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 whose income does not exceed program limits are eligible for up to 4% of the loan amount toward 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.]

Visit The Finance Authority of New Orleans website to learn about the program at www.financeauthority.org.

Gather your financial information:

1. Tax returns and W-2s for the last three consecutive years
2. Bank statements for the last three months
3. Pay-stubs for the last three months and financial documents related to all your sources of income:
• listing of all real estate investments,
• listing of all investments in stocks and/or bonds,
• copy of court ordered child support judgement(s), where applicable
• SSI, DHAP, Retirement income verification documents, where applicable
• Evidence of other income, where applicable

Determine the first mortgage loan amount you can afford. You can do this by:

• Registering with a homebuyer training organization, or
• Visiting a participating lender (see a list of homebuyer training organizations and participating lenders).

Register with a participating homebuyer training organization certified by the Louisiana Homebuyer Training Collaborative, Inc. and take the required 12-hour homebuyer education and training course.

Complete a loan application with a participating lender. Please bring all documents gathered in step two to the participating lender.

Negotiate an agreement to purchase a home with the seller of a home. You should seek the assistance of a realtor in negotiating the agreement to purchase.

Get approved for the 1st mortgage. The lender will review your application and financial documents to determine the first mortgage amount. Once the lender has a completed gathering your financial information your file will be forwarded to The Finance Authority for review and compliance.

Close on your home loan.

MOVE INTO YOUR NEW HOME!