Buyer guide · Closing
Closing costs for buyers in Louisiana
Under the standard Louisiana purchase agreement, the buyer pays the Act of Sale costs, title search, title insurance and the costs of getting the loan, unless the contract says otherwise. On top of your down payment, plan for prepaid interest, the first 6 to 12 months of homeowner’s insurance, an initial escrow deposit and, in a high-risk flood zone, flood insurance. Your lender’s Loan Estimate and Closing Disclosure show your exact numbers.
Reviewed by Nicole Gaudet, REALTOR®
Updated October 29, 2026
What buyers pay
Who pays what at a Louisiana closing
From the 2026 Louisiana Real Estate Commission purchase agreement, unless your contract says otherwise.
| Cost | What it is | Who usually pays |
|---|---|---|
| Loan costs | Lender fees, appraisal and other costs required to get financing | Buyer |
| Title work | Title search, abstracting and title insurance | Buyer |
| Act of Sale | The closing itself, where ownership transfers | Buyer pays the Act of Sale costs; seller pays its own closing fees |
| Lender’s title policy | Usually required to get a mortgage. It protects the lender, not your equity | Buyer |
| Owner’s title policy | Optional. It can help protect your investment in the home | Buyer, if you choose it. Buying both policies from one provider usually costs less in total |
| Prepaid items | Interest from closing to the end of that month, and usually 6 to 12 months of homeowner’s insurance | Buyer |
| Initial escrow deposit | Money to start your escrow account for taxes and insurance, if your lender requires one | Buyer |
| Property taxes, HOA and condo dues | The current year’s amounts, split between buyer and seller | Prorated through the date of the Act of Sale |
| Seller certificates | Tax, mortgage and conveyance certificates and releases | Seller |
Sources: LREC, 2026 Residential Agreement to Buy or Sell (Rev. 01/2026); CFPB, what fees are paid at closing; CFPB, Closing Disclosure explainer; CFPB, Loan Estimate explainer; CFPB, initial escrow deposit; CFPB, lender's title insurance; CFPB, owner's title insurance.
Costs buyers miss
Five costs that surprise Louisiana buyers
None of these is unusual. They catch people because they arrive after closing or sit outside the lender’s fees.
1. The tax bill may come in the seller’s name. In East Baton Rouge Parish, if you buy after January 1 the bill can stay in the prior owner’s name for that year, and the Sheriff says it does not prorate between buyer and seller. Taxes are prorated in your closing figures, but it is the new owner’s job to see the bill gets paid. Bills there generally go out the last week of November.
2. Homestead is not automatic. You have to apply with your parish assessor after you buy. See our homestead exemption guide.
3. Insurance costs more here. Get homeowner’s quotes before your inspection period ends (see our home inspection checklist), and ask about the hurricane deductible. Louisiana law applies one named-storm or hurricane deductible per calendar year.
4. Flood is a separate policy. Louisiana homeowner’s policies do not cover flood. If the home is in a Special Flood Hazard Area and you have a government-backed mortgage, flood insurance is required; some lenders require it outside those areas too. See our flood zones and insurance guide.
5. Condo and HOA paperwork. Dues are prorated at closing. For a condo resale, the seller must give you a resale certificate, and you can void the contract until you get it and for five days after.
Sources: East Baton Rouge Parish Sheriff, tax payments; East Baton Rouge Parish Assessor, general information; La. R.S. 47:2127; Ascension Parish Assessor, homestead exemption; Insurance Information Institute, homeowners premiums by state (2022, NAIC data); Louisiana Department of Insurance, hurricane season tips; Louisiana Department of Insurance, homeowners insurance guide; La. R.S. 22:1337; FloodSmart, who needs flood insurance; LREC, 2026 Residential Agreement to Buy or Sell (Rev. 01/2026); La. R.S. 9:1124.107, condominium resale certificate.
FHA, VA and USDA
Upfront fees on government-backed loans
These can usually be financed into the loan; ask your lender how they affect your payment.
| Loan | Upfront fee | Notes |
|---|---|---|
| FHA | 1.75% of the base loan amount (upfront mortgage insurance premium) | Set by HUD |
| VA, first use | 2.15% with less than 5% down; 1.5% with 5% or more; 1.25% with 10% or more | No funding fee if you receive VA compensation for a service-connected disability |
| VA, after first use | 3.3% with less than 5% down; 1.5% with 5% or more; 1.25% with 10% or more | VA limits seller concessions to 4% of the home’s reasonable value |
| USDA | 1.00% upfront guarantee fee | Plus a 0.35% annual fee, for fiscal year 2027 (Oct. 1, 2026 to Sept. 30, 2027) |
Sources: HUD Mortgagee Letter 2023-05; VA, funding fee and closing costs; USDA Rural Development, FY 2027 guarantee fees (Sept. 16, 2026).
When you see the numbers
From application to closing day
Federal rules give you two chances to check your costs before you sign.
- Loan Estimate.Your lender must send it within three business days of receiving your application. Compare it across lenders.
- Negotiate seller credits, if any.A seller can agree to pay part of your costs, but the CFPB notes the seller will usually ask for a higher price to cover it.
- Closing Disclosure.You must receive it at least three business days before closing. Check it against your Loan Estimate.
- Cash to close.Usually paid by cashier’s check or wire, and your lender will ask for proof of where the money came from. Call the title company at a number you already know to confirm wire instructions.
- After closing.Apply for homestead with your assessor, and make sure the year’s property tax bill is paid by December 31.
Sources: CFPB, Loan Estimate timing; CFPB, what fees are paid at closing; CFPB, Closing Disclosure timing; CFPB, Loan Estimate explainer; Ascension Parish Assessor, homestead exemption; La. R.S. 47:2127.
Questions
Buyer closing costs in Louisiana: questions
Who pays closing costs in Louisiana, the buyer or the seller?
Under the 2026 Louisiana Real Estate Commission purchase agreement, the buyer pays the Act of Sale costs, abstracting, title search, title insurance and other costs required to get financing, unless the contract says otherwise. The seller pays its own closing fees and the tax, mortgage and conveyance certificates.
How much are closing costs for a buyer in Louisiana?
It depends on your loan, price, insurance and parish. Your lender must send a Loan Estimate within three business days of your application, and it lists your estimated closing costs and cash to close.
Source: CFPB.
Are property taxes prorated at closing in Louisiana?
Yes. The standard purchase agreement prorates the current year's real estate taxes through the date of the Act of Sale. The bill may still be mailed in the prior owner's name, and it is the new owner's responsibility to see it is paid by December 31.
Sources: LREC 2026 agreement; East Baton Rouge Parish Assessor; La. R.S. 47:2127.
Does Louisiana have a real estate transfer tax?
The Louisiana Constitution bars any new tax or fee on the sale or transfer of immovable property after November 30, 2011. In New Orleans, the Orleans Parish Civil Clerk collects a documentary transaction tax that it says is paid by the seller.
Sources: La. Const. Art. VII, Sec. 2.3; Orleans Parish Civil Clerk.
Can the seller pay my closing costs?
Does homeowners insurance cover flooding in Louisiana?
No. The Louisiana Department of Insurance says homeowners policies in Louisiana do not cover flood damage. A flood policy typically takes 30 days to take effect.
Source: Louisiana Department of Insurance.
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Tell us the price range and area you are looking at. We will walk you through the costs in that parish before you make an offer.
Nicole Spellman Group is a real estate team, not a lender, title company or insurer. Your Loan Estimate and Closing Disclosure show your actual costs.