Buy a Home With No Money Down in Terrebonne Parish

01

How a USDA Loan Works

A USDA loan, formally the Single Family Housing Guaranteed Loan Program, is a mortgage made by an approved lender and backed by USDA Rural Development. According to USDA, it offers 100 percent financing, so qualified buyers can purchase with no down payment. Loans are offered as 30 year fixed rate mortgages, and closing costs and customary expenses may be included in the transaction.

USDA also provides a 90 percent loan note guarantee to the approved lender, which is what allows a lender to offer financing with no down payment. Buyers pay a guarantee fee instead of traditional mortgage insurance, currently 1 percent of the loan amount up front and 0.35 percent of the remaining balance each year, divided into the monthly payment. The upfront fee can generally be rolled into the loan. Interest rates vary by lender, so compare quotes.

The program is designed for homes in eligible rural and suburban areas, and portions of Terrebonne and Lafourche Parish may qualify. Eligibility is decided by the property address, not by the name of the town, and USDA loans are not limited to first time buyers.

The Main Benefits

No down payment. Qualified buyers can finance 100 percent of the purchase.

Lower ongoing cost. The guarantee fee is generally lower than FHA mortgage insurance.

Closing costs. Customary closing costs may be included in the transaction, and some buyers negotiate seller concessions where program guidelines allow.

Repeat buyers welcome. You do not need to be a first time buyer.

Existing homes or new construction. Both can qualify if the property is in an eligible area and meets program guidelines.

02

Who Qualifies

USDA sets the program requirements, and an approved lender confirms them during your application.

Topic	What It Means
Location	The home must be in a USDA eligible area. Check the address on USDA’s eligibility site or send it to me.
Property	An adequate, modest, decent, safe, and sanitary single family home. New construction can qualify if it meets program guidelines.
Occupancy	The home must be your primary residence. Rentals and second homes do not qualify.
Income	Household income cannot exceed 115 percent of the median income for the area, which varies by parish and household size.
Residency	You must be a U.S. citizen, a U.S. noncitizen national, or a qualified alien.
Lender	You apply through a USDA approved lender, who sets credit and debt requirements.

You also generally cannot own another adequate home at the time of purchase. Income limits are updated periodically, so confirm the current figures for your parish and household size on the USDA site or with your lender.

03

Buying With a USDA Loan, Step by Step

1. Check the address and your income. Confirm the property is in an eligible area and that your household income is within the limit for your parish and household size.

2. Speak with a USDA approved lender. The lender reviews your credit, income, and debts, explains your options, and can compare USDA with FHA and other programs.

3. Shop in eligible areas. With your approval in hand, we focus on homes that meet USDA location and property guidelines, and I verify each address before you make an offer.

4. Make an offer and move through the appraisal. The home must appraise and meet program standards for an adequate, safe, and sanitary home.

5. Complete the USDA review and close. USDA Rural Development provides an additional review, so keep your lender and your agent informed of any changes to your finances along the way.

04

USDA vs. FHA

Both loans are designed for primary residences, but they differ in down payment, cost, and location.

	USDA	FHA
Down payment	None	3.5% with a 580 credit score or higher, or 10% with a score of 500 to 579
Upfront fee	1%	1.75%
Annual fee	0.35%	0.55% on typical loans
Location	Eligible areas only	No restriction
Income limit	Yes, 115% of area median	No

Fees shown are USDA’s guarantee fee and FHA’s mortgage insurance premium. These are current typical figures, and they change, so confirm with your lender.

If you qualify for USDA and the home is in an eligible area, it often costs less each month. Because both options have strengths, it is wise to compare them with a lender before you decide.

05

Common Myths

“I would have to buy farmland.” The program finances a modest single family home that will be your primary residence. Location matters, not property type.

“It takes forever to close.” USDA loans include an additional review by USDA Rural Development, so ask your lender for a realistic timeline and plan around it.

“Only very low income buyers qualify.” The program serves low and moderate income households, so many working families may qualify.

