HomeStart Ready

 Program Requirements 

1. Available stateside in all Louisiana Parishes
2. First time homebuyers are not required. Repeat homebuyers are eligible.
3. Maximum Income is $99,000 in qualifying borrower income
4. Minimum Credit Score is 640 for all borrowers
5. Property must be the borrower’s primary residence.
6. Eligible properties include one- or two-unit primary residence, townhomes, and eligible condominiums. Ineligible properties include are three- or four- unit properties, manufactured or mobile homes, vacation or second homes, recreational properties, and timeshares.
7. Homebuyer Education Course is required for first-time homebuyers; they must meet applicable agency and program requirements.
8. Maximum DTI is lesser than 50% or the maximum approved by DU/LPA
9. Eligible uses include down payment, closing costs, prepaid items, and other eligible transactions costs.
10. Maximum LTV/CLTV is up to 97% LTV and 105% CLTV, subject to applicable agency guidelines.
11. Maximum purchase price may not exceed the applicable conforming loan limit
12. For the underwriting portion, DU Approve/Eligible or LPA Accept/Eligible required; manual underwriting and nontraditional credit are not permitted.
13. Assumptions are not permitted.
14. For flood insurance, please follow the agency and GSE guidelines.

 Assistance Terms and Finances 

i.    First Mortgage is Fannie Mae HFA Preferred or Freddie Mac HFA Advantage.
ii.    Loan Term is a 30-year fixed-rate mortgage
iii.    Assistance of 0%, 3%, or 4% of the final first mortgage amount, based on the selected interest rate. 
iv.    Assistance terms will include 0% interest, forgivable second mortgage; forgiven monthly at 1/36 over three years of continued owner occupancy.