Louisiana Mortgage Qualification Estimator

Yes, you can keep the marital home in a Louisiana divorce if you can refinance the mortgage into your name alone and buy out your ex-spouse's community property share. Louisiana's 50/50 community property division under Civil Code Article 2336 means you'll typically owe half the equity. With median home values at $253,100, a buyout could range from $50,000-$125,000 depending on equity. You must qualify for the full mortgage payment on your single income with a DTI ratio under 43%.

To qualify for a mortgage on one income in Louisiana, your total debt-to-income ratio must stay below 43% (50% maximum for some FHA loans). For Louisiana's median home price of $253,100, you'd need approximately $6,000-$6,500 in gross monthly income. The Louisiana Housing Corporation's MRB HOME program offers below-market rates plus 5-9% of the loan amount as a grant for buyers earning 80% or less of area median income. Completing LHC's certified homebuyer education course is required for all state assistance programs.

Yes, spousal support (final periodic support under Louisiana Civil Code Article 112) counts as qualifying income for mortgages if you can document 6+ months of consistent receipt and prove at least 36 months of payments remain. Lenders require your divorce judgment, bank statements showing deposits, and proof of the payor's ability to continue payments. Child support income follows the same documentation rules. Combined support payments can significantly increase your qualifying loan amount.

Refinancing is the only guaranteed way to remove your ex-spouse from mortgage liability in Louisiana. A quitclaim deed transfers title but leaves both parties legally responsible for the loan. Some Louisiana lenders allow loan assumption under an assignability clause when the home is awarded in divorce, which may bypass income and credit qualification requirements. If refinancing isn't immediately possible, Louisiana courts can impose a vendor's lien under Civil Code Article 2369.1 to protect the departing spouse's equity interest.

Louisiana's median home price is $253,100 as of December 2025, with the average home value at $210,758. Prices vary significantly by region—Metairie homes average $320,000 (up 10.3% year-over-year) while Kenner reached $299,000 (up 34.2%). Single-family homes average $274,000 statewide, while condos average $220,000. Louisiana home prices are forecast to rise 2-4% in 2026 with mortgage rates expected to remain in the 6% range, creating modest affordability improvements.

Divorce itself doesn't appear on credit reports or directly affect your score in Louisiana. However, joint account closures, missed payments during divorce proceedings, and high credit utilization from legal fees commonly cause credit damage. If your ex-spouse misses payments on joint accounts—including the mortgage—your credit suffers equally. Close or convert joint credit cards to individual accounts and monitor all joint debts through your divorce. A 640 minimum credit score is required for Louisiana Housing Corporation assistance programs.

Divorced individuals who haven't owned property in 3 years qualify as first-time homebuyers for Louisiana Housing Corporation programs. The MRB HOME program offers below-market rates plus 5-9% of the mortgage as a grant for buyers earning 80% or less of AMI. The Pathways to Homeownership program provides forgivable soft second mortgages for buyers under 80% AMI—fully forgiven after 10 years of occupancy. New Orleans offers up to $35,000 in forgivable second mortgages plus $5,000 in closing cost assistance through its Direct Homebuyer program.

Yes, funds from your Louisiana divorce settlement can be used as a down payment. Document the source with your property settlement agreement or divorce judgment showing the distribution of community property. Cash-out refinance proceeds, retirement account distributions under a QDRO, or equity buyout payments from your ex-spouse are all acceptable down payment sources. Lenders require a clear paper trail showing the funds originated from the divorce settlement—typically 60 days of bank statements showing the deposit and the divorce decree.