New Orleans Real Estate - Changes to New Orleans First time Homebuyer Program

I came across an article posted on the City Business website last week regarding the first-time homebuyer assistance programs available in New Orleans that I thought could be quite useful. The salary limitations on the Finance Authority of New Orleans' first-time homebuyer programs have been raised substantially. In a January article also posted on the City Business website, the Finance Authority's "Pathway to Home Ownership" Program was only available to those making $33,500 before taxes and deductions. The income limitation has now been raised to $50,280 for an individual in an effort to make the program available to more potential buyers.

For those of you that aren't familiar with the "Pathway to Home Ownership" Program, here are the rules in a nutshell:

• Assistance of up to $65,000 as a 10-year forgivable soft-second mortgage loan at 0% interest.
• Assistance of up to $10,000 as a grant towards closing costs.
• Borrowers must occupy the residence for a minimum of three years.
• Borrowers will see a 25% foregiveness of the soft-second mortgage after 5 years of occupying the residence, and 15% foregiveness each year thereafter, with 100% foregiveness being achieved in 10 years.
• The program only applies to 1-2 unit properties up to a maximum value of $370,884.
• The property must be located in one of the Finance Authority's pre-determined Housing Opportunity Zones, although other areas will be considered depending on certain criteria.(See the Finance Authority's website for details)

If you are first-time homebuyer looking to buy in New Orleans, this is a great opportunity to get you started, as well as build back a great City!! If you have any questions please feel free to contact me!! Please see my website for contact information.

City Business Article: "Income changes made to N.O. homeownership program" (March 3, 2009)

Finance Authority of New Orleans