FHA Loan Programs in Louisiana
The housing market is just waiting for first time homebuyers to take the leap and buy their first house! With housing prices at their lowest in recent memory, it's hard to resist beginning the search. If you're thinking seriously about owning your first home, you've probably gone over your finances with a fine tooth comb, making sure you can afford the monthly payments, the closing costs, and the down payment. You might even be already talking to banks in the hopes of securing a home loan before you decide on a house. Those are great steps to take, but one option you may have overlooked is a Louisiana FHA loan.
Why Choose an FHA Loan?
Louisiana FHA loans are great for first time homebuyers who are worried about their credit, don't have a huge amount of money for a down payment or closing costs, or who just want to get a great deal on a home loan. Since they're administered by the Federal Housing Administration, Louisiana FHA loans have highly competitive rates and are designed with first time buyers in mind. The FHA makes it easier to qualify for a home loan by providing a guaranty to the bank you're working with to make the approval process easier.
Even if you've had a bankruptcy, the Louisiana FHA loan program may be able to qualify you for a loan if you've had excellent credit since. And since you can buy a house with only 3.5% down (instead of the traditional 20%) and can roll your closing costs either partially or fully into your loan, the FHA program makes a lot of sense to buyers who may not have the means to accumulate large quantities of cash.
Louisiana FHA Loan Limits
Just as with any other home loan, be sure to check with your potential lender before signing on the dotted line. Keep in mind that the Louisiana FHA loan program does have a lending limit in place which adjusts each year based on the median cost of housing in the country.
This means that the most you can borrow on an FHA loan in most counties in Louisiana is $271,050 for a single family residence. However, due to the high cost of living in some Louisiana counties, the amount is slightly higher. For instance, in East Baton Rouge, the current maximum loan value is $280,000, and in New Orleans, its $287,500. If you're considering a multi-family unit, check with your lender regarding the current loan maximum values.