Market Rate GNMA Program

In order to assist residents to afford the upfront costs of buying a home, the Louisiana Housing Corporation offers eligible applicants the Market Rate GNMA Program.

Available Assistance
Along with a 30-year, fixed-rate FHA, VA or USDA Rural Development loan, the program offers homebuyers assistance funds up to 4 percent of the total purchase price, which can be put toward covering the down payment, closing costs, and/or prepaid items. There are no origination or discount fees associated with this program.

Eligibility Requirements
In order to receive benefits under the Market Rate GNMA Program, all applicants must meet certain requirements. Unlike most programs, this one is not exclusive to first-time homebuyers. However, all applicants must fall under the program's income limit: 115 percent of the area median income. They must also have a minimum credit score of 640 to be considered eligible.

Any home being purchased with Market Rate GNMA Program funds must be single-family housing (one-unit principal residence) and be located in Louisiana.

Choosing a Lender
The program is partnered with many lenders for a borrower to choose from and has instructions for applicants when deciding which one is the best for their situation.

• Select the lender
• Confirm pre-qualification
• Make an appointment to be pre-qualified for a mortgage loan utilizing the Market Rate GNMA Program.
• Meet with a lender to complete the loan application process, give them permission to pull a credit report, and to get help determining which loan product is most suitable (FHA, VA, or Rural Development).

The purpose of this program is to make funds available to eligible applicants who are interested in purchasing a home but need financial help to pay the upfront costs, which include the down payment, as well as the closing costs and prepaid items required to obtain homeownership. These expenses can add up to a substantial amount, and the inability to pay it might keep people stuck in a renters trap.

*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but States and Local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price and income limits.