Good news for aspiring homeowners: New Orleans has relaunched its soft second mortgage program. If you’re a first-time homebuyer with low to moderate income, this is free money that you can put toward purchasing a house.
To qualify, you have to earn less than 80 percent of the area median income. That’s $36,750 for a single-person household and $65,600 for a four-person household—see where you fall on this chart to find out if you qualify. Next, you must complete home ownership training by an approved agency. Finally, you must qualify for a mortgage from one of these lenders.
If you meet all these requirements, you could receive up to $35,000 in soft second funds and up to $5,000 in closing cost assistance. A soft second mortgage doesn’t accumulate interest and doesn’t have to repaid as long as you live in your house for a certain amount of time—in this case, 10 years.
“The soft second mortgage program is just one of the tools being used to combat the affordable housing crisis,” said direct of the office of community development Marjorianna Willman in a statement. “The Cantrell administration recognizes the many benefits of home ownership for the people of New Orleans. Many just need just a little bit of assistance to make it across the threshold.”
The funding comes from a $3 million Community Development Block Grant fund, but when that money is gone, it’s gone. So definitely take advantage of this opportunity while you can.
For more information, contact Taymia Muse at (504) 658-4243, Lindsay Smith at (504) 658-4244, or Tonya Bernard at (504) 658-4245.