The Bond Loan Program
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.
Who can use this money?
Virtually anyone.
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.
Where can I buy a home?
Anywhere in Orleans Parish.
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.]
