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For Immediate Release

The Finance Authority of New Orleans Announces Housing Program Income Limit Increase
NEW INCOME LIMITS TO INCREASE NUMBER OF ELIGIBLE HOMEBUYERS


Income maximums recently increased to 120% of area median income, extending eligibility to a great majority of city's workforce
New Orleans, La - Today, The Finance Authority of New Orleans, in cooperation with Louisiana Recovery Authority, the State Office of Community Development and the City of New Orleans, formally announced increased income eligibility limits for its $27 million /Pathway to Homeownership Soft Second Mortgage Loan Program/. This mortgage loan program offers up to $65,000 in a 10 year forgivable soft second mortgage loan at 0 percent interest and up to $10,000 in closing cost assistance grants.

The State of Louisiana recently authorized raising household income eligibility limits from 80% to 120% of the metropolitan area median income (AMI). New limits are as follows:

One Person - $50,280
Two Persons - $57,360
Three Persons - $64,560
Four Persons - $71,760
Five Persons - $77,520
Six Persons - $83,280
Seven Persons - $89,040
Eight Persons - $94,680

"In my thirty years in housing, I've never heard of $75,000 in homebuyer assistance," said The Finance Authority of New Orleans Executive Director, Mtumishi St. Julien. "It's the best housing program in the country right now. The recent state-approved increase from 80% AMI to 120% AMI extends eligibility to probably 75 to 80 percent of the New Orleans workforce. This is an opportunity homebuyers should grab with the greatest enthusiasm," St. Julien added.

The Pathway to Homeownership Soft Second Mortgage Loan Program is designed to help the homebuyer bridge the affordability 'gap' between high home prices and stagnant wages. Loans are offered through participating lenders and eligibility amounts are determined by need and annual household income. Borrowers will be granted assistance based on the highest /affordable /first mortgage loan and the purchase price or value of the home. The minimum amount of the first mortgage loan must be equal to at least 50 percent of the lesser of the sales price or appraised value.

All borrowers must commit to remain an owner- occupant at the financed home for at least three years. Borrowers who demonstrate continual occupancy for five years will receive loan forgiveness equal to 25 percent of the balance of their Pathway to Homeownership soft-second mortgage loan in the sixth year and 15 percent each successive year the borrower demonstrates owner-occupancy. Total loan forgiveness can be achieved in 10 years.

The Pathway to Homeownership Soft Second Mortgage Loan Program is limited to one or two unit residences valuing up to $370,884 primarily within one of the City's Housing Opportunity Zones (HOZs). A smaller pool of funds may be available on a limited basis for residential properties outside an HOZ, when the residence is part of the New Orleans Redevelopment Authority (NORA) re-development portfolio, or when the seller can demonstrate at least $5,200 of damages realized from Hurricanes Katrina and/or Rita.

Other eligibility requirements are: (1) the homebuyer must have not received payments from Road Home under the 'sell' or 'relocate' option; (2) must make a minimum personal investment of 1 percent of purchase price or $1,500, whichever is greater; and (3) must complete a 12-hour homebuyer education course; (4) purchased property must be within Orleans Parish.

Applicants are encouraged to visit The Finance Authority of New Orleans' website at www.financeauthority.org to explore eligibility criteria and fill out a pre-application or call (504) 524- 5533 and speak to staff members who may help with questions.

The Finance Authority of New Orleans is a public trust created by the City Council of New Orleans in 1978 under the provisions of the Louisiana Public Trust Code. Since 1978, The Finance Authority of New Orleans has issued more than $550 million in mortgage revenue bonds. Proceeds from these bond issues have been used to finance over 7,000 new homeowners in the City of New Orleans. In addition to financing home mortgages, The Finance Authority of New Orleans provides tax-exempt bond financing for public facilities, facilities owned by non-profits, multi- family housing and all forms of community & economic development. The Finance Authority programs are authorized by the New Orleans City Council.

For more information, visit www.financeauthority.org

Click here for more information . . .
To fill out the pre-application, CLICK HERE

Participating Lenders
Housing Opportunity Zones

The New Orleans Agenda.com



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