Let me guess. Someone told you that you need 20% down to buy a home. Maybe it was a coworker, an uncle at the crawfish boil, or that little voice in your head. Here's my favorite news to share: for most buyers, it's a myth!
I love this question, because the real answer opens doors. And there's fresh news: on October 22, the Louisiana Housing Corporation (LHC) gave its homebuyer programs brand-new names. Let me walk you through it, one bite at a time.
The quick answer: No, you usually don't need 20% down. Some loans ask for 3% (conventional) or 3.5% (FHA), and VA and USDA loans can be $0 down if you qualify. Louisiana's new HomeStart programs can add 4% in forgivable help, and HomeStart Plus offers first-time buyers in East Baton Rouge, Ascension, and Livingston up to $55,000, plus up to $5,000 for closing costs.
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Myth or fact? How low? New HomeStart names HomeStart Plus Baton Rouge math How to start
Myth or Fact: Do You Need 20% Down?
Do I need 20% down to buy a house? No. Twenty percent is a nice goal, not a rule. Here's where the myth comes from: on a conventional loan, putting less than 20% down usually means you'll pay for private mortgage insurance, or PMI. That's an extra monthly charge that protects the lender. It's a cost to plan for, but it's not a stop sign.
The National Association of REALTORS® found that the typical first-time buyer put 10% down (2025 Profile of Home Buyers and Sellers). Plenty put down less.
How Low Can a Down Payment Go?
What is the lowest down payment I can make? It depends on the loan. Here's the menu:
- Conventional loans: as little as 3% down with some programs, like Fannie Mae's HomeReady, which is for buyers with lower or nontraditional incomes.
- FHA loans: as little as 3.5% down, according to HUD.
- VA loans: no down payment for eligible veterans, as long as the price isn't higher than the appraised value (U.S. Department of Veterans Affairs). No PMI, either!
- USDA loans: no down payment for eligible buyers in eligible rural areas (USDA Rural Development).
Every loan has its own rules for credit, income, and the home itself. I'm a REALTOR®, not a lender, so I'll connect you with lenders who can tell you what you qualify for. Wondering if a home is in a USDA area? Send me the address, and I'll check.
Louisiana's Down Payment Help Has New Names
What is the Louisiana HomeStart program? On October 22, 2026, the Louisiana Housing Corporation announced new names for its homebuyer programs, with a new motto: Louisiana Home Starts Here. LHC says the programs aren't being replaced, and most benefits stay the same. Here's who's who:
- HomeStart Assist (was MRB Assisted): 4% of your first mortgage as a 0% second loan, forgiven after 5 years if you follow the rules. It's for first-time buyers (usually no home of your own in the last 3 years), and income limits apply.
- HomeStart Advantage (was Keys for Service): 4% help, also forgiven after 5 years. Every job qualifies now, income can be up to $125,000, and you don't have to be a first-time buyer (you just can't own another home at closing).
- HomeStart Plus (was Pathways to Homeownership): the big one! More on that next.
- HomeStart Ready (was Premier): a 30-year fixed-rate loan for first-time and repeat buyers with income up to $99,000. Right now it doesn't come with separate down payment help.
For all four, plan on a credit score of at least 640 and an LHC-approved lender. Most also ask for a homebuyer class. Good news: LHC lists online classes for about $70 to $75.
Big Help for Our Parishes: HomeStart Plus
Who qualifies for HomeStart Plus? HomeStart Plus is for first-time buyers in parishes hit by Hurricanes Laura, Delta, or Ida. Here's the lagniappe: East Baton Rouge, Ascension, Livingston, and West Baton Rouge are all on the Hurricane Ida list.
- Up to 20% of the price, up to $55,000, as a 0% second loan that's forgiven a little each month over 10 years
- Plus up to $5,000 toward closing costs
- Income at or below 80% of the area median (it depends on your household size)
- A credit score of 640 or higher, and a homebuyer class
- The home can't be in a high-risk flood zone, and you'll keep homeowners and flood insurance
- You'll put in a little of your own money, too: at least 1% of the price or $1,500, whichever is more
That flood zone rule matters a lot around here. Before you fall in love with a house, I'll pull the FEMA flood map for it.
What It Looks Like on a Baton Rouge Home
How much is a down payment on a Baton Rouge home? Let's use the September 2026 median sale price for the Greater Baton Rouge area: $269,000 (Greater Baton Rouge Association of REALTORS®).
- 20% down: $53,800
- 10% down: $26,900
- 3.5% down (FHA): $9,415
And 4% HomeStart help on a $250,000 loan would be $10,000 toward your down payment and closing costs. That's a whole lot closer than $53,800! You'll also have closing costs, so I broke those down in Surprise! The Home-Buying Bills Nobody Warns You About.
Your Starter Recipe
How do I get started with down payment help in Louisiana? Like a good roux, it's easy when you go step by step:
- Check your credit. LHC programs need at least 640.
- Take a homebuyer class. LHC lists online options for about $70 to $75.
- Talk to an LHC-approved lender. Ask which HomeStart program fits you.
- Get pre-approved, so you know your budget.
- Call me, and let's go see homes! I'll help you find homes that fit your program's rules, like price limits and flood zones.
Want to see the whole journey? Here are the 10 steps I walk you through.
Questions Buyers Ask Me
Do I have to pay back down payment help in Louisiana?
It depends on the program. HomeStart Assist and HomeStart Advantage are forgiven after 5 years if you follow the rules and keep living in the home. HomeStart Plus is forgiven a little each month over 10 years. If you sell or refinance early, you may owe some of it back, and HomeStart Assist can come with a federal "recapture tax" if you sell within 9 years. Your lender will explain your exact terms.
Am I a first-time homebuyer if I owned a home before?
Maybe! For HomeStart Assist and HomeStart Plus, you usually count as a first-time buyer if you haven't owned your main home in the last 3 years. There are a few exceptions, like for some veterans.
Can I use down payment help with an FHA, VA, or USDA loan?
Yes. The HomeStart programs work with FHA, VA, and USDA Rural Development loans, plus certain conventional loans made for housing agency programs.
What credit score do I need?
For LHC's HomeStart programs, at least 640. For FHA's 3.5% down payment, HUD's minimum is 580.
Let's Make Your Plan Together
Whether we find the right home this weekend, next month, or next year, my goal is simply to help you make the best decision for you and your family. You are never a transaction to me.
Reach out either way. I'm happy to help.
Call or Text Rima: 225-892-2131 See my buyer plan
More from my blog and website:
- New to all this? Start with my first-time buyer page.
- Picking a neighborhood? Read 7 neighborhood clues first-time buyers miss.
- Comparing parishes? Browse my Baton Rouge area guides, like Prairieville.
Where My Info Comes From
I like to give credit where it's due:
- Louisiana Housing Corporation: the new HomeStart names (Oct. 22, 2026), the HomeStart program pages, and the Louisiana Home Starts Here program guidelines (Sept. 10, 2026)
- eHousingPlus: the HomeStart Plus parish list
- HUD: FHA down payments as low as 3.5%, and FHA credit score rules
- U.S. Department of Veterans Affairs: VA loans and down payments
- USDA Rural Development: USDA guaranteed loans
- Fannie Mae: HomeReady and down payment basics
- National Association of REALTORS®: 2025 Profile of Home Buyers and Sellers
- Greater Baton Rouge Association of REALTORS® MLS: September 2026 median sale price
Programs and rules can change, and funds can run out. Your lender will confirm what's available when you apply.
