Louisiana Home Loans 2026 — Complete Guide
Louisiana offers up to 9% in LHC down payment assistance, plus why its generous homestead exemption only covers parish taxes, not city taxes.
The number people miss: Louisiana's generous $75,000 homestead exemption only reduces parish taxes — it does not apply to city or municipal taxes. If you buy inside city limits, budget for the full municipal tax on top of the homestead-reduced parish tax, not a fully exempted combined bill.
Louisiana Down Payment Assistance — LHC Programs
The Louisiana Housing Corporation (LHC) offers several forgivable down payment assistance tiers through its Mortgage Revenue Bond programs, paired with a 30-year fixed first mortgage.
LHC Down Payment Programs
LHC Preferred Conventional stands out: Unlike most LHC programs, Preferred Conventional is not limited to first-time buyers — any qualifying buyer with income under roughly $99,000 and a 640+ credit score can apply, making it the option for move-up buyers who still need down payment help.
Buying in a hurricane-recovery parish? LHC's Resilience Soft Second and Pathways to Homeownership programs offer up to 20% of the purchase price in 10-year forgivable assistance — reaching as much as $60,000 in some cases — for buyers in parishes affected by recent hurricanes, including Livingston, East Baton Rouge, St. Tammany, and Ascension. This is substantially larger than LHC's standard programs, so check eligibility by parish before defaulting to the standard options.
Eligibility & Income Limits
Most LHC programs require a minimum 1% cash contribution from the buyer (or $1,500, whichever is less), a homebuyer education course, and household income within 80-120% of area median income depending on the program.
Confirm your exact parish limit and current program terms at LHC.la.gov before applying.
Current Rates
| Product | Rate | Source |
|---|---|---|
| 30-yr Conventional | 6.55% | Freddie Mac PMMS, week of July 16, 2026 |
| 15-yr Fixed | 5.93% | Freddie Mac PMMS, week of July 16, 2026 |
| LHC Mortgage Revenue Bond first mortgage | Below market | Confirm current rate with an LHC-approved lender |
2026 Loan Limits — Flat Statewide
Louisiana has no high-cost parishes in 2026 — the same limit applies from New Orleans and Baton Rouge to Lafayette, Shreveport, and rural parishes statewide.
| Loan Type | Limit (Statewide, All 64 Parishes) |
|---|---|
| FHA | $541,287 |
| Conventional (Conforming) | $832,750 |
| VA | No county limit for buyers with full entitlement |
Confirm current limits at HUD.gov, though Louisiana has held flat statewide limits for several years running.
Property Tax in Louisiana
What Buyers Should Budget For
Louisiana's constitutional homestead exemption (Article VII, Section 20) shields the first $75,000 of fair market value from parish property tax in every one of the state's 64 parishes, and applies automatically once granted — no annual re-filing required. This exemption is a major reason Louisiana has one of the lowest median property tax bills in the country, but it specifically excludes city and municipal taxes, so buyers inside incorporated city limits should not expect the exemption to cover their full bill. The Special Assessment Level freezes your assessed value once you turn 65 (or qualify as disabled) with income under roughly $100,000, though your bill can still rise if voters approve new millage. Veterans with a 50% or greater VA disability rating receive an additional exemption on top of the homestead, with 100%-rated veterans exempt from ad valorem tax entirely.
Pick Your Loan Type
Are you a teacher, nurse, firefighter, police officer, EMT, or veteran? Louisiana may run additional hero-specific loan programs on top of the general LHC options covered here. Browse the Hero Home Loan Programs hub and select Louisiana for profession-specific options.
Frequently Asked Questions
Bottom Line: Louisiana offers a strong combination of affordable home prices and one of the country's most generous homestead exemptions, and LHC's tiered down payment programs — especially the hurricane-recovery options in eligible parishes — can substantially reduce upfront costs. Just remember the homestead exemption stops at the city line, and factor insurance costs into your budget as carefully as the mortgage itself.
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