Louisiana · State guide
How to buy a house in Louisiana
Affordable prices, some of the lowest property taxes in the country, and a state agency that offers up to $60,000 in forgivable help — balanced against the nation’s toughest home-insurance market. Here is the playbook for buying in the Pelican State.
Last updated June 2026
Why Louisiana is different
Buying a house in Louisiana, the short version
The federal process is the same everywhere — read the complete guide to buying a house for the eight universal steps — but Louisiana is genuinely unusual, with its own programs, tax rules, and a one-of-a-kind closing process.
The picture: Louisiana is affordable (a statewide median around $240,000; New Orleans is the priciest of the big three cities, Baton Rouge sits in the middle, and Shreveport is roughly half of New Orleans), and it has some of the lowest property taxes in the country — thanks to a $75,000 homestead exemption that wipes out the parish bill for most homeowners. The Louisiana Housing Corporation (LHC) offers some of the most generous down payment help in the South, with forgivable “soft second” loans up to $60,000.
Two things make Louisiana distinctive. It’s the only civil-law state, so closings run through a notary and an “Act of Sale.” And — the big one — Louisiana has the most expensive and most stressed home-insurance market in the nation, so budget very carefully. Use the 50-state hub to compare other states.
The market
What homes cost in Louisiana
Among the more affordable states, with a wide gap between New Orleans and the rest.
The statewide median sale price was around $240,000 in early 2026, keeping Louisiana well below the national median. Prices vary a lot by metro:
Median prices by metro
New Orleans (Orleans Parish) is the priciest of the big three · Baton Rouge ~$275,000 (down about 3.7% year over year) · Lafayette ~$250,000 · the North Shore (St. Tammany) ~$296,000 · Shreveport is the most affordable, roughly half of New Orleans. Even Louisiana’s top markets stay within reach of the conforming loan limit.
Down payment & rate help
Louisiana Housing Corporation programs
You don’t apply directly — you work through an LHC-approved lender. A homebuyer course and (for most programs) a 640 credit score are required.
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MRB Home & Assisted
The Mortgage Revenue Bond programs pair a below-market 30-year FHA, VA, or USDA loan with help: MRB Home adds a grant of 5%–9% of the loan (0%, no repayment), and MRB Assisted adds a 4% second forgiven after three years. First-time buyers at or below 80% AMI.
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Soft Second & Resilience Soft Second
The most generous option: up to 20% of the price (capped at $55,000) plus a $5,000 closing grant — up to $60,000 total — as a 0% “soft second” forgiven after 10 years. The Resilience version targets parishes hit by recent hurricanes and floods.
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Market Rate, Preferred & the tax credit
The Market Rate GNMA and Preferred Conventional programs (first-time and repeat buyers) offer up to 4% assistance with higher income limits (~$99,000). LHC’s Mortgage Credit Certificate adds a federal tax credit up to $2,000 a year.
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Local & federal help
Cities add their own: New Orleans (up to $35,000 forgivable + $5,000 closing), Shreveport HAPPI, Lake Charles, and Kenner. Plus USDA (0% down — much of Ascension and Livingston Parishes qualify) and VA (0% down).
The LHC rules in brief
Most programs require a 640 credit score, completion of a homebuyer education course (a free 4-hour class or a 6–8 hour online option), and household income under parish-specific limits (MRB caps at 80% AMI; Soft Second and Preferred allow up to ~$99,000). “First-time” means no ownership in the last three years — but several programs are open to repeat buyers or in targeted areas. The Soft Second programs are the most generous, but availability is limited to certain parishes, so an LHC-approved lender can confirm what applies where you’re buying.
★ Free expert help
Buying in Louisiana? Get matched with a local expert.
From LHC’s soft-second help to making sense of hurricane and flood insurance on a specific home, a local pro can walk you through it — and answer the questions this page can’t. Free, with no obligation.
Property taxes
Property taxes in Louisiana: among the lowest anywhere
Here’s a real bright spot: Louisiana has the third-lowest median property tax bill in the country — an effective rate around 0.55% and a typical bill near $1,000–$1,200. Two things drive that. Homes are assessed at just 10% of market value, and the Homestead Exemption removes the first $75,000 of market value (the first $7,500 of assessed value) from parish taxes. For most homes under about $300,000, that wipes out the parish bill entirely — many owners pay only a few hundred dollars a year. One catch: the homestead exemption doesn’t cover municipal (city) taxes or some special districts, so city dwellers still owe those.
Re-file the homestead exemption — it doesn’t transfer
When you buy, the seller’s homestead exemption does not carry over. You must apply with your parish assessor (by January 1) to claim the $75,000 exemption on your new home. Homeowners 65 or older with income under ~$100,000 can also freeze their assessed value (the Special Assessment Level), and disabled veterans get extra exemptions (a 100%-disabled veteran can be fully exempt). In the New Orleans area, watch for levee and improvement-district assessments that the homestead exemption doesn’t cover.
