Up to 20% of the purchase price, in 47 of Louisiana's 64 parishes

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

This is the largest down payment assistance programme we work with anywhere, and the parish list is far wider than the words 'disaster recovery' suggest.

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What it pays

HomeStart Plus, formerly Pathways, is funded with Community Development Block Grant disaster recovery money, which is why it can be so much larger than an ordinary state programme.

At $275,000, the 20% would be $55,000 — so the cap binds at exactly that price, and above it the assistance is the flat $55,000. Against a typical New Orleans value of $261,002, most buyers are close to the point where the percentage and the cap meet.

LHC is careful to note that "actual assistance is based on the homebuyer's eligibility, purchase price, and applicable program requirements," so treat 20% as a ceiling rather than an entitlement. The conditions attached.

Which parishes qualify

LHC publishes the list by hurricane. A parish qualifies if it appears under any of the three declarations — Hurricane Laura (DR-4559), Hurricane Delta (DR-4570) or Hurricane Ida (DR-4611).

That is 47 parishes of 64 — Laura covers 21, Delta 12 and Ida 25, with substantial overlap.

The two names people do not expect to see

Orleans and East Baton Rouge are both on the Hurricane Ida list.

That matters because "disaster recovery assistance" reads as a small-town or coastal programme, and the two largest urban housing markets in Louisiana are inside it. A first-time buyer in New Orleans or Baton Rouge, under 80% of area median income, is looking at up to $55,000 toward their purchase — not the 4% the statewide programmes offer.

Buying in New Orleans · Buying in Baton Rouge.

Who qualifies

• First-time homebuyers purchasing in a designated parish. The borrower and spouse may not have owned a principal residence in the previous three years, subject to limited displaced homemaker and single-parent exceptions.
• Household income may not exceed 80% of HUD area median income, adjusted for household size and property location.
• Minimum credit score 640; 660 for manufactured homes. All three credit scores are required on CDBG programmes.
• Maximum back-end DTI 48%; 45% for manufactured homes. And a minimum front-end ratio — see below.
• At least one occupying borrower completes approved homebuyer education.
• Maximum purchase price may not exceed the applicable FHA loan limit.
• Manual underwriting and nontraditional credit are not permitted.

Three conditions that are not on the brochure

This programme carries more conditions than any other on this site, and each one has ended somebody's file.

★ A minimum front-end ratio. "PITI must be at least 28% but may not exceed 33%." You can be ineligible for spending too little of your income on housing, which is the reverse of every other ratio rule in lending.

★ A cap on what you keep. After closing you may retain liquid assets of no more than six months of the proposed housing payment; excess must reduce the closing cost assistance. Retirement accounts are excluded. LHC marks this as added 09/10/26.

★ Flood zones. Properties in a Special Flood Hazard Area are not eligible, and LHC's page names Zones A, AE and V. In the parishes this programme serves, that excludes a great deal of the housing stock. What that rules out.

There is also an LHC environmental review on every property, completed by LHC staff, which "may take up to two (2) weeks" — and no loan may close until clearance is issued. All of it, in order.

What you have to put in

Unusually, this programme sets both a floor and a ceiling on your own contribution.

So you must put something in, and you may not put too much in. Together with the liquid-asset cap, the programme is quite deliberately aimed at buyers with modest savings rather than at buyers choosing to finance.

Frequently asked questions

How much does HomeStart Plus pay in Louisiana?

Up to 20% of the purchase price through a forgivable second mortgage, capped at $55,000, plus a closing cost grant of up to $5,000. The second carries zero interest and is forgiven monthly at 1/120 over 10 years of continued owner occupancy.

Which Louisiana parishes qualify for HomeStart Plus?

47 of Louisiana's 64 parishes, being the union of the Hurricane Laura (DR-4559), Hurricane Delta (DR-4570) and Hurricane Ida (DR-4611) declarations. The Ida list includes Orleans and East Baton Rouge parishes.

Can I get HomeStart Plus in New Orleans?

Yes. Orleans Parish appears on the Hurricane Ida eligible parish list, so New Orleans buyers who are first-time homebuyers with household income at or under 80% of HUD area median income can access the programme, subject to its flood zone, ratio and environmental review conditions.

What is the income limit for HomeStart Plus?

Household income may not exceed 80% of HUD area median income, adjusted for household size and property location. The programme also requires a minimum credit score of 640, 660 for manufactured homes, and all three credit scores because it is a CDBG programme.

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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.