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First-Time Homebuyers Programs

The state offers three types of government-subsidized mortgage programs for low-to-moderate income, first-time homebuyers located in the 13 storm-impacted parishes: the First-Time Homebuyers Program, the Soft Seconds Homebuyers Program, and the Long Term Community Recovery Homeowners Program.

If the purchaser stays in the house for 10 years and makes all the mortgage payments, the loan is completely forgiven. These programs are designed to make an investment in the community that lasts over time and provides tangible returns, such as blight removal and neighborhood stabilization.

First-Time Homebuyers ProgramThe home must be a single family or duplex, owner-occupied property. The program is administered by two state agencies: the Finance Authority of New Orleans and the Louisiana Housing Finance Agency. FANO administers $31.1 million in CDBG funds to homebuyers in Orleans and St. Bernard parishes, helping them pay for “soft” costs such as down payments, closing costs and mortgage financing. LHFA administers $8.9 million in CDBG funds to homebuyers in the remaining 11 parishes, blending the funds with bond sales to buy-down interest rates on loans that help owners pay for “soft” costs as well.

Soft Second Homebuyers Program

The Soft Second Homebuyers Program provides assistance to individuals with low-to-moderate incomes who are purchasing their first home in one of the 13 hurricane-impacted parishes. Administered by agencies such as LHFA and FANO, this program promotes neighborhood revitalization in critical areas throughout the Louisiana Gulf Coast by partnering with local officials eager to clear blight.

Here’s how it works: The Louisiana Land Trust demolishes properties that have been bought out through the state's Road Home program. Local governments select some of these properties for redevelopment, and residents apply for CDBG funds that provide loan assistance for reconstructing a new home on the cleared LLT properties. This program provides both “soft” second financing and “hard” construction costs to assist first-time homebuyers.

Long Term Community Recovery Homeowners Program

The Long Term Community Recovery Homeowners Program provides assistance to individuals with low-to-moderate incomes living in the city of New Orleans who are purchasing their first home or rehabilitating their current homes. The Finance Authority of New Orleans will administer $7 million in CDBG funding as “soft second” loans for these first-time homebuyers, helping with costs such as down payments, closing costs and mortgage financing.