Direct Homebuyer Soft Second Mortgage Assistance Program (LA): Amount, Requirements & How to Apply

Direct Homebuyer Soft Second Mortgage Assistance Program

Quick answer

Direct Homebuyer Soft Second Mortgage Assistance Program is a Louisiana down payment assistance program from City of New Orleans Office of Community Development. It provides Up to $55,000 down payment assistance or up to $5,000 closing costs as a deferred-payment loan. It is aimed at first-time buyers. Eligibility, income limits and funding are set by the agency, so confirm current terms on its official page.

Eligibility notes

Soft second mortgage; repayment/forgiveness terms not stated on page. $1,000,000 CDBG available as of January 2026; max sales price $324,000; page updated 7/31/2026.

Where does Direct Homebuyer Soft Second Mortgage Assistance Program apply?

This city-level program is available to buyers in New Orleans. Cities on our site where it applies:

Down payment assistance in New Orleans

Detail	Program terms
Assistance	Up to $55,000 down payment assistance or up to $5,000 closing costs
Type	Deferred-payment loan
Minimum credit	Not published on the program page
First-time buyer	Required
Income limits	At or below 80% AMI

How does Direct Homebuyer Soft Second Mortgage Assistance Program work with an FHA loan?

Louisiana's 2026 FHA one-unit limits start at $541,287, which supports a price of about $560,000 with 3.5% down.

Where do I confirm current terms?

On the official page: https://nola.gov/next/community-development/programs/direct-homebuyer-assistance-program/. Programs can pause when funds run out, so confirm availability with a participating lender.

← All Louisiana down payment assistance programs

Frequently asked questions

Up to $55,000 down payment assistance or up to $5,000 closing costs, according to City of New Orleans Office of Community Development.

It's a deferred loan — no monthly payments, repaid when you sell, refinance or pay off the first mortgage.

At or below 80% AMI

Sources

Data last updated October 25, 2026.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.