Did you know that you can buy a home with no down payment? If you’ve always wanted to purchase a home of your own in New Orleans but don’t have much saved, many local and federal programs can help make it possible.
How Can You Buy a Home With No Down Payment?
If you want to purchase a home with little or no money down, learn more about these programs to see how they can help you.
USDA Single Family Housing Direct Home Loans
The U.S. Department of Agriculture backs USDA loans and helps buyers in rural or semi-rural areas. There are two main types: the USDA Direct Loan, for low-income buyers, and the USDA Guaranteed Loan, offered through approved lenders for moderate-income buyers.
You’ll need to meet income and credit guidelines, and the home must be in an eligible location. If you qualify, you can buy a home with no down payment and benefit from low fixed interest rates.
VA Home Loan Program
VA home loans are for veterans, active-duty service members, and some surviving spouses. If you meet service requirements and have decent credit, you can buy a home without a down payment. There’s also no mortgage insurance, and the Department of Veterans Affairs backs the loan. This means you’ll have more affordable monthly payments.
Louisiana Housing Corporation Programs
The Louisiana Housing Corporation offers several down payment assistance programs for low- to moderate-income buyers, including the Market Rate GNMA and Delta 100 programs. Depending on the program, you may need to be a first-time homebuyer or work in certain professions such as education or public service. Many options include forgivable or “soft second” loans that cover part of your down payment. Credit and income limits apply.
Direct Homebuyer Assistance Program
The Direct Homebuyer Assistance Program helps first-time homebuyers purchase a home for sale in New Orleans. If your income is under 80% of the area median and the home price is within limits, you may qualify.
You can receive up to $55,000 for your down payment and $5,000 for closing costs. The money is a forgivable loan if you stay in the home for 10 years. It’s one of the best options for local homebuyers.
What Are Other Ways To Eliminate Down Payment Costs?
There are additional ways to fully cover or reduce your down payment costs.
Down Payment Assistance Grants
Grants are money you can use for your down payment that you don’t have to pay back. Down payment assistance in Louisiana is often available through the Louisiana Housing Corporation, local parish programs, and community-based nonprofits.
Forgivable or Deferred Down Payment Loans
You might qualify for a loan that helps with your down payment without monthly payments or interest. Forgivable loans go away after a few years if you stay in the home. Deferred loans are only repaid when you sell or refinance.
Gift Funds From Family Members
If you have family willing to help, they can gift you money for your down payment and closing costs. You’ll need a gift letter for your lender to prove that it’s a true gift and not a loan.
You Can Become a Homeowner With No Down Payment
You don’t have to give up your dreams of buying a home in New Orleans with no down payment. For more than 15 years, Home Helpers Properties has helped families across Louisiana buy a home through tailored financing plans, credit assistance, and down payment options that fit real-life budgets.
If you’re ready to take the next step toward owning your own home, apply now to see what Home Helpers can do for you.
