The City of New Orleans is working hard to get home buyers to purchase in Orleans Parish.  Below you can find infor from the finance authority websites of New Orleans, outlining the details of the program.

The Finance Authority of New Orleans is a quasi-governmental agency created to help citizens get low interest mortgage loans to purchase homes in Orleans Parish. Our low interest mortgage loan programs serve both first time homebuyers and non-first time homebuyers of all family income levels.

Our Bond Loan Program offers low interest rates of 3.50% for FHA/VA loans and 3.75% for conventional loans WITH a down payment or closing cost assistance or 3.25% for FHA/VA loans and 3.50% for conventional loans WITHOUT a down payment or closing cost assistance. The bond loan is a first mortgage loan product that can fully finance the purchase of your new home.

ALL Borrower(s), except those qualified for the City of New Orleans Soft Second Program, will be required to contribute at least 5% of the purchase price toward down payment and/or closing costs from their own funds. These funds cannot be gifted to the borrower. Click here  for more information on combining The City of New Orleans Soft Second Program with our Bond Loan Program.We realize how difficult it may be for New Orleans renters to save the down payment required to buy a home. That’s why we’re also offering first time homebuyers 4% of your mortgage loan amount in down payment or closing cost assistance.

The Bond Loan Program is a low interest rate first mortgage loan offered with or without closing cost assistance to the mortgagor. Bond loans may be made to both first time AND non-first time homebuyers.

PROGRAM DETAILS

What is it?

The Bond Loan Program is a low interest rate first mortgage loan offered with or without closing cost assistance to the mortgagor. Bond loans may be made to both first time AND non-first time homebuyers.

First Time Home Buyers are eligible for up to 4% of the loan amount toward down payment or closing cost assistance grant. First Time Home Buyers whose income exceeds program limits are NOT eligible for down payment or closing cost assistance grant.

Non-First Time Home Buyers are not eligible for down payment or closing cost assistance grant.

Where do I apply for this program?
Interested persons should apply with a participating lender below.

Who can use this money?
First-Time and Non-First-Time homebuyers of any income.

If I use this program to purchase a new home, may I rent my old home? 
Yes. Non-first time homebuyers are allowed to keep their old home, however, the new home must be the principal residence of the borrower(s).

Who is a First-Time Homebuyer?
A first-time homebuyer is a person(s) 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.

May I use this mortgage loan program with the City of New Orleans Soft Second Mortgage Program?
Yes, only if you are a first-time homebuyer. When applying for your loan at one of our participating lenders, please inform the mortgage originator that you would like to use both programs: the Finance Authority’s Low Interest 1st Mortgage Loan and the City of New Orleans’ Soft Second Mortgage Program. For more information about the City of New Orleans’ Soft Second Mortgage Program please visit www.nola.gov/softseconds.

Where can I buy a home?
Anywhere in Orleans Parish.  City of New Orleans Soft Second Bond Loan participants should consult program guidelines at www.nola.gov/softseconds

Can I sell my home at any time?

Yes. Your loan will be paid off from the proceeds of the sale. There may be a recapture tax owed if the sale occurs within 9 years of your purchase. The tax is on a percentage of any gain you earned on the sale, since you were the beneficiary of low interest federal tax-exempt bond funds to finance your home. [See section 143(m) of the IRC or talk to a tax preparer.]

Do I have to pay the closing cost assistance or down payment assistance back?

Maybe. Down payment and/or closing cost assistance is limited to first-time homebuyers and is awarded as a forgivable soft second loan with no principal or interest payments. The loan is forgivable at 1/60 per month over the first 60 months until fully forgiven. If you decide to sell the home within the first 60 months, any portion of the loan which has not been forgiven by the date of closing will be paid back.

 

PURCHASE PRICE LIMITS


*All information is based on information provided by the Finance Authority of New Orleans (www.financeauthority.org)

 

 

PARTICIPATING LENDERS

Gulf Coast Bank & Trust
Cheryl Vanderbrook cherylvanderbrook@gulfbank.com 504-841-2011
Christie Powers christiepowers@gulfbank.com 504-841-2858
Dana Blondiau danablondiau@gulfbank.com 504-599-5742
Geoffrey Smith geoffreysmith@gulfbank.com 504-539-7282
Joe Uzee joeuzee@gulfbank.com 504-841-2896
Marcia Leone marcialeone@gulfbank.com 504-556-4232
Sara Fernandez sarafernandez@gulfbank.com 504-599-5747
Scott Lagarde scottlagarde@gulfbank.com 504-599-5733
Shawn Rogers shawnrogers@gulfbank.com 504-599-5746
Connye Bauer connyebauer@gulfbank.com 504-556-4219
     
Iberia Bank
Carrie Curet ccuret@iberiabank.com 337-359-1575
800-264-7814
Patty Battard patty.battard@iberiabankmortgage.com 504-310-7406
Ted Nusenow ted.nusenow@iberiabankmortgage.com 504-310-7472
Ronaele Cunningham Ronaele.cunningham@iberiabankmortgage.com 504-310-3077
Connie Fernandez connie.ferandez@iberiabankmortgage.com 504-310-2873
Debbie Campo Debbie.campo@iberiabankmortgage.com 504-310-2858
     
Wells Fargo
Leonard Baudoin Leonard.baudoin@wellsfargo.com 504-830-3518
Tyrone Durand Tyrone.t.durant@wellsfargo.com 504-830-3533
Sims LeBlanc Sims.leblanc@wellsfargo.com 504-830-3514
Carmen Ramirez Carmen.a.ramirez@wellsfargo.com 504-830-3528
     
Whitney National Bank
Joyce Kinler jkinler@whitneybank.com 504-539-7853
Kevin Huskins khuskins@whitneybank.com 504-366-4883
Frank Moresco fmoresco@whitneybank.com 504-838-6450
Robert Tynes rtynes@whitneybank.com 504-838-6511
Paul Loria ploria@whitneybank.com 504-539-7866
Mindy Dinicola-Tassin mdinicola@whitneybank.com 504-619-4214