CAFA First Home (Series 2026A & B Mortgage Revenue Bonds)
Taking applications61 Louisiana parishes (all except Orleans, Jefferson and a few others)
- Help available
- 4% of the total note amount for down payment, closing costs, prepaids or Realtor commission, with a 30-year fixed FHA/VA/USDA first mortgage
- Kind of help
- Forgivable second loan
- Who it's for
- First-time homebuyers; waived for veterans (DD-214, one-time use) and targeted census tracts
- Income cap
- Effective 05/01/26, non-targeted: $84,900 (1-2) / $97,635 (3+) in most parishes, up to $107,700 / $123,855 in St. Tammany; targeted areas: $101,880 / $118,860 up to $129,240 / $150,780
- Price cap
- $544,233 (1 unit, non-targeted); $665,173 (targeted)
- Only for first-time buyers?
- Yes
- Also worth knowing
- 0% 5-year second: no forgiveness in months 1-36, then 1/24 forgiven each month. Homebuyer education for all buyers on title. Min FICO 620 (640 US Bank).
Guide published 05/13/26, rev. 07/20/26; program page https://thecafa.org/homebuyers/cafa-first-home (shows 7% government rate). This is a separate bond first mortgage: choose CAFA OR LHC HomeStart, not both. Essentially a second regional/statewide option with income and price limits close to LHC HomeStart Assist.
Checked November 2026 · our sources
How CAFA's 4% second works
The Capital Area Finance Authority (CAFA) issues mortgage revenue bonds, Series 2026A and B, and offers loans through participating lenders using eHousingPlus. Buyers receive 4% of the total note amount, usable for the down payment, closing costs, prepaids or the Realtor commission. The first mortgage is a 30-year fixed FHA, VA or USDA loan; the program page shows a 7% government rate.
Forgiveness has a specific timeline. The second is a 0% five-year loan with no forgiveness during months 1 to 36. After that, 1/24 of the balance is forgiven each month until it reaches zero at month 60. Selling or refinancing in the first three years means repaying the full amount.
Limits and requirements
You must be a first-time buyer, though the rule is waived once for veterans with a DD-214 and for homes in targeted census tracts. Income limits effective May 1, 2026 for non-targeted areas are $84,900 for one or two people and $97,635 for three or more in most parishes, rising to $107,700 and $123,855 in St. Tammany. Targeted areas run from $101,880 / $118,860 up to $129,240 / $150,780. The price limit is $544,233 non-targeted and $665,173 targeted. The minimum credit score is 620 (640 with U.S. Bank), and every buyer on title completes homebuyer education. CAFA covers most parishes except Orleans, Jefferson and a few others; see the East Baton Rouge or Livingston Parish guides.
CAFA vs. HomeStart Advantage
CAFA First Home is a separate bond first mortgage, so you choose CAFA or an LHC HomeStart loan, not both. Here is how they line up:
| CAFA First Home | HomeStart Advantage |
|---|
| Assistance | 4% of note | 4% of loan |
| Forgiveness | Monthly from month 37 to 60 | Full at 60 months |
| First-time rule | Yes (waivers apply) | No |
| Minimum credit | 620 | 640 |
| Loan types | FHA, VA, USDA | FHA, VA, USDA, conventional |
A 620 score can open CAFA when 640 is out of reach; our credit score guide explains how to close that gap.
How to apply
Find a CAFA participating lender, get pre-approved for an FHA, VA or USDA loan, complete homebuyer education for everyone on title, and have the lender reserve your loan through eHousingPlus. You can check your eligibility for both CAFA and the state program at once.
Parishes we cover that it serves: East Baton Rouge Parish, St. Tammany Parish, Lafayette Parish, Caddo Parish, Calcasieu Parish, Ouachita Parish, Livingston Parish, Tangipahoa Parish, Ascension Parish, Bossier Parish, Rapides Parish, Terrebonne Parish, Lafourche Parish, St. Landry Parish, Iberia Parish, Vermilion Parish, Acadia Parish, St. Martin Parish.
What people ask about CAFA First Home (Series 2026A & B Mortgage Revenue Bonds)
Which parishes does CAFA First Home cover?
61 Louisiana parishes, which is all except Orleans, Jefferson and a few others.
When is the CAFA second mortgage forgiven?
Nothing is forgiven in months 1 to 36. After that, 1/24 is forgiven each month until month 60.
Can I use CAFA First Home with HomeStart Advantage?
No. CAFA is a separate first mortgage, so you choose CAFA or an LHC HomeStart loan.
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Summarized from the program's official page as of November 2026. Funding and rules can change, so confirm the current terms with the program or a lender who takes part. Louisiana Down Payment Assistance has no connection to this program.
