How to Get Help with Your Down Payment in New Orleans

Saving for a down payment is often one of the most difficult things for new homebuyers. It’s an obstacle that keeps many renting for far longer than necessary. Even if you have great credit and a good debt-to-income ratio, you will likely need some sort of down payment.

However, you don’t have to spend forever saving for a down payment. There are several state and municipal agencies that offer assistance for homebuyers with the down payment and the closing costs. You will have to do some work to find the programs and become involved, but it can help save you plenty of cash.

Programs for Down Payment Assistance

You will find several down payment assistance programs, which are often called grants. These grants don’t need to be repaid. In addition, there are loan programs with no interest or very low interest, which you don’t have to repay until you sell the home.

The HFA or State Housing Finance Agencies offer some opportunities for down payment assistance. You can find a full list and information about their programs on their website at ncsha.org.

There are several programs offered by the counties and cities in Louisiana, as well. Programs are also offered through non-profit agencies, employers and even labor unions.

Teachers and first responders can use the Good Neighbor Next Door program from HUD, as well. Find out about other possible state and local government programs here.

Some of the programs you will find throughout New Orleans and the state of Louisiana include:

•          Homeownership Vouchers
•          Louisiana Housing Corporation
•          Habitat for Humanity
•          U.S. Department of Agriculture Rural Housing
•          And many others!

Mortgage Programs Offering No Down Payment Options

Veteran loans are a great choice when it comes to loan programs offering no down payment. If you’re a member of the military, a veteran or a surviving spouse, you can use the VA loan program to ensure you get a home without a down payment. The best part, you don’t have to buy private mortgage insurance with this program.

USDA Rural Development Home Loan Program

If you’re buying in the right area and you can get a direct loan from the USDA, you may be able to get it with no down payment. This program is for low-income borrowers and for homes in rural areas.

Along with these programs, the FHA offers down payments lower than most other lenders. You may pay between 3.5% and 10% down, depending on the loan amount, your income and your credit.

You may also be able to use the HomeReady program from Fannie Mae, which will offer a lower down payment. If you qualify, you can get a down payment of 3% of the purchase price and you can cancel PMI when you have 20% equity in your home.

Freddie Mac offers a similar program called the Home Possible program. This program also offers 3% down options.

Make sure you look into the possibilities as even 3% is $3,000 per $100,000. There are ways to get help with your down payment in New Orleans if you’re willing to do a bit of research.