The four HomeStart programmes

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, three of which pay assistance, and each one gated differently. The money is rarely the deciding factor, eligibility is.

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HomeStart Assist (formerly MRB Assisted)

The bond programme, available statewide in all 64 parishes.

• 4% of the original principal first mortgage amount, as a zero-interest forgivable second.
• Forgiven entirely at 60 months, subject to occupancy and no repayment event.
• First-time homebuyer required — borrower and spouse may not have owned a principal residence in the previous three years. Waived in targeted areas, for eligible veterans, and under limited single-parent and displaced-homemaker exceptions.
• Income: 115% of AMI non-targeted, 140% targeted on FHA/VA/RD; 80% of AMI on conventional, a hard cap. Why.
• Purchase price: $554,850 non-targeted, $678,150 targeted.
• Maximum DTI 50%; 45% manufactured homes.
• Subject to federal recapture tax if sold within nine years. Detail.
• Eligible properties include modular homes and qualifying manufactured homes.
• Co-signers and non-occupant co-borrowers: FHA financing only.

HomeStart Advantage (formerly Keys for Service)

The widest gate in the state, and the one that changed most in the rename.

• 4% of the final first mortgage amount, zero-interest forgivable second, forgiven at 60 months.
• ★ No occupation requirement and no first-time buyer requirement — though you may not own another residential property at closing.
• Income: $125,000, flat, statewide.
• Maximum purchase price: the applicable FHA loan limit.
• Maximum DTI 50%; 45% manufactured homes.
• 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, geodesic domes.

What the rename actually changed.

HomeStart Plus (formerly Pathways)

CDBG disaster-recovery money, and the largest assistance we work with anywhere.

• Up to 20% of the purchase price, capped at $55,000, plus a $5,000 closing-cost grant.
• Zero interest, forgiven monthly at 1/120 over 10 years of continued owner occupancy.
• 47 of 64 parishes — the Hurricane Laura, Delta and Ida declarations. The list.
• Income: 80% of HUD AMI. First-time buyers.
• Front-end ratio 28%–33%; back-end DTI 48%, 45% manufactured.
• Minimum contribution: greater of 1% or $1,500. Maximum investment: greater of 10% or $10,000.
• Post-closing liquid assets capped at six months of housing payment.
• No Special Flood Hazard Area properties. LHC environmental review, up to two weeks.
• Manual underwriting and nontraditional credit not permitted. All three credit scores required.

The conditions in full.

HomeStart Ready (formerly Premier)

A first mortgage without assistance — the guide says "No assistance offered at this time."

• 30-year fixed, FHA, USDA-RD, VA, Fannie Mae HFA Preferred or Freddie Mac HFA Advantage.
• First-time and repeat homebuyers.
• Income: $99,000 in qualifying borrower income.
• Maximum DTI: the lesser of 50% or the maximum approved by DU/LPA.
• Maximum purchase price: the applicable conforming loan limit.
• ★ The only LHC programme allowing a two-unit property.
• ★ Manufactured and mobile homes are ineligible, as are three- and four-unit properties, vacation or second homes, recreational properties and timeshares.
• ★ Homebuyer education required for first-time buyers only — repeat buyers are exempt.

What applies across all four

And two parish authorities alongside LHC

Louisiana is unusual in having approved parish-level housing finance authorities as well as the state agency, which means buyers in two of its largest markets have a second set of options.

Capital Area Finance Authority, serving the Baton Rouge area · Jefferson Parish Finance Authority and its Comfort of Home programme.

Frequently asked questions

What down payment assistance programs does Louisiana offer?

The Louisiana Housing Corporation offers HomeStart Assist and HomeStart Advantage, each paying 4% of the first mortgage as a zero-interest second forgiven at 60 months; HomeStart Plus, paying up to 20% capped at $55,000 plus $5,000 in closing costs across 47 parishes; and HomeStart Ready, a first mortgage with no assistance.

Which LHC program allows a two-unit property?

HomeStart Ready only. It permits one- or two-unit primary residences, townhomes and eligible condominiums, and excludes three- and four-unit properties, manufactured and mobile homes, vacation or second homes, recreational properties and timeshares.

Are assumptions allowed on Louisiana LHC loans?

No. The LHC Lenders' Guide states that assumptions are not permitted on HomeStart Assist, HomeStart Advantage, HomeStart Plus or HomeStart Ready.

Who administers the Louisiana HomeStart programs?

eHousing Plus administers LHC's homeownership programmes, and each LHC programme page directs borrowers and lenders to the eHousing Plus web portal to reserve a loan. Master servicer references in the Lenders' Guide are to Lakeview.

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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.