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Guide to Louisiana Mortgages
Maybe you are buying your first home in Louisiana, or perhaps you're relocating to Louisiana from another state. Then again, you may be a long-time Louisiana resident who is looking to either refinance your current mortgage or take out a home equity loan for home improvements. Regardless of your situation, it's important that you educate yourself on Louisiana home loans before shopping for a home and/or mortgage. This article explains what you will need to know before seeking a home loan in Louisiana:
The median price of a home in Louisiana is $211,500. Recently, homes in Louisiana have been appreciating at rates well above the national average. As a result, income levels in many parts of Louisiana are too low to purchase a median-priced home with a conventional loan. Although average interest rates in Louisiana are below the national average, Louisiana has one of the lowest levels of home affordability in the nation.
In Louisiana, before a buyer submits an offer on a home, their real estate agent is required to present them with a completed Real Estate Transfer Disclosure Statement. This document, completed by the seller of the property, requires the seller to name all of the property that will be included in the purchase (refrigerator, stove, alarm system, etc.) and rate certain aspects of the conditions of both the included property and of the house itself. This document requires the seller to disclose any potential problems or hazards that may discourage the buyer from putting an offer in on the home.
Louisiana's Civil Code Provision of the Real Estate Act regulates the issuance of variable interest rates for the purchase of real estate. Therefore, borrowers who are issued large mortgage amounts are guaranteed a fixed rate mortgage. Louisiana law also prohibits the charging of interest more than one day prior to the recording of the mortgage even if the borrower received the loan prior to that time.
In July of 2002, Louisiana law enacted a set of anti-predatory lending laws in order to help protect Louisiana homebuyers from predatory lenders. Some of the provisions of this new set of laws include the prohibition of a lender charging points and fees in excess of 6% of the total principal financed amount, the prohibition of a mortgage company issuing a loan to a borrower in an amount that the borrower could not reasonably afford to repay, and the prohibition of the financing of single-premium credit insurance, among others.
If you're buying a home in the state of Louisiana, you qualify for both federal and state FHA, USDA, and VA loans. First-time home buyers qualify for Louisiana FHA loans with below-market interest rates, and, depending on their eligibility, may also qualify for a loan in order to cover down payment and/or closing costs. Teachers and other professionals who work in an educational capacity may qualify for Louisiana's Extra Credit Teacher Home Purchase Program, a down payment assistance loan with forgivable interest.
In addition to FHA loans, the state of Louisiana also offers comparable programs to persons with disabilities or persons who live with and care for persons with disabilities. The state also offers several unconventional loans designed to aid homebuyers with the costs of their monthly mortgage payment. For example, Louisiana's Interest Only PLUS loan provides qualified homebuyers with a 100% financing 35-year loan that only requires payments toward the accrued interest on the mortgage for the first five years of the loan -- borrowers do not have to pay toward the principal amount borrowed until after the first five years. The individual requirements of each of these loans vary depending on the county in which you are buying a house. Specific requirements can be obtained through the Louisiana Housing Finance Agency.
