First Time Homebuyer Fund through FANO is back up and running!

Blogging From The Desk of Alicia Lagarde-Craig

First-Time Homebuyer Fund

The First Time Homebuyer Fund offers soft-second mortgage loans at zero (0%) per cent interest up to $65,000 and a closing cost assistance grant up to $10,000 for a homebuyer who has not owned a principal residence within the last three (3) years or is a single parent who no longer owns a home because of a divorce. This fund serves first-time homebuyers with household incomes of 120% or less of the metropolitan area median income (AMI) and who are purchasing homes primarily in the Housing Opportunity Zones. Gross household incomes of qualifying borrowers for this fund cannot exceed the following:

"New higher income limits approved!"

1 person -- $50,280
2 persons - $57,360
3 persons - $64,560
4 persons - $71,760
5 persons - $77,520
6 persons - $83,280
7 persons - $89,040
8 persons - $94,680

The borrower must also invest at least 1% of the purchase price or $1,500 from personal funds, which ever is greater.

Homebuyers who have already received payments from the State under the “sell” or “relocate” option under the Road Home Homeownership Program are not eligible to receive additional financial assistance from this program.

To learn more about the Pathway to Homeownership Soft-Second Mortgage Loan Program
call Alicia Lagarde-Craig at 504.382.3724 or Jeff Craig at 504.352.6190.

This Finance Authority will be processing an additional 164 Loans on a First Come First Served Basis, so if you are a serious buyer and would like more information regarding this program, please call Alicia or Jeff to get the process started.

Pathway to Homeownership Soft-Second Mortgage Loan Program

Blogging From The Desk of Alicia Lagarde-Craig

Pathway to Homeownership Soft-Second Mortgage Loan Program

Own a Home. This is the Path.

Receive up to $65,000 soft second home mortgage at 0% interest.

100% forgivable in 10 years with continuous owner occupancy; payable only upon sale or refinance.

Up to $10,000 closing cost assistance grant also available.

Eligible Properties:

*One or two unit residences within one of the Orleans Parish Housing Opportunity Zones (see map on http://www.financeauthority.org/), or when the residence is part of the New Orleans Redevelopment Authority (NORA) Re-development Portfolio or when the seller can demonstrate at least $5200 of damages realized from Hurricane Katrina and/or Rita within Orleans Parish

*Maximum Property values: One unit, either New or Existing: $289,704; and Two unit, Existing Only: $370,884

*All properties must meet City Building Code and Zoning Code requirments as well as the physical standards and inspection procedures of FHA/VA, Fannie Mae or Freddie Mac mortgage loan product chosen by the borrower

*Newly constructed, reconstructed or renovated homes are eligible. Modular or panelized construction is also eligible

Eligible Borrowers:

*Have not owned a home within the last 3 years or no longer own your home because of a divorce or death of a spouse

*Have not received payments from Road Home under the 'sell' or 'relocate' option *Family incomes at or below the following:

1 person $50,280

2 persons $57,360

3 persons $64,560

4 persons $71,760

5 persons $77,520

6 persons $83,280

7 persons $89,040

8 persons $94,680

*12 Hour homebuyer education required

*Minimum personal investment of 1% of purchase price or $1500, whichever is greater

Steps to Buying Your New Home:

1. Visit the Finance Authority of New Orleans website to learn about the program at http://www.financeauthority.org/.

2. Gather your financial information: tax returns and W-2s for the last three consecutive years, pay-stubs within the last three months, financial documents related to all your sources of income, listing of all real estate investments, listing of all investments in stocks and/or bonds, listing of the balances due to any creditor or for any credit account owed.

3. Determine the first mortgage loan amount you can afford. You can do this by registering with a homebuyer training organization OR visiting a participating lender (see a list of homebuyer training organizations and participating lenders at http://www.financeauthority.org/). OR, you can complete a pre-application at our website http://www.financeauthority.org/ and a home counselor will call you.

4. Register with a participating homebuyer training organization certified by the Louisiana home-buyer Training Collaborative, Inc. and take the required 12-hour homebuyer education and training course. See our website for a list.

5. Complete a loan application with a participating lender. Please bring all documents gathered in step two to the participating lender.

6. Negotiate an Agreement to Purchase a home with the seller of a home in a Housing Opportunity Zone OR with New Orleans Redevelopment Authority (NORA) OR with a seller within Orleans Parish who can demonstrate $5200 of Hurricane Katrina/Rita damage. You should seek the assistance of a realtor in negotiating the agreement to purchase.

7. Close on your new home loan.

8. MOVE INTO YOUR NEW HOME!

To learn more about the Pathway to Homeownership Soft-Second Mortgage Loan Program, call (504) 524-5533 local or (877) 524-5533 toll-free

VISIT US AT http://www.financeauthority.org/

This home mortgage loan program is made possible by Louisiana Recovery Authority, State Office of Community Development, City of New Orleans & The Finance Authority of New Orleans. The Finance Authority does not discriminate on the basis of age, sex, religion, national origin, physical handicap, political or union affliation. No person, solely on the basis of any of the above factors, shall be excluded from participation in, be denied the benefits of, or otherwise be subjected to discrimination under the loan program operated by The Finance Authority of New Orleans. Effective Date: February 18, 2009

$65,000 Soft Second Mortgage Offered to First Time Homebuyers in Orleans Parish

Blogging From The Desk of:
Alicia Lagarde-Craig

The ‘Pathway to Homeownership’ Soft-Second Mortgage Loan Program offers soft-second home mortgage loans through participating lenders up to $65,000 at 0% interest with payments on the loan deferred until sale or refinance. In addition, the program offers up to $10,000 closing cost assistance when buying a home that will be your principal residence. The actual amount of the soft-second loan and closing cost grant received will be determined by need and annual household income, since the goal of this loan program is to cover the ‘gap’ between the highest affordable first mortgage loan for which you qualify and the purchase price or value of the home. The minimum amount of the first mortgage loan must be equal to at least 50% of the lesser of the purchase price of the home or the appraised value.

ALL BORROWERS OF A ‘PATHWAY TO HOMEOWNERSHIP’ SOFT-SECOND MORTGAGE LOAN MUST COMMIT TO REMAIN AN OWNER-OCCUPANT AT THE FINANCED HOME FOR AT LEAST THREE (3) YEARS. THOSE BORROWERS WHO DEMONSTRATE CONTINUAL OCCUPANCY FOR FIVE (5) YEARS WILL RECEIVE LOAN FORGIVENESS EQUAL TO 25% ON THE BALANCE OF THEIR ‘PATHWAY TO HOMEOWNERSHIP’ SOFT-SECOND MORTGAGE LOAN. AND AN ADDITIONAL 15% FOR EACH YEAR THEREAFTER FOR WHICH BORROWER DEMONSTRATES OWNER-OCCUPANCY.

The ‘Pathway to Homeownership’ Soft-Second Mortgage Loan Program does not discriminate on the grounds of race, sex, religion, age, disability or national origin.

To learn more about the ‘Pathway to Homeownership’ Soft-Second Mortgage Loan Program contact Alicia Lagarde Craig at (504) 382-3724 or Jeff Craig at (504) 352-6190. This is a great opportunity to get into your dream home and have an affordable monthly note.

Please email questions or comments to AliciaLagarde@kw.com