Overwhelmed by the many first time home buyer programs in New Orleans. Youth Rebuilding New Orleans is actively seeking first time home buyers in New Orleans. We have several properties that take advantage of the city’s soft second mortgage program! Candidates must be teachers to qualify for our homes; however, if you are not a teacher we can still help you. We have partnered with another non-profit to help maximize the impact we can have. Please read the information below or visit the city’s website. Please contact our organization if you or someone you may know could qualify for this program. Some applicants can qualify for up to $65,000 in forgivable loans.
Looking for your 1st Home
If you are looking to purchase a home, you may be able to take advantage of new financial incentives.
Want to live in NOLA?
A special program that recently launched provides incentives for home buyers in Orleans Parish.
Take Advantage of Grants
If you fall within 80%-120% of the Annual Median Income (AMI) range and you are a first time home buyer, you qualify!
From the City…
On October 27, 2011, Mayor Mitch Landrieu announced a $52.3 million soft second mortgage homebuyer assistance initiative to be run by the City’s Office of Community Development that will provide hundreds of New Orleans families an opportunity to become first-time homebuyers. The goal of the initiative is to strategically promote homeownership opportunities for low and moderate income residents and families who are buying their first homes. The city of New Orleans will provide affordable gap financing in the form of a “soft second” mortgage for two programs: the Direct Homebuyer Assistance Program and the Affordable Home Development Program.
The term “soft second” comes from the fact that the government is subsidizing money for potential homeowners through forgivable loans to purchase property and become first-time homebuyers. This subsidized loan bridges the affordability gap between the price of the home including closing costs and the maximum amount a homebuyer can borrow with a first mortgage loan. The homebuyer will receive only the amount of soft second funding that is needed to close the affordability gap which will be determined by need and annual household income. To be eligible for assistance, homebuyers must complete a pre-approved 12-hour homebuyer training course to prepare them to qualify for a mortgage and to become homeowners, sign a purchase contract for a home and obtain a commitment for a first mortgage.
First Time Home Buyer Programs In New Orleans FAQ
How do you apply?
A homebuyer must contact a participating lender, realtor, or housing counselor to start the process – eligible homebuyers will be referred to the city of New Orleans by lenders after first mortgage approval.
How do you qualify?
Households with income of up to 120% AMI ($73k family of four) should contact a homebuyer counseling agency and enroll in a homebuyer training course – there is a minimal application fee. This course will review eligibility, prepare households to select an appropriate house and assist them in applying for a mortgage. Once a household qualifies for a mortgage, the lender will refer the application to the City for a subsidy.
How is the subsidy amount determined?
The program is designed to provide only the difference between the cost of purchasing a home and the amount of loan a household can afford. The lenders will utilize the City’s program income guidelines to determine the maximum amount of loan a household can afford and issue a commitment and forward the application to the City.
Are there limits on purchase price?
There are no specific limits on purchase price but the program will not provide more than 50% of the purchase price for a home and the household must contribute the higher of 1% of the purchase price or $1500 – whichever is higher.
Where can I find more resources on first-time homebuyer programs?