“There are no eligible homes near Houma.” Eligibility is decided address by address, and portions of Terrebonne and Lafourche Parish may qualify. Check the map before ruling it out.

06

Questions Buyers Ask Me

Can I use a USDA loan to buy a home in Houma, LA?

Parts of Houma and the surrounding areas of Terrebonne Parish may be USDA eligible. Eligibility is based on the specific property address. Check the USDA eligibility map, or send me the address and I will look it up.

Does USDA cover Thibodaux or Lockport, LA?

Portions of Thibodaux, Lockport, and the surrounding Lafourche Parish area may qualify. Eligibility is specific to the property, so the address needs to be verified on the USDA eligibility map.

What are the USDA income limits for Terrebonne and Lafourche Parish?

USDA sets the limit at 115 percent of the area median income, adjusted for household size, and updates it periodically. Confirm the current limit for your parish and household size with a USDA approved lender or on USDA’s eligibility site.

Do I need a down payment to buy a home in Houma or Thibodaux?

Not with a USDA loan. If you qualify and the home is in an eligible area, USDA offers 100 percent financing. FHA, the other popular choice, requires 3.5 percent down with a credit score of 580 or higher. I can help you compare both.

Can I cover closing costs with a USDA loan?

USDA allows closing costs and customary expenses to be included in the transaction, subject to the appraisal and lender approval. Some buyers also negotiate seller concessions where program guidelines allow, which can reduce the cash needed at closing. Ask your lender what applies to your purchase.

How long does it take to close on a USDA loan in Louisiana?

USDA loans include an additional review by USDA Rural Development, so timelines can be longer than for some other loan types. Ask your lender for an estimate based on your file, and I will help keep the rest of the process on schedule.

What credit score do I need for a USDA loan?

Credit requirements are set by the USDA approved lender who reviews your application. A lender can review your credit and tell you where you stand. If you would like to strengthen your credit first, reach out and I will point you in the right direction.

Can I use a USDA loan if I have owned a home before?

Yes. USDA loans are not limited to first time buyers. You need to meet the income and location requirements, the home must be your primary residence, and you generally cannot own another adequate home at the time of purchase.

Can first time home buyers in Thibodaux use a USDA loan?

Yes. USDA loans work for first time buyers and repeat buyers alike. Send me an address in Thibodaux and I will check it.

Is USDA better than FHA for Louisiana buyers?

It depends on your situation. USDA offers no down payment and generally lower mortgage insurance costs, but has location and income restrictions. FHA requires 3.5 percent down with a 580 credit score but has no geographic limits. If you qualify for USDA and the home is in an eligible area, it often costs less, but both options are worth comparing with a lender.

How do I find out whether a specific address qualifies?

Check it directly on USDA’s eligibility site, or send me the address and I will check it for you. Eligibility is determined by the property, so it is worth verifying every home you are serious about.

How much can I borrow with a USDA loan?

That depends on your income, your debts, and what the lender approves, within the program’s income limit. Start with the payment estimator, then talk with a USDA approved lender.

Does a USDA loan have mortgage insurance?

USDA charges an upfront guarantee fee, currently 1 percent of the loan amount, and an annual fee, currently 0.35 percent of the remaining balance. That is generally lower than FHA mortgage insurance. Rates can change, so ask your lender for the current numbers.

Can I buy a new construction home with a USDA loan?

Yes, as long as the home is in a USDA eligible area and meets program guidelines. Send me the address or the builder and I will help you check it.

Who can help me buy with a USDA loan in Houma or Thibodaux?

I am Brook Freeman with LPT Realty. I can walk you through the process and connect you with lenders who offer USDA financing in Houma, Thibodaux, & Bayou Region.

What is the first step to buy a home in Houma or Thibodaux?

Start at brookfreeman.com. Look at homes, estimate your payment, then call me at 985-688-1707. I will check your address for USDA eligibility and connect you with a lender.