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About the CAFA First Home Program
The CAFA First Home Program pairs a 30-year fixed-rate government first mortgage with down payment and closing cost assistance of up to 4% of the final loan amount. It is run by the Capital Area Finance Authority in Baton Rouge and funded through tax-exempt revenue bonds. Unlike most CAFA products, it is reserved for first-time buyers, and the assistance is a repayable second lien rather than a grant.
To qualify for CAFA First Home, household income must fall under CAFA's parish limits, which are posted on thecafa.org and were current as of October 2026. In East Baton Rouge, Ascension, Livingston and West Baton Rouge parishes, the non-targeted limit is $94,500 for a one-to-two person household and $108,675 for three or more. St. Tammany runs higher at $107,700 and $123,855, and most rural parishes sit at $84,900 and $97,635. Targeted census tracts get higher limits, such as $113,400 and $132,300 in East Baton Rouge. The minimum credit score is 620 through servicer Land Home Financial Services, or 640 through US Bank. You must be a first-time homebuyer unless you are a veteran or buy in a targeted census tract. Homebuyer education is required except in targeted areas or on VA loans. The August 2026 program matrix lists 60 eligible parishes.
The first mortgage carries a fixed rate that CAFA posted at 6.47% to 6.65% in 2026, with standard mortgage insurance, and the matrix lists origination fees as not applicable. The matrix marks the assistance as repayable, structured as a second lien with 5-year fully non-amortizing terms and a three-year lockout period. By comparison, the LHC MRB Home program offers 5% to 9% assistance, while CAFA Platinum offers similar help without the first-time buyer rule.
How much assistance
Eligibility
- Income limits: Varies by parish and household size (posted on thecafa.org, current October 2026). Non-targeted: $84,900 (1-2 persons) / $97,635 (3+) in most parishes; $94,500 / $108,675 in East Baton Rouge, Ascension, Livingston, West Baton Rouge and nearby parishes; $107,700 / $123,855 in St. Tammany. Targeted census tracts have higher limits (e.g., $113,400 / $132,300 in East Baton Rouge).
- First-time buyer required: Yes — Must be a first-time homebuyer unless buying in a targeted census tract or a veteran.
- Credit score minimum: 620
- Geographic restrictions: Available in East Baton Rouge Parish and the surrounding nine-parish capital region.
- Homebuyer education required: Yes
How to Apply for CAFA First Home Program
Step 1: Check your parish income limit
Find your parish in the income table at thecafa.org/homebuyers/cafa-first-home and compare it with total household income. In East Baton Rouge the non-targeted limit is $94,500 for one or two people and $108,675 for three or more. Ask a lender whether your target address sits in a targeted census tract, because those tracts carry higher limits and waive the first-time buyer rule.
Step 2: Complete a homebuyer education course
The CAFA First Home matrix requires homebuyer education before closing, with exceptions for homes in targeted areas and for VA loans. Ask your CAFA lender which course they accept and finish it early so the certificate is ready for underwriting. At the same time, gather two years of W-2s and tax returns, 30 days of pay stubs, two months of bank statements and your photo ID.
Step 3: Choose a CAFA approved lender
CAFA does not lend directly. You apply through one of its 28 approved lenders, including Eustis Mortgage, Gulf Coast Bank and Trust, Red River Bank, Movement Mortgage and Land Home Financial Services. The full list sits on the program page. Compare at least two lenders, and call CAFA at (225) 771-8567 if you have trouble finding a participating loan officer near your parish.
Step 4: Get pre-approved for a government loan
The program runs on FHA, VA and USDA Rural Development loans. Your lender checks credit against the servicer minimum: 620 for Land Home or 640 for US Bank. US Bank caps debt-to-income at 45% for scores of 640 to 679 and 50% at 680 or higher, while Land Home relies on automated underwriting approval. Manual underwriting is allowed under agency rules.
