FOR THE PURCHASER
USING THE WELCOME BACK HOME LOAN PROGRAM
TO PURCHASE, RENOVATE AND/OR REBUILD

The following explanation by steps will help you to determine how much you can borrow to purchase and renovate your new home based on the Welcome Back Home Loan Internal Revenue Code requirements. After you determine your potential loan amount, then you must check with our participating lenders to see which of the FHA/VA, Fannie Mae or Freddie Mac loan programs best fit your situation. Participating Lenders

The first step to find out how much you may be able to borrow is to determine which loan pool of the Welcome Back Home Loan Program you qualify for. While the Welcome Back Home Loan Program is designed to help families in all income categories, two-thirds of this $25,000,000 mortgage loan program is targeted for families of 3 or more with annual incomes of $73,220 and families of 2 or less with annual incomes of $62,760. The remaining one-third of this program has no income limitations. Each participating lender in the Welcome Back Home Loan Program is therefore required to originate $2 of its total loan allocation to the families within the target family incomes stated above for every $1 of loan proceeds made to a higher income borrower. While the higher income borrower may realize an inconvenient delay, especially in the initial phases of the Welcome Back Home Loan Program, the process guarantees that the families of the targeted incomes are served first.

The second step to find out how much the Welcome Back Home Loan Program will allow you to borrow is to determine whether your purchase price of your new home does not exceed the following purchase price limits:

You may also borrow additional loan proceeds above the purchase price limits to renovate or rehabilitate. To determine how much more you can borrow to renovate in connection with your purchase, go to the third step.

If you are purchasing land to build a totally new home, the total price of the land plus the cost of newly constructed home cannot exceed the above listed purchase price limits.

The third step to find out how much you may be able to borrow to renovate in connection with your purchase of the home is to determine how much you will need to renovate. If you are using The Welcome Back Home Loan Program to purchase a home that needs renovation, The Welcome Back Home Loan Program may also make available up to $150,000 in additional loan funds to renovate.

This explanation of how to use the The Welcome Back Home Loan Program by steps will help you determine how much you can borrow to purchase, renovate, purchase/renovate and even rebuild based on the The Welcome Back Home Loan Internal Revenue Code requirements. After you determine your potential loan amount, then you must check with our participating lenders to see which of the FHA/VA, Fannie Mae or Freddie Mac loan programs best fit your situation. The Welcome Back Home Loan Program funds will then be applied to the FHA/VA or conventional loan program that you qualify for.

Participating Lenders

Examples

I am looking at a couple of homes that I like in the 7th and 8th Wards with a purchase price of about $85,000 but will need about $40,000 of renovation. Can the Welcome Back Home Low-Interest Loan Program help me?

Yes it can, provided that you have sufficient income and credit reliability to qualify for an FHA/VA or conventional loan program and you intend to make the property your family home.

I like Eastover and Lakeview but the purchase price of the homes are around $275,000 and I will need $100,000 of renovation. Can the Welcome Back Home Low-Interest Loan Program help me?

Yes it can, provided that you have sufficient income and credit reliability to qualify for a conventional loan and you intend to make the property your family home. You will have to also determine which of our participating lenders have satisfied their targeted loan pool and therefore have available funds in their unrestricted income loan pool. Please review the first step to see which loan pool you qualify for and the second step to determine the maximum purchase price.

I am looking at some shotgun doubles in Gentilly and Central City. I intend to live on one side and rent out the other side. The purchase price of these properties run from $95,000 to $125,000 and they will need between $25,000 and $50,000 of renovation. Can the Welcome Back Home Low-Interest Loan Program help me?

Yes it can, provided that you have sufficient income and credit reliability to qualify for an FHA/VA or conventional loan program and you intend to make the property your family home. Please review the first step to see which loan pool you qualify for and the second step to determine the maximum purchase price.

I want to buy and renovate a home in Algiers that was not damaged by Hurricane Katrina. Can the Welcome Back Home Low-Interest Loan Program help me?

Yes it can, provided that you have sufficient income and credit reliability to qualify for an FHA/VA or conventional loan program and you intend to make the property your family home. The Welcome Back Home Loan Program is not limited to houses damaged by Hurricane Katrina, but it is limited to homes in Orleans Parish. Please review the first step to see which loan pool you qualify for and the second step to determine the maximum purchase price.

I want a condo in the warehouse district or the St. Charles/Oretha C. Haley corridor. Can the Welcome Back Home Low-Interest Loan Program help me?

Yes it can, provided that you have sufficient income and credit reliability to qualify for an FHA/VA or conventional loan program and you intend to make the property your family home. Please review the first step to see which loan pool you qualify for and the second step to determine the maximum purchase price.

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