FREQUENTLY ASKED QUESTIONS:

Q: Will my monthly mortgage payment remain the same throughout the duration of the Welcome Back Home Loan?
A: Yes.



Q: Can I use the lower-interest rate Welcome Back Home Loan Program to refinance the existing loans on my present home?
A: The Welcome Back Home Loan Program can be used to refinance the existing loans on your home only if you are also making qualified renovations. A ‘qualified’ renovation means an amount of renovations that exceed 25% of the price of the home at the time you first purchased it. In addition, the term ‘qualified’ means no more than 25% of the external walls can be removed and no more than 75% of the internal walls can be removed. The term ‘walls’ mean the studs or skeletal structure of the walls and not the sheetrock or plaster. Congress created these provision in order to eliminate refinancing of an existing mortgage for what is essentially new construction. Therefore, refinancing the first mortgage is allowed in connection with a qualified renovation.

Q: If I decide to sell my home before the Welcome Back Home Loan is paid off, will I have to pay any penalty?
A: None at all.

Q: Can I purchase a condo with the Welcome Back Home Loan Program?
A: Yes.

Q: Can I get a Welcome Back Home Loan if I have received the state’s Road Home recovery award or any other assistance from FEMA or the Red Cross?
A: Yes.

Q: Can I use the Welcome Back Home Loan to purchase another home?
A: Yes, provided that the home being financed with the Welcome Back Home Loan will be your principal residence. You cannot use Welcome Back Home Loan Program to finance the purchase or renovation of rental or other investment property.

Q: How long do I have to live in my home to avoid any penalties from the Internal Revenue Service?
A: All single family mortgage revenue bond programs, like the Welcome Back Home Loan Program, provide below market interest rates by selling tax-exempt bonds. One of the rules established by Congress is that the single-family bond programs are to be used to facilitate homeownership. Therefore the Internal Revenue Code requires that you must demonstrate your intent to use the home as your principal residence. While there is no time limitation to live in your home financed with bond proceeds, you may be audited by the IRS to determine whether you made the home your principal residence.

Q: Is my credit score taken into consideration when applying for the Welcome Back Home Loan Program?
A: Yes. Your credit score is the standard device to measure credit worthiness for home mortgage loans. Elements of credit worthiness include how well you pay your bills on time, how much debt are you carrying in relation to your monthly income, and how much house you are trying to buy in relation to your monthly income. While you do not have to have perfect credit to qualify for the Welcome Back Home Loan, you must demonstrate an ability to make monthly mortgage payments on time.

Q: If I filed bankruptcy before or after Hurricane Katrina, can I still qualify for the Welcome Back Home Loan Program?
A: Some people believe that bankruptcy will forever disqualify you from making a mortgage loan. That belief is untrue. All lenders will allow a person time to rebuild their credit worthiness, even after bankruptcy. Now it may take two years of paying your bills on time after you were discharged by the judge in bankruptcy, but two years is not a long time, if you have the dream of homeownership.

To learn more about the Welcome Back Home Loan Program click here

For more information on any of our programs, please call
(504) 524-5533.