Maybe you’re buying your first home in Louisiana, or perhaps you’re relocating to Louisiana from another state. Whatever the case, it’s important that you educate yourself on Louisiana home loans before shopping for a home and mortgage. This article establishes the specifics of what a buyer needs to know prior to purchasing a home in Louisiana:

Once Hurricane Katrina hit Louisiana in the summer of 2005, the full state of Louisiana was made eligible for public assistance. However, the southern half of Louisiana incurred the majority of damage. There was a 20% influx in the cost of homes in the undamaged areas because evacuees were buying new homes.
The median value of a home in Louisiana is currently $85,000; nonetheless, the median cost of a home is projected to increase with post-Hurricane Katrina demand. Home values in damaged areas are projected to increase once reconstructed. Additionally, current interest rates in Louisiana are above the national average.

Louisiana state law does not allow the issuance of home equity lines of credit. It prohibits prepayment penalties and reduced rate options on adjustable-rate mortgages and fixed-period adjustable-rate mortgages. In order to counteract predatory lending Louisiana has a Residential Mortgage Lending Act that implements conditions on mortgage companies.