Homeownership (Single Family) |
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First-time Homebuyer Program
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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 30-year, fixed-rate mortgage at a below-market interest rate to first-time homebuyers. LHFA's current 2007C Program offers a four-tiered interest rate structure:
HOME/MRB Program Loans:
The HOME/MRB Program will bear interest at 4.85%. 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 and closing costs. 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.
Low-Rate Program Loans:
The Low Rate Program will bear interest at 5.95%. The borrower’s investment will be regulated by the particular type of loan being made – FHA, VA, RD or Conventional.
Teachers’ Assisted Program Loans:
The Teachers’ MRB Assisted Program will bear interest at 6.25%. Assistance payments equal to 4% of the Mortgage Loan amount will be paid at closing to cover part of the down payment and closing costs. To qualify for this special set-aside, the borrower must be an active, regular employee of a parish, city, or private school board, holding a Louisiana teacher’s certificate and whose employment requires such a certificate. Funds will be set aside for 45 days to fund Teachers Assisted loans.
Assisted Program Loans:
The interest rate for the Assisted Program will bear interest at 6.30%. Assistance payments equal to 4% of the Mortgage Loan amount will be paid at closing to cover part of the down payment and closing costs.
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
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 or qualifying parishes in the Katrina Zone or the Rita Zone. Some 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 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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