Homeownership (Single Family) |
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First-time Homebuyer Program
ADDI
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American Dream Downpayment Initiative (ADDI) Outline
The Louisiana Housing Finance Agency (the “Agency”) has implemented a homeownership initiative in partnership with its participating lenders to expand home ownership opportunities for low-income households throughout the State of Louisiana.
Eligible Funds
Maximum Grant per loan cannot exceed the greater of 6% of the purchase price or $10,000. Funds will be reserved on-line on a first come, first served basis.
Lenders will originate a first mortgage loan; the ADDI funds will be in the form of a soft second mortgage which is forgivable 20% per year.
HOME/MRB and MRB loans are prohibited from participation in the ADDI Program.
The interest rate charged by the lender cannot exceed current market rates for “A” paper loans. The lender must certify that the rate charged the borrower will not exceed current market rates as of the date of lenders’ commitment of the interest rate to the borrower such that the HUD-1 Annual Percentage Rate (APR) will reflect only such adjustments to the interest rate as is necessary to evidence customary and usual charges to close the mortgage loan. Louisiana Housing Finance Agency requires its participating lenders and other financial partners to comply with all applicable laws and regulations regarding predatory lending.
The first mortgage loans originated by the participating lenders must be 30-year fixed rate mortgages only. Conventional, FHA, VA and Rural Development loans are acceptable.
Eligible Properties
Single-family, one-unit dwellings only.
New, double-wide mobile homes, with minimum square footage of 800’ and dimensions of 20’x 40’, permanently affixed and titled as real estate with an estimated life of greater that 30 years.
Condos and townhomes are eligible.
Purchase price cannot exceed limits as established in Exhibit L.
Property must meet minimum HQS and if built prior to 1978, Lead Based Paint requirements.
The ADDI statute prohibits seller-financed organizations from participating in ADDI as subrecipients or contractors. No amount of ADDI funds may provide funding to an entity or organization that provides down payment assistance if the activities of that entity or organization are financed in whole or in part, directly or indirectly, by contributions, service fees or other payments from the sellers of housing, whether or not made in connection with the sale of specific housing acquired with ADDI funds.
Eligible Borrowers
Borrowers must be first-time homebuyers (persons not owning a residence in the last 3 years).
Borrowers cannot exceed income limits as outlined in Exhibit L.
No cash back to borrowers at closing – funds may only be used for down payment and closing costs assistance.
Lender Requirements
Lender will be required to fund the Grant at closing. LHFA will reimburse the lender upon receipt and review of the certified recorded Regulatory Agreement from the closing and HUD-a statement supporting the Grant. The lender must agree to supply LHFA with a certified copy of the recorded Regulatory Agreement within 30 days of closing.
Must provide semi-annual reports to LHFA of borrower’s payment history.
Must provide documentation on early intervention services should the borrower become 30 days delinquent.
Following is
a list of Adobe Acrobat files available for downloading. Documents
in Adobe Acrobat "pdf" file format must be viewed with Adobe Acrobat
Reader. If you do not have Acrobat Reader, a free version can be downloaded
from www.adobe.com .
Required Documentation:
ADDI Program Outline
ADDI Participating Lenders
Exhibit A – Seller Affidavit
Exhibit B – Borrower's Affidavit and Certification
Exhibit B(1) – Purchase Price Worksheet
Exhibit B(2) – Income Eligibility Worksheet
Exhibit D(1) – ADDI Project Summary
Attachment I - Computation of Minimum Income and Cash
Attachment II - Household Income Certification Worksheet
Attachment III - Application Certification
Exhibit D(2) – Homebuyer Regulatory Agreement, Including Exhibit A to Exhibit D(2)
Exhibit E– Lenders' Closing Certification
Exhibit F– ADDI Note (Closing Document)
Exhibit G – ADDI Mortgage (Closing Document)
Exhibit I – Participation Certification (Submitted prior to participation in Initiative)
Exhibit L – Income Limits and Purchase Price Limits
Eligibility
Prospective homeowners must be first-time homebuyers (persons not owning
a principal residence in the last three years) or they must purchase a
home in a targeted area (some exceptions apply). A targeted area is an
economically-distressed area as designated by HUD. Most parishes contain
both targeted and non-targeted areas. Louisiana's targeted
areas are available for downloading. They are in Adobe Acrobat "pdf" file format and must be viewed with Adobe Acrobat Reader. If you do not
have Acrobat Reader, a free version can be downloaded from www.adobe.com.
The prospective homeowner must also meet income and purchase price limits .
Income limits vary with the number of persons in the household and by
parish. Purchase price limits vary according to whether a home is new
or existing or if it is in a targeted or non-targeted area. Also, the
homebuyer must use the house as his/her principal place of residence.
If you are interested in owning your home, please contact a participating
lender who can provide you with detailed information regarding these programs
and guide you through the financing options that are available. Your lender
and real estate agent can help you through the process of purchasing your
first home and should be able to answer any questions you may have regarding
the program.
LOANS
ARE AVAILABLE ON A FIRST-COME, FIRST-SERVED BASIS.
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