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.
The "Expand to Homeownership" Grant Program is designed to help New Orleans homebuyers with down payment and closing costs when purchasing a home. This program provides a Grant of up to 4% of the loan amount. All mortgages are fixed rate 30-year loans. Borrowers must occupy the home as their principal residence.
- No repayment is required for assistance received
- Servicing borrowers with incomes up to $84,000 for FHA/VA and $99,000 for conventional
- Applicants must have a minimum credit score of 640 and a total debt load that does not exceed 45% of monthly income
- Maximum mortgage loan: $271,050 for FHA, $417,000 for VA or Conventional
- Must qualify for a mortgage loan with a participating lender
- This program is not limited to "first-time homebuyers"
- First-time buyers must complete 12-hour Homebuyer Education Class
How it Works: If your loan amount is $150,000
OPTION 1 offers a 4% GRANT $150,000 x 4% = $6,000
OPTION 2 offers a 3% GRANT $150,000 x 3% = $4,500
(OPTION 1 will carry a higher mortgage interest rate than OPTION 2)