Down Payment Assistance Program
Are you wondering:
What if I have little savings, can I purchase a home?
Are there any down payment assistance programs available in Louisiana?
What is a Down payment Assistance (DPA) Loan?
DPA funds are designed for those who need assistance with down payment costs. Often times a borrower will qualify in all other aspects of a loan but will not have enough cash on hand for a down payment. Our DPA helps homebuyers attain grants or low-interest loans that reduce the amount they need to save for a down payment.
By helping responsible homebuyers to overcome the challenge of the minimum investment required for a mortgage, LHA has partnered with a national DPA program to help create healthy Louisiana communities. The entire state of Louisiana is eligible.
This DPA program offers down payment assistance to creditworthy, low- to moderate income individuals. To date, our DPA partner has assisted over 30,000 borrowers with their down payment, of which 55% are minority and 75% are first-time homebuyers.
*Minimum credit score of 600.
*DPA funds are available for FHA & conventional loans.
*3.5% down payment assistance and 5% down payment assistance options.
DPA Soft Second. With this product, the borrower receives a 30-year term, 0% interest rate (0% APR), no monthly payment second mortgage. The loan is forgivable under conditions dependent on the down payment assistance amount:
*3.5%: Forgivable after 36 consecutive, on-time payments on the FHA first mortgage. This forgiveness period resets if the borrower makes a late payment, but the borrower has the full 30-year term to meet the forgiveness conditions.
*5%: Forgivable after the initial 120 consecutive, on-time payments on the FHA first mortgage. This forgiveness period is terminated if the borrower has a payment that is 60+ days late, but the loan will remain with a 30-year term, 0% interest rate (0% APR), and no monthly payment.
DPA Repayable Second. With this product there are no income limitations. The borrower get access to a 10-year repayable second at a 0% interest rate (0% APR). The borrower will need to meet the minimum credit score of 600. This product offers both 3.5% down payment assistance and 5% down payment assistance options.
How To Get Started
The first step in the home buying process is to schedule a free phone consultation with one of our mortgage specialist partners with Geneva Financial, LLC. Contact us today at (504) 356-9100 or fill out the form below and one of our mortgage partners will contact you.
Fill out the form and we’ll chat with you soon.