Louisiana Housing Finance Agency offers a number of opportunities for low and moderate income Louisiana families to realize their dreams of owning a home through its First-Time Homebuyer Program.
The program offers a variety of 30-year, fixed-rate mortgages, some at below market interest rates to potential homebuyers. LHFA's current 2009A Program offers a four-tiered interest rate structure:
HOME/MRB Program Loans:
The HOME/MRB Program will bear interest at 4.10%. Assistance Payments equal to 4.50% to 9% of the Mortgage Loan amount will be paid at closing to cover part of the down payment, closing costs, and prepaid items. For HOME/MRB borrowers, up to 2% of the interest rate each month on a HOME Assisted Program Loan may be deposited into an escrow fund and transferred to an eligible borrower obtaining a HOME Assisted Program loan in order to provide assistance to such eligible borrower for prepaying insurance premium payments. Lenders are required to complete the “Escrow Subsidy Agreement Exhibit “Q” for borrowers receiving this subsidy. The Escrow Subsidy Agreement will be transmitted to lenders upon approval of loans.
CDBG/MRB Program Loans:
The CDBG/MRB Program will bear interest at 4.11%. Assistance payments equal to 4.50% to 9% of the Mortgage Loan amount will be paid at closing to cover part of the down payment, closing costs, and prepaid items. Properties are limited to 11 parishes and must be 1 family or 2 family homes. All applicants must be first-time homebuyers and must agree to use the home as their primary residence for at least 3 years.
Assisted Program Loans:
The interest rate for the Assisted Program will bear interest at 6.10%. Assistance payments equal to 4% of the Mortgage Loan amount will be paid at closing to cover part of the down payment, closing costs, and prepaid items.
Low Rate - Homebuyer Tax Credit Program Loans:
Low Rate - Homebuyer Tax Credit Program will bear an interest rate at 5.60%. This program will advance up to $5,000 per loan for down payment, closing costs, and prepaid items. The borrower must qualify for the $8,000 First-Time Homebuyer Tax Credit. There will be a second mortgage executed with this program and must close on or before 11/30/09. After the initial deferral period through 6/30/10, the loan will fully amortize over ten years, starting with payments 8/1/10, with an interest rate of 7.60% unless the Agency is repaid in full with the borrowers federal tax refund. The second morgage loan payment must be included in the Debt to Income Ratio. This program will require a $100 Application Fee in addition to the $75 Compliance Fee. A Homebuyer Tax Credit Program Disclosure is required detailing the information on the terms of the loan, the tax credit, and the option to repay LHFA through the federal tax credit.
American Dream Downpayment Initiative (ADDI):
Louisiana Housing Finance Agency (the “Agency”) has implemented a homeownership initiative in partnership with its participating lenders to expand homeownership opportunities for low-income households throughout the State of Louisiana.
The ADDI program will provide grants up to 6% of the sales price or $10,000, whichever is greater, in connection with the lender’s first mortgage loan.
Eligibility
2009A Bond Issue allows for the following:
- The first-time homebuyer rules are waived for the Assisted Program loans ONLY in all 64 parishes located in the State of Louisiana.
- The purchase price and income limits are elevated to targeted area limits for the Assisted and Low Rate - Homebuyer Tax Credit Programs ONLY in all 64 parishes located in the State of Louisiana.
- Visit the website viewing Exhibit F1 for Standard MRB Maximum Permissible Acquisition Cost & F2 for HOME/MRB Maximum Permissible Acquisition Cost AND
- Visit the website viewing Exhibit G 2009 HOME/MRB Income Limits, 2009 MRB Income Limits, and CDBG/MRB Income Limits
- For HOME/MRB and CDBG Program Loans use the HOME/MRB Income and Purchase Price limits.
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 the number of units in the property and if it is located 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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