Prepare for your home-buying journey and secure your dream property
with these streamlined, step-by-step first-time home buyer guides.
Louisiana offers an affordable housing market for aspiring homeowners. With an average home value of $216,254, well below the national average of $370,320, the state can be an attractive option for first-time homebuyers. The Louisiana Housing Corporation (LHC) also provides homeownership programs that help eligible low- to moderate-income homebuyers, including affordable mortgage options, down payment assistance, and homebuyer education.
This first-time homebuyer guide covers essential first-time homebuyer tips and advice to help you navigate every step of the process, from preparing your finances to choosing the right loan for your needs.
First, what is a first-time homebuyer? A first-time homebuyer isn’t always someone who has never owned a home. Under the federal definition, you may qualify as a first-time homebuyer if you haven’t owned a principal residence during the past three years. You may also qualify if you previously owned a home only with a former spouse. Other exceptions apply to people who owned a residence that wasn’t permanently affixed to a foundation or a property that didn’t meet state, local, or model building codes that could not be brought into compliance for less than the cost of constructing a permanent structure.
Buying your first home in Louisiana may qualify you for state homebuyer assistance programs offered through the LHC. Eligible borrowers may qualify for affordable financing, down payment assistance, and homebuyer education through participating lenders, subject to program requirements.
The Mortgage Revenue Bond Home Program is one of the primary homebuyer assistance programs in Louisiana. It serves households with incomes at or below 80% of the area median income and offers below-market interest rates with down payment and closing assistance for eligible borrowers.
Several down payment assistance programs are available through the LHC. Depending on the program, assistance may be provided as a grant or a second mortgage to help cover upfront buying costs. The Delta 100 program is available to eligible first-time homebuyers purchasing homes in participating Delta parishes who lack traditional credit. It offers up to 100% financing and up to 3% in closing costs and prepaid-item assistance for qualified borrowers.
Some LHC programs are available only to first-time homebuyers, while others are open to repeat buyers who meet the program requirements. Eligibility and available assistance vary by program, so borrowers are advised to compare their options before applying.
Before choosing a home loan, review the income limits, purchase price limits, and occupancy requirements for each program. Many LHC programs also require completion of a homebuyer education course before closing. A participating lender can help determine which options you may qualify.
Recommended: Louisiana First-Time Home-Buying Assistance Programs
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Purchasing your first home involves several steps, from setting a budget to closing on the property. If you’re wondering how to buy a house for the first time, understanding the process — and the first-time homebuyer advantages available through loan programs and financial assistance — can help you prepare your finances, compare mortgage options, and navigate each stage of the transaction. The 11 steps below outline how to buy a house for the first time.
Before you start house hunting, evaluate your financial situation to determine how much home you can afford. A home affordability calculator can help you estimate a comfortable price range based on your income, debts, and expected monthly housing costs. One of the top first-time homebuyer tips is to budget for more than your mortgage: Make sure to include property taxes, homeowners insurance, maintenance, and other ongoing expenses.
Lenders will review your credit score and debt-to-income (DTI) ratio when evaluating your mortgage application. Conventional loans typically allow a maximum DTI of 45%, while FHA loans generally allow up to 43%. USDA and VA loans usually use a 41% DTI guideline, although a higher ratio may be accepted with compensating factors or other qualifying financial strengths. Building your credit and reducing existing debt before applying may help you qualify for more loan options and favorable terms.
Staying in a home for several years can help build equity through mortgage payments and potential price appreciation. Compare the total cost of owning versus renting to determine whether buying aligns with your long-term financial plans.
Recommended: Average Monthly Expenses for One Person
You need a realistic budget that accounts for both upfront and ongoing homeownership costs. Upfront costs include the down payment, closing costs, and moving expenses, while ongoing costs include property taxes, homeowners association dues, utilities, and maintenance.
Down payment requirements vary by loan type. Conventional loans may allow as little as 3% down for qualified borrowers, while a 20% down payment can help avoid private mortgage insurance and may improve loan terms. VA and USDA loans may offer zero-down-payment options for eligible borrowers.
You can use a down payment calculator to estimate your monthly costs before you start house hunting and ensure your budget aligns with long-term affordability.
The next step on your first-time homebuyer checklist is researching each type of mortgage loan to determine which one fits your situation. These include:
It’s a good idea to shop around for mortgage lenders so you can compare interest rates and fees, which vary between financial institutions. Comparing multiple loan offers helps you identify more affordable options.
Understanding the difference between the interest rate and the annual percentage rate (APR) is also important. The interest rate reflects the cost of borrowing, while the APR includes the interest rate plus additional costs such as lender fees and discount points, providing a more complete view of total loan cost.
Comparing lender responsiveness, fees, and service quality during the mortgage preapproval process helps reduce unexpected costs and supports a smoother closing experience.
It’s important to understand the difference between prequalification vs. preapproval, as they represent different stages in the mortgage process. Prequalification provides an early estimate of your borrowing power based on unverified financial information, while preapproval involves a more detailed review of your financial standing and credit history. During the mortgage approval process, lenders review financial documents such as bank statements, pay stubs, and tax returns, and information about debts and assets to assess borrowing eligibility.
A mortgage preapproval letter is typically valid for up to 90 days, depending on the lender. Some lenders also lock the interest rate during the mortgage preapproval process, depending on market conditions and lender policies. Preapproval provides a stronger indication of financing readiness than prequalification because it reflects verified financial information. It helps define a realistic price range for home searches and demonstrates a higher level of readiness to sellers.