Closing & costs
Closing on a home in Louisiana
Louisiana is the only civil-law state, so buying works a little differently. A home is transferred by an Act of Sale — a notarial act executed before a notary public, who in most real estate deals is a licensed attorney. That notary (or a title company) conducts the closing. Title insurance is available and lenders generally require the lender’s policy, though it’s historically been less universal here because attorneys do detailed title work. The good news on costs: Louisiana has no state transfer tax (the constitution bars it) — the only exception is the City of New Orleans documentary transaction tax, a flat fee paid by the seller in Orleans Parish — so elsewhere you’ll just pay recording and notarial fees. Conforming loans top out at $832,750 and the FHA floor is $541,287 in every parish; buyers typically pay 2%–5% in closing costs (prepaid insurance is a big line item here).
The disclosure — and Louisiana’s “redhibition” rule
Louisiana requires the seller to give you a Property Disclosure Document (prescribed by the Louisiana Real Estate Commission under R.S. 9:3196) listing known defects — the updated 2026 form took effect January 1. If you receive it after making your offer, you have 72 hours to withdraw. It’s not a warranty and doesn’t replace your own due diligence, so always get a full home inspection. Louisiana’s redhibition law also gives buyers a remedy if a hidden defect makes the home unusable or sharply reduces its value.
Insurance & risks
Insuring a Louisiana home
This is the cost that defines homebuying in Louisiana — and the reason to budget very carefully. The state has the most expensive and most stressed home-insurance market in the country, averaging roughly $5,000–$6,000 a year (among the highest nationally) and far more on the coast. Louisiana is the most hurricane-prone state, and after Hurricanes Laura, Delta, and Ida, about a dozen insurers became insolvent and many others stopped writing policies — pushing tens of thousands of homeowners onto Louisiana Citizens, the state’s insurer of last resort.
Hurricane deductibles, wind exclusions, and a separate flood policy
Expect a named-storm or hurricane deductible — a percentage of your home’s value (typically 2%–5%), not a flat dollar amount. Near the coast, a policy may exclude windstorm entirely, so you add it separately or through Louisiana Citizens’ Coastal Plan. And flood is never covered by a home policy — Louisiana has the nation’s highest flood risk, so a separate NFIP (or private) flood policy is essential even outside mapped flood zones. Buy it early: there’s a 30-day waiting period. Wind-mitigation upgrades — a fortified roof, hurricane straps, impact-resistant glass — can earn meaningful discounts.
Wherever you buy
The steps that work the same in Louisiana
Louisiana sets the local rules, but these parts of buying are the same everywhere.
Quick answers
Buying a house in Louisiana: common questions
How much money do you need to buy a house in Louisiana?
With a conventional loan you need 3% down, FHA 3.5%, and VA or USDA can be 0%. On a typical ~$240,000 home that’s roughly $7,200–$8,400 down plus closing costs. LHC’s Soft Second can add up to $60,000 toward your down payment and closing. See how much you really need →
Does Louisiana have down payment assistance?
Yes — and it’s generous. LHC’s Soft Second offers up to $60,000 (forgivable after 10 years), MRB programs add grants of 5%–9%, and there’s up to 4% assistance on conventional and government loans, plus local programs in New Orleans and Shreveport. See assistance programs →
Are property taxes really that low in Louisiana?
Yes — the third-lowest median bill in the country. The $75,000 homestead exemption wipes out the parish tax on most homes, so many owners pay only a few hundred dollars a year. Remember to re-file the exemption when you buy.
Why is home insurance so expensive in Louisiana?
Louisiana is the most hurricane-prone state, and an insurance crisis after Hurricanes Laura and Ida left insurers insolvent and premiums among the highest in the nation. Expect a percentage-based hurricane deductible on your policy.
Do I need flood insurance in Louisiana?
Almost certainly. Home insurance never covers flood damage, and Louisiana has the highest flood risk in the country — flooding happens even outside mapped zones. Buy an NFIP or private flood policy early (there’s a 30-day wait).
Do I need an attorney to buy a house in Louisiana?
Louisiana is a civil-law state, so a notary — usually a licensed attorney — executes the Act of Sale that transfers the home. A title company can also handle the closing. Either way, the notarial process is built into how Louisiana sales work.
Does Louisiana have a transfer tax?
No. Louisiana’s constitution prohibits a state real estate transfer tax. The only exception is the City of New Orleans documentary transaction tax (a flat fee paid by the seller). Elsewhere you pay only recording and notarial fees.
Do home sellers have to disclose problems in Louisiana?
Yes. Louisiana requires a Property Disclosure Document listing known defects. If you get it after making your offer, you have 72 hours to withdraw. Always get your own inspection too. How inspections fit the process →
What credit score do you need in Louisiana?
Most LHC programs require a 640. For loans broadly, FHA can go to 580 and USDA/VA generally want 620. A higher score mainly earns a lower rate. Check the score by loan type →
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