City of Lake Charles Down Payment and Closing Cost Assistance Program

What is City of Lake Charles Down Payment and Closing Cost Assistance Program?

City of Lake Charles Down Payment and Closing Cost Assistance Program is a forgivable loan for homebuyers in Lake Charles, Louisiana, administered by City of Lake Charles Community Development Department.

• The City of Lake Charles Community Development Department provides Down Payment and Closing Cost Assistance to low- and moderate-income, first-time homebuyers purchasing a single-family home within the city limits. Assistance of up to $10,000 is a 0%-interest forgivable second mortgage that depreciates equally over a 5-year term and is fully forgiven if the buyer occupies the home as their primary residence for 5 years. Funds are CDBG monies on a first-come, first-served basis.
• Up to $10,000 toward down payment and closing costs.
• 0% interest forgivable second mortgage.
• Fully forgiven after 5 years of owner-occupancy.
• No monthly payments.
• Funding comes from Community Development Block Grant (CDBG); funded within the City's annual CDBG/HOME allocation (FY2024-2025 Annual Action Plan).

How much assistance does it provide?

City of Lake Charles Down Payment and Closing Cost Assistance Program offers up to $10,000 in assistance.

• Amounts are the program's published maximums, not an offer — City of Lake Charles Community Development Department determines any individual award.

Do you have to pay it back?

City of Lake Charles Down Payment and Closing Cost Assistance Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgivable second mortgage depreciates equally each year over 5 years and is fully forgiven at the end of year 5. Sale, refinance, or loss of owner-occupancy before year 5 triggers pro-rated repayment of the unforgiven balance.
• The assistance is recorded in Second position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Lake Charles Down Payment and Closing Cost Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

City of Lake Charles Down Payment and Closing Cost Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

• Gross household income at or below 80% AMI (HUD MSA income figures for Lake Charles dated March 2024); reported 4-person 80% AMI limit $63,200. Counts all household members.
• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Lake Charles Down Payment and Closing Cost Assistance Program can be used for Single Family.

• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

City of Lake Charles Down Payment and Closing Cost Assistance Program serves buyers purchasing in Lake Charles, Louisiana.

How do you apply?

Applications for City of Lake Charles Down Payment and Closing Cost Assistance Program go through City of Lake Charles Community Development Department, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Approved homebuyer education program (certificate required); locally provided through the Calcasieu Parish Police Jury..

2. 2

   Contact City of Lake Charles Community Development Department to reserve funds

   Funds are reserved with the provider and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.