Louisiana's price limits, and why they are not the same as the next state's

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

Four programmes use three different price ceilings, and the one most often quoted is also the one most often borrowed from another state.

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HomeStart Assist

From LHC Exhibit N1, "HomeStart Assist Program Purchase Price Limits," effective May 4, 2026:

LHC adds: "The targeted-area limit applies only when the property is located in an eligible targeted area." How targeting is determined.

★ Why these are not the numbers you may have seen

Because mortgage revenue bond price limits are set per issuer and per vintage, not nationally. Indiana and Alabama both publish $566,355 and $692,211 for their equivalent bond programmes, effective June 24, 2026. Louisiana publishes $554,850 and $678,150, effective May 4, 2026.

The gap on the non-targeted limit is $11,505. Small in absolute terms, and entirely sufficient to decline a file that was written to the wrong state's number.

The lesson generalises: a figure from an adjacent state's bond programme is not a sanity check on Louisiana's. They come from the same federal formula at different moments, and they are published separately for a reason.

On the "20% increase" in targeted areas

The Lenders' Guide says purchase price and mortgage limits in targeted areas "are generally increased by 20%." The published pair is about 22% apart.

Both statements are fine — "generally" is doing the work, and the published exhibit is the operative document. But it is the reason this page gives you the two figures and does not hand you a multiplier to apply yourself. Use the published limits, not arithmetic on the base.

The other three programmes

Note that three of the four are expressed as a reference to an external limit rather than as a dollar figure. That is deliberate on LHC's part — it means the ceiling moves automatically when FHA or FHFA move theirs, with no programme notice required.

Does any of this bind a real Louisiana buyer?

Rarely. Against a non-targeted ceiling of $554,850:

Every Louisiana metro sits far below the cap. In practice the binding constraints in this state are income and, on HomeStart Plus, the flood zone and ratio rules — not price. The income tests · The Plus conditions.

Loan limits, which are a separate thing

The federal conforming limit binds the loan rather than the price. Every one of Louisiana's 64 parishes sits at the 2026 baseline of $832,750 for a one-unit property, with no parish designated high cost.

Frequently asked questions

What is the purchase price limit for Louisiana down payment assistance?

For HomeStart Assist, $554,850 in a non-targeted area and $678,150 in a targeted area, from LHC Exhibit N1 effective May 4, 2026. HomeStart Advantage and HomeStart Plus use the applicable FHA loan limit, and HomeStart Ready uses the applicable conforming loan limit.

Are Louisiana's bond program price limits the same as other states?

No. Louisiana publishes $554,850 and $678,150 effective May 4, 2026, while Indiana and Alabama publish $566,355 and $692,211 effective June 24, 2026. Mortgage revenue bond price limits are set per issuer and per vintage, so a figure from an adjacent state is not a valid check.

How much higher is the targeted area price limit in Louisiana?

The published pair is $554,850 non-targeted against $678,150 targeted, a difference of $123,300. The LHC Lenders' Guide describes targeted-area limits as generally increased by 20%, so use the published figures rather than applying a multiplier.

What is the conforming loan limit in Louisiana?

$832,750 for a one-unit property in 2026. All 64 Louisiana parishes sit at the national baseline with none designated high cost. That limit binds the loan amount separately from LHC's purchase price limits.

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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.