Step 5: Find an eligible home and make an offer
The home must be your primary residence in one of the 60 eligible parishes. Eligible property types include one-unit single-family homes, condominiums, PUDs and townhomes, and Land Home also allows manufactured homes. Ask the seller for closing cost concessions in your offer, since CAFA's 4% second lien may not cover your entire down payment, closing costs and prepaid items on its own.
Step 6: Lock the rate and close
Your lender reserves CAFA funds and locks the fixed first-mortgage rate, which CAFA currently posts at 6.47% to 6.65%. The lender advances the assistance at closing, and the master servicer reimburses the lender after it buys the loan. Before signing, ask for the second lien's repayment terms in writing, including the 5-year term and three-year lockout listed in the matrix.
Real Cost Example
On a $230,000 home in Baton Rouge, the city's median price, an FHA buyer needs a 3.5% down payment of $8,050. The base loan is $221,950, and FHA's 1.75% upfront mortgage insurance premium adds $3,884 if financed. CAFA First Home assistance of 4% on the base loan comes to about $8,878, enough to cover nearly all of the $8,050 down payment.
Estimated closing costs in the Baton Rouge area run $4,500 to $7,000, so the buyer needs about $12,550 to $15,050 in total. After the $8,878 in CAFA assistance, roughly $3,672 to $6,172 remains due from the buyer. Seller concessions negotiated in the offer can cover much of that gap, since FHA allows sellers to pay closing costs.
We could not verify a local grant that officially stacks with CAFA First Home, so the realistic second layer is a documented gift from a relative. A $4,000 gift plus $2,172 in seller-paid costs would bring cash to close near $0 at the high-cost end. Remember that the $8,878 second lien is repayable, so budget for paying it back.
Combining With Other Programs
CAFA First Home already includes its own assistance of up to 4% of the final loan amount, so most stacking happens with seller concessions and gift funds rather than a second program. CAFA's own website does not list any outside grant that pairs with First Home. Before you count on a city or parish program, such as the East Baton Rouge Office of Community Development (225-389-3039), ask both offices in writing whether a third lien is permitted.
CAFA First Home cannot be combined with Louisiana Housing Corporation first-mortgage programs such as LHC MRB Home, because each program supplies its own first mortgage. The same applies to CAFA Platinum and the Eustis Edge Program. Ask CAFA before adding the Louisiana Mortgage Credit Certificate, since it is a separate LHC product and may not pair with a bond-financed loan. Call CAFA at (225) 771-8567 or (225) 771-8573 with questions.
Other ways to lower cash to close include asking the seller to pay closing costs, scheduling closing late in the month to reduce prepaid interest, and comparing lender credits across two or three of CAFA's 28 approved lenders. Buyers in a targeted census tract also skip the education requirement and qualify under higher income limits.
Pros and Cons
The CAFA First Home Program gives first-time buyers up to 4% of the loan amount for down payment, closing costs or prepaid items, about $8,878 on a $221,950 FHA loan. It works with FHA, VA and USDA loans, accepts credit scores from 620 through Land Home, and allows manual underwriting. Income limits are generous for the region, reaching $108,675 for a family of three in East Baton Rouge and $150,780 in targeted St. Tammany tracts.
The biggest limitation is that the assistance is repayable. The August 2026 matrix lists it as a second lien with 5-year non-amortizing terms and a three-year lockout, so it is not free money. The program is also limited to first-time buyers outside targeted tracts, requires homebuyer education, and covers 60 parishes rather than all 64. Repeat buyers should look at CAFA Platinum, while buyers needing more cash should compare LHC MRB Home, which offers 5% to 9% assistance.
Frequently Asked Questions
Is CAFA First Home assistance a grant?+−
What are the CAFA First Home income limits?+−
What credit score do I need for CAFA First Home?+−
Do I have to be a first-time homebuyer for CAFA First Home?+−
What is the CAFA First Home interest rate?+−
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Program details last verified: October 13, 2026