Louisiana Home Loans & Mortgage Rates

Louisiana offers some of the most affordable homeownership in the South, combined with uniquely generous DPA programs that can put buyers into homes with virtually zero out-of-pocket costs. The statewide median sits around $245,000. New Orleans commands a premium as a global tourism and culture destination, while Baton Rouge benefits from state government, LSU, and petrochemical industries.

Orleans Parish (New Orleans) has a median around $320,000 with enormous neighborhood variation from $150,000 to $1M+. Jefferson Parish (Metairie, Kenner) approximately $270,000. East Baton Rouge Parish about $250,000. St. Tammany Parish (Covington, Mandeville) approximately $330,000, the Northshore’s premier market. Lafayette Parish about $240,000. Caddo Parish (Shreveport) approximately $180,000. Calcasieu Parish (Lake Charles) about $210,000. Rural Louisiana commonly under $150,000.

Louisiana’s FHA limits are uniform at $541,287 across all 64 parishes. At Louisiana price points, FHA coverage is extremely generous. The Louisiana Housing Corporation (LHC) runs multiple programs including the Resilience Soft Second (up to $60,000 forgivable after 10 years) and MRB programs (4-9% DPA). Louisiana has moderate property taxes (0.53-0.56%) and unique parish-based closing cost structures.

2026 Loan Limit Takeaways

100% uniform at $541,287 across all 64 parishes. More than double the statewide median. Even New Orleans ($320,000) and St. Tammany ($330,000) are well within FHA limits.

Down Payment Assistance Notes

Louisiana’s Soft Second programs are among the most generous in America. $60,000 in forgivable assistance in a state where the median home is $245,000 means many buyers can purchase with essentially zero out-of-pocket costs. The 10-year forgiveness means this becomes a true grant if you stay. The MRB programs at 4-9% serve buyers who don’t qualify for Soft Second. The Delta 100 program (no minimum credit score, 2% rate, no MI) is unique for credit-challenged buyers.

Closing Costs in Louisiana

Louisiana has moderate closing costs with unique parish-based structures.

No State Transfer Tax: Louisiana does not impose a state-level real estate transfer tax. Minimal recording fees apply.

Attorney State: Louisiana traditionally requires attorney involvement at closing (notary public). Legal/notary fees typically $500-$1,500.

Title Insurance: Typically $800-$2,000.

Flood Insurance: Many Louisiana properties require flood insurance due to flood zone designations. This is a significant ongoing cost — $1,000-$5,000+/year depending on zone and coverage. Critical factor in budgeting for Louisiana homeownership, especially in coastal and low-lying parishes.

Estimated Total Buyer Closing Costs: On a $245,000 purchase, expect approximately $4,400-$8,600 (1.8-3.5%). Louisiana’s no-transfer-tax keeps costs low, but attorney requirement and potential flood insurance add expenses.

Property Taxes in Louisiana

Louisiana property taxes are among the lowest in America.

Statewide Average: Approximately 0.53-0.56% effective rate. Well below national average.

Homestead Exemption: Louisiana provides one of the most generous homestead exemptions in America — the first $75,000 of assessed value (at 10% assessment ratio = approximately $750,000 of market value for most homeowners) is exempt from parish property taxes. This effectively eliminates parish property tax for most Louisiana homeowners.

Parish Effective Rates: Orleans Parish approximately 0.80% (higher due to city services). Jefferson Parish about 0.50%. East Baton Rouge approximately 0.55%. St. Tammany about 0.45%. Lafayette approximately 0.40%. Caddo (Shreveport) about 0.60%.

On a $245,000 home statewide, expect approximately $1,300-$1,370/year. In New Orleans on a $320,000 home (with homestead exemption), approximately $1,500-$2,000. In Shreveport on a $180,000 home, about $1,080. The $75,000 homestead exemption means many Louisiana homeowners pay minimal property taxes.

USDA Loan Eligibility in Louisiana

Louisiana has extensive USDA eligibility across the state.

Most of rural Louisiana qualifies outside New Orleans, Baton Rouge, Shreveport, and Lafayette metro cores. Eligible areas include northern Louisiana (Ouachita, Morehouse, Richland, Franklin, Tensas parishes), central Louisiana (Avoyelles, Rapides portions, Grant, LaSalle), southwestern Louisiana outside Lake Charles (Beauregard, Allen, Evangeline), and the Acadiana region (St. Landry, Acadia portions, Vermilion).

Parts of the Bayou region (Terrebonne, Lafourche, Assumption parishes), portions of the Florida Parishes (Washington, St. Helena, Tangipahoa portions), and the Delta parishes also qualify. Louisiana’s extensive USDA coverage combined with very affordable prices and generous DPA makes rural homeownership extremely accessible.