Last Updated: Friday, November 21, 2008
Louisiana Real Estate Market View
updated Friday, November 21, 2008
| Housing & Social Facts |
Louisiana |
United States |
| Total housing units |
1,940,399 |
n/a |
| Owner-occupied housing units |
67.8% |
66.9% |
| Renter-occupied housing units |
32.2% |
33.1% |
| Vacant housing units |
13.6% |
10.8% |
| Average Home Value |
$101,700 |
$167,500 |
| Average Mortgage Payment |
$946.00 |
$1,295.00 |
| Average Rental Payment |
$271 .00 |
$388.00 |
| Total Population |
4,389,747 |
n/a |
| Percentage Male |
48.2% |
49.0% |
| Percentage Female |
51.8% |
51.0% |
| Median Age |
35.4 |
36.4 |
| Under 5 years |
7.3% |
7.0% |
| 18 years and over |
74.0% |
74.6% |
| 65 years and over |
11.4% |
12.1% |
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1 Year Market Value Change for Louisiana |
| 1yr | 5yr | 10yr |
 |
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Popular Louisiana Cities and Towns
| Location |
Population |
Median Family Income (2005) |
| Alexandria |
46,342 |
$26,097 |
| Baton Rouge |
227,818 |
$30,368 |
| Bossier City |
56,461 |
$36,561 |
| Chalmette |
32,069 |
$36,699 |
| Harvey |
22,226 |
$30,010 |
| Houma |
32,393 |
$34,471 |
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| Bank of New Orleans |
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Our Mortgage Loan Center allows you to use ONLINE TOOLS to learn more about home loans and find the best loan options to suit your needs and goals. You can explore our site without any obligation or disclosure of personal information. If you choose, you can also apply for your mortgage online. In order to meet the objectives of Bank of New Orleans and the Community Reinvestment Act and to offer the opportunity of homeownership to all individuals subject to this policy, the Bank will make loans for the purpose of real estate purchases or refinance in the following parishes of the Metropolitan New Orleans area: Jefferson, Orleans, St.Tammany, St. Bernard, St. Charles, St. John the Baptist and Plaquemines. Loans outside the above areas will be considered on a case by case basis. At any point, feel free to call us at (504) 834-1190 if you have any questions. Representatives will be available to assist you Monday-Friday 9am-4pm. Bank of New Orleans Corporate Office
1600 Veterans Blvd.
Metairie, Louisiana 70005
504.834.1190 - Phone
888.834.1190 - Toll Free
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| Coastal Mortgage Corporation |
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Coastal Mortgage Corporation is a Louisiana company that provides informed, knowledgeable mortgage solutions. We are licensed in Louisiana and Mississippi and operate offices in Mandeville and on the Northshore. We understand that buying a home is a critical financial decision and we offer the tools and the expertise to allow you make the financing decisions that fit in with your overall financial strategy. We use cutting edge technology to render extremely fast approvals and loan closings. We are also committed to very open communication. You will always know what stage your loan is at and what needs to be done to close your loan. You will get your preference of daily or weekly loan status updates and can log onto your own client account 24 hours a day to check the status of your loan, ask questions, and view or upload required documentation. Or, if you prefer, we will meet with you at your place or ours to go over options and make the process fast, stress-free, and pleasant. In all cases, we will be available to online, over the phone or in person whenever you need us. If your property is in Mandeville, Madisonville, Abita Springs, Covington, or a surrounding area, take advantage of the tools listed here to sell your home faster and for more money. If you are looking for a Real Estate Agent to guide you through the process, please let us know. We work with the best agents in the area and would be happy to put you in touch with a true professional. Coastal Mortgage Corporation
2220 Monroe Street
Mandeville, LA 70448
985.727.7704 - Office
800.349.5155 - Toll Free
504.754.1436 - Fax Coastal Mortgage Corporation is a real estate broker licensed by the LA Dept of Real Estate License
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| Old Crest Mortgage |
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Deciding to buy a home or refinance a mortgage is a big step. You can trust us to find the loan program that is best for you. Buying a new home is a source of anxiety, frustration and a huge sense of accomplishment. Trust our professionals to find the mortgage loan that best fits your needs, too. "Less paperwork and more personal attention" means you enter a frustration-free zone from application to decision. Obtaining the right mortgage loan means receiving the keys to your new house; we can help you get there. Refinancing your current mortgage has never been easier. We make it easy and worry-free to reduce your interest rate and monthly payment. We can even help you pay down your balance more quickly for comparable monthly payment. Let our professionals guide you to the very best refinanced loan!
Tapping into your home equity is easier than ever before. You pay down your balance, and property values rise! Tap into that wealth and reward yourself. We will help with the best program to fit your goals. Our mortgage professionals give you the personal attention you deserve and treat you with the respect due a valued customer. We understand you are making a commitment in buying a new home, refinancing and mortgage or cashing out your home equity. So we make a commitment to you. We will help you qualify, apply and be approved for the right mortgage loan for you. Old Crest Mortgage
12812 Coursey Boulevard, Suite 2-B
Baton Rouge, LA 70816
225.753.5622 - Phone
866.753.5622 - Toll Free Old Crest Mortgage is a real estate broker licensed by the LA Dept of Real Estate License
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