USDA Direct Loans (also known as USDA Section 502 Direct Loans) are a mortgage program that assists low- and very-low income individuals buy decent, safe, and clean housing in rural areas. This is done through payment assistance which increases a borrower’s ability to repay. That payment assistance can be best described a subsidy which lowers the mortgage payment for short periods. The amount of assistance largely depends on the adjusted family income. USDA Direct Home Loans in Louisiana don’t work in the same manner as USDA Guaranteed Loans in Louisiana. The USDA Guaranteed Loan Program is a more popular option and can be used for a wider range of applicant incomes.Louisiana USDA Direct Loans are 100% financing mortgages. Unlike Guaranteed USDA Loans, applicants must have low or very low income to qualify for Direct Loans.

Louisiana USDA Direct Loan Requirements

USDA Direct Loans are a mortgage program available for low-income individuals to buy homes in rural areas. USDA defines low- or very low income as anything between 50% and 80% of the Area Median (AMI). The statewide median income was recently reported as $49,469 in Louisiana, but this number may differ from one county to the next. For home buyers that meet those requirements, USDA Loans are a zero-down mortgage, meaning there’s no down payment. To be eligible, applicants must also meet the following requirements:

  • You don’t presently have decent, clean, sanitary and safe housing.
  • You can’t get another mortgage from a different source with terms and conditions reasonably expected to be met.
  • The subject property must be your primary residence.
  • You must be legally eligible for a mortgage.
  • You must meet citizenship requirements or non-citizen requirements.
  • You must be eligible for participation in federal programs.

In addition, the subject property must meet the following requirements.

  • It must be moderately-sized for the area.
  • The home cause can’t exceed the area’s applicable loan limit.
  • The home can’t be designed for the production of income.

How much can I borrow with a USDA Direct Mortgage?

Up to the maximum loan limit, the amount of money that an applicant’s eligible for depends on their ability to pay it back. When evaluating home loan applicants for Direct home loans, Rural Development considers income, assets, debt, and payment assistance. And remember, you can’t borrow more than the local USDA loan limit for the county where the home is located, no matter what your repayment ability may be.

What areas in LA are eligible for USDA Direct Loans?

The subject property must be in an approved rural area. You can search specific addresses in Louisiana for USDA eligibility here.

Are there other zero down mortgage options or low down payment mortgages in Louisiana?

Yes, other low down payment mortgage options, and no down payment mortgage options are available in Louisiana besides USDA Direct Loans. You can start by looking into USDA Guaranteed Loans in Louisiana, FHA Loan in Louisiana, or if you’re a veteran or qualified family member, VA Loans in Louisiana. You may also want to research if any helpful Louisiana down payment assistance programs may be available.

Search all USDA Guaranteed Loan Limits (Direct and Guaranteed Loans)
Learn about today’s USDA Loan Requirements

Direct Loans aren’t as popular as USDA Guaranteed Loans, which accommodate a wider range of borrower qualifications. The USDA sets specific maximum mortgage limits for Direct Loans in Louisiana. Search home loan limits for your area below.

Louisiana USDA Direct Loan Limits

Area
Direct Loan Limit
Acadia $251,862
Allen $251,862
Ascension $251,862
Assumption $251,862
Avoyelles $251,862
Beauregard $251,862
Bienville $251,862
Bossier $251,862
Caddo $251,862
Calcasieu $251,862
Caldwell $251,862
Cameron $251,862
Catahoula $251,862
Claiborne $251,862
Concordia $251,862
De Soto $251,862
East Baton Rouge $251,862
East Carroll $251,862
East Feliciana $251,862
Evangeline $251,862
Franklin $251,862
Grant $251,862
Iberia $251,862
Iberville $251,862
Jackson $251,862
Jefferson $251,862
Jefferson Davis $251,862
La Salle $251,862
Lafayette $251,862
Lafourche $251,862
Lincoln $251,862
Livingston $251,862
Madison $251,862
Morehouse $251,862
Natchitoches $251,862
Ouachita $251,862
Plaquemines $251,862
Pointe Coupee $251,862
Rapides $251,862
Red River $251,862
Richland $251,862
Sabine $251,862
St. Bernard $251,862
St. Charles $251,862
St. Helena $251,862
St. James $251,862
St. John the Baptist $251,862
St. Landry $251,862
St. Martin $251,862
St. Mary $251,862
St. Tammany $251,862
Tangipahoa $251,862
Tensas $251,862
Terrebonne $251,862
Union $251,862
Vermilion $251,862
Vernon $251,862
Washington $251,862
Webster $251,862
West Baton Rouge $251,862
West Carroll $251,862
West Feliciana $251,862
Winn $251,862

More USDA Loan Resources

USDA Direct Loan Income Limits (Low Income)
USDA Direct Loan Limits (Low Income)

All USDA Loan Limits
All USDA Loan Income Limits
USDA Loan Requirements
USDA Loan Programs
USDA Loan Calculator

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