart Advantage |
|---|---|
| Assistance | 4% of the final first mortgage amount |
| Structure | Zero-interest forgivable second mortgage |
| Forgiveness | Entire balance at 60 months, if occupancy maintained and no repayment event |
| Income cap | $125,000 annual household income |
| First-time buyer | Not required |
| Occupation | None required |
| Area | Statewide, all 64 parishes |
| Maximum purchase price | The applicable FHA loan limit |
| Minimum credit score | 640; 660 for manufactured homes |
| Maximum DTI | 50%; 45% for manufactured homes |
| First mortgages | FHA, VA, RD, Fannie Mae HFA Preferred, Freddie Mac HFA Advantage |
| Loan term | 30-year fixed |
Note the base: 4% of the final first mortgage amount, where HomeStart Assist uses the original principal amount. A small distinction that your lender will apply correctly and that is worth knowing exists.
Advantage or Assist?
They pay the same percentage and forgive on the same schedule, so the question is which will take your file.
| HomeStart Assist | HomeStart Advantage | |
|---|---|---|
| First-time buyer | Required* | Not required |
| Income, government loans | 115% / 140% AMI | $125,000 flat |
| Income, conventional | 80% AMI, hard cap | |
| Price limit | $554,850 / $678,150 | FHA loan limit |
| Recapture tax | Yes — bond funded | — |
| Targeted-area benefits | Yes | Not applicable |
* Waived in targeted areas and for eligible veterans.
Broadly: if you are a first-time buyer inside the bond limits, Assist is built for you and brings targeted-area benefits with it. If you have owned before, if you are over the conventional 80% AMI ceiling, or if you simply want the shorter list of questions, Advantage is the wider door. Why the conventional ceiling catches people.
What still applies
- Homebuyer education. Required — though LHC's two current sources disagree on how many borrowers must complete it. The conflict, and what to do about it.
- Owner-occupied primary residence only.
- Assumptions are not permitted.
- Ineligible properties: 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.
- Underwriting needs a DU Approve/Eligible or LPA Accept/Eligible; manual underwriting is FHA-only at 660 FICO and 45% DTI.
- FHA 203(h) is ineligible; FHA Limited 203(k) is allowed where the lender is approved by Lakeview to deliver them.
Frequently asked questions
Does HomeStart Advantage require a service occupation?
No. The LHC Lenders' Guide states under Eligible Borrowers that the programme is available to qualified homebuyers and no specific service-related occupation is required. The consumer page states that all occupations qualify. The programme was formerly Keys for Service, which was occupation-based, and was renamed on 09/09/2026.Do I have to be a first-time buyer for HomeStart Advantage?
No. The LHC Lenders' Guide states that first-time homebuyer status is not required, although the borrower may not own another residential property at closing. The property must be an owner-occupied primary residence.What is the income limit for HomeStart Advantage?
$125,000 annual household income, applied flat with no household size or parish variation. The maximum purchase price may not exceed the applicable FHA loan limit.How much does HomeStart Advantage pay?
4% of the final first mortgage amount, as a zero-interest forgivable second mortgage. The entire balance is forgiven at the end of 60 months if the borrower has maintained the required occupancy and no repayment event has occurred.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.