Pathway to Homeownership
Soft-Second Mortgage Loan Program

The Finance Authority of New Orleans in cooperation with the Louisiana Recovery Authority, the State Office of Community Development and the City of New Orleans presents its Pathway to Homeownership Soft-Second Mortgage Loan Program. This post-Katrina housing assistance program is designed to help New Orleans recover and prosper. Three programs have been designed to accomplish this goal. One program currently available, The First Time Homebuyer Fund, will help homebuyers purchase a home primarily in the Housing Opportunity Zones in Orleans Parish. The Housing Opportunity Zones were created in response to the two year citizen driven United New Orleans Plan (UNOP) for recovery and redevelopment of New Orleans.

No monthly payment on soft-second mortgage loan

The Pathway to Homeownership Soft-Second Mortgage Loan Program offers soft-second home mortgage loans through participating lenders up to $65,000 at 0% interest with payments on the loan deferred until sale or refinance. In addition, the program offers up to $10,000 closing cost assistance when buying a home that will be your principal residence. The actual amount of the soft-second loan and closing cost grant received will be determined by need and annual household income, since the goal of this loan program is to cover the "gap" between the highest affordable first mortgage loan for which you qualify and the purchase price or value of the home. The minimum amount of the first mortgage loan must be equal to at least 50% of the lesser of the purchase price of the home or the appraised value, whichever is less.

100% forgivable over 10 years

All borrowers of a Pathway to Homeownership Soft-Second Mortgage Loan must commit to remain an owner-occupant at the financed home for at least three years.

Borrowers who demonstrate continuous owner-occupancy will receive LOAN FORGIVENESS. Loan forgiveness equal to 25% of the soft second mortgage loan will be awarded after five years. Each year, after the 5th year, an additional 15% of the soft second mortgage loan will be forgiven. 100% forgiveness of the soft second mortgage loan will be achieved after ten years of demonstrated continuous owner-occupancy.

To learn more about the First Time Homebuyer Fund click here.

For more information please call (504) 524-5533 local or (877) 524-5533 toll free.