Connecting with a real estate agent early in the home-buying process helps guide home search decisions and navigate local market conditions. A real estate agent represents a buyer’s best interests and provides support through pricing, negotiations, and transaction steps. Agents often help identify homes that match a buyer’s budget and preferences and may provide access to listings as they become available. They also assist with preparing and reviewing purchase agreements and other required documents during a transaction.
Real estate agent compensation structures vary, and recent industry changes have shifted how commissions are negotiated and disclosed in transactions. Real estate agents may also refer buyers to local professionals such as mortgage lenders and home inspectors, depending on the needs of the transaction.
Viewing properties typically begins after mortgage preapproval, when you have a clearer price range for your search. Your home search varies based on budget, household needs, and location preferences, including factors such as neighborhoods, school districts, commute times, and the cost of living, which can vary significantly by region.
Location plays a long-term role in homeownership because it can’t be changed after purchase. Consider reviewing multiple properties to clarify preferred features and identify potential maintenance or repair needs before making an offer.
Federal fair housing laws protect first-time homebuyers from housing discrimination based on protected characteristics such as race, religion, national origin, sex, disability, and familial status. These protections apply throughout your home search and purchase process.
Recommended: Best Affordable Places in the U.S.
Once you find a home you want to purchase, the next step is submitting an offer. A real estate agent can help prepare the formal offer, which includes the proposed purchase price, contingencies, and closing timeline.
Contingencies are included in an offer to provide conditions that need to be met for the sale to move forward, such as financing approval or satisfactory inspection results. If the seller accepts your offer, both parties move into the contract phase, and an earnest money deposit is typically submitted to demonstrate commitment. Real estate agents often use comparable sales data to inform pricing decisions and guide offer strategy based on local market conditions.
After a seller accepts your offer, a home inspection generally takes place with a licensed professional inspector. A home inspection is a detailed evaluation of the property’s condition, including the roof and foundation as well as the electrical, plumbing, and heating systems. A standard home inspection usually costs $300-$500.
A home inspection is separate from a home appraisal and focuses on the physical condition of the property rather than its market value. The inspection report outlines any issues or potential repairs identified during the evaluation. Inspection findings may be used during negotiations with the seller, including requests for repairs or credits, depending on the terms of the agreement. Reviewing the inspection results helps clarify the property’s condition before closing.
Lenders require a home appraisal before issuing a mortgage. An appraisal determines the fair market value of the home, which lenders use to confirm the property supports the loan amount.
Your lender will select an independent professional through a standardized process to ensure objectivity. The buyer pays for the appraisal, which is usually $300-$600. The appraiser evaluates the property and compares it to recent sales of similar homes in the area to determine its value. A low appraisal may affect the final loan amount or financing structure.
Closing is the final stage of the home-buying process. During closing, you sign the mortgage documents, pay closing costs, and complete the transfer of ownership. The closing process also includes finalizing the legal transfer of the property title. Before closing, you receive a closing disclosure that outlines the final loan terms, projected monthly payments, and all closing costs. Federal rules require lenders to provide this document at least three business days before closing so you can review the details.
Lenders typically require proof of homeowners insurance before closing, and some properties may also require additional coverage depending on location and risk factors. It’s standard to complete a final walk-through before closing to confirm the property’s condition. Once the process is complete, ownership is transferred, and you receive the keys to your new home.
An online calculator can be a big help in comparing home equity loan rates and terms. And it’s not the only calculator you’ll find helpful during your home equity loan process:
Enter a few details about your home loan and we’ll provide you your maximum home equity loan amount.
Punch in your HELOC amount and we’ll estimate your monthly payment amount for your HELOC.
Use SoFI’s HELOC interest calculator to estimate how much monthly interest you’ll pay.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Closing on a home is a major milestone, but ongoing responsibilities continue after the purchase. Creating a move-in checklist helps organize key tasks, such as coordinating the move, setting up utilities, and submitting a change of address. Changing exterior door locks is another top priority.
Building an emergency fund helps cover unexpected expenses that can arise after moving in, such as repairs or financial disruptions. This savings buffer supports long-term financial stability as homeownership costs continue over time.
Navigating the real estate market in Louisiana becomes more manageable when you understand available state programs and follow a structured home-buying process. State homebuyer assistance programs may help reduce upfront costs such as the down payment and closing fees.
Preparing your credit and finances early can support your qualification for a mortgage, as will shopping around with multiple lenders. Careful budgeting and working with a real estate agent help guide the path toward homeownership in Louisiana.
If you’re planning to buy a house for the first time, you’ll need cash to cover the down payment and closing costs, which are usually 2%-5% of the mortgage amount. Conventional loans allow down payments as low as 3% for qualified buyers, while some government-backed loans may offer 0% down options. Also, budget for ongoing monthly expenses.
The credit score you need as a first-time homebuyer depends on the loan type. Conventional mortgages usually require a minimum credit score of 620, while FHA loans allow credit scores as low as 580 with a 3.5% down payment or 500-579 with 10% down. VA and USDA loans don’t have a set minimum score, but individual lenders may look for scores of at least 620.
Common mistakes among first-time homebuyers include skipping mortgage preapproval, overspending before closing, and underestimating ongoing repair costs. Waiving a home inspection or failing to shop for multiple mortgage quotes are other major pitfalls.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SOHL-Q226-040Take the first steps to homeownership today. Get prequalified for an FHA loan online.
