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Soft Second Program

LHC’s Commitment

In keeping with its mission to ensure that every Louisiana resident is granted an opportunity to obtain safe, affordable, energy-efficient housing, the LHC offers the Soft Second program is designed to cover the affordability gap between the maximum amount that a homebuyer can afford and the purchase price of the home. 

Read on to find out if this program is right for your prospective borrower.

 

Program Details

A first-time homebuyer is an individual who meets any one of the following criteria:

  • An individual who has had no ownership in a principal residence during the 3-year period
  • ending on the date of purchase of the property. This includes a spouse (if either meets the above test, they are considered first-time homebuyers).
  • A single parent who has only owned with a former spouse while married.
  • An individual who is a displaced homemaker and has only owned with a spouse.

This program is specifically designed for individuals with an annual household income at or below 80% of the Area Median Income (AMI).


Program Benefits

  • A Soft Second Loan of 20% of the purchase price up to $30,000.
  • Up to $5,000 for Closing Costs for a total of up to $35,000.

Terms of the Soft Second Loan

Repayment of the principal amount of the soft second loan shall be deferred until the loan is extinguished upon sale or refinance.

  • 0-36 months, 100% repayment is required
  • after 36 months, 80% repayment is required
  • after 48 months, 60% repayment is required
  • after 60 months, $0 will be due

In other words, if the homebuyer occupies the home for the full five year term, then the soft second loan will be forgiven.


Included Parishes

There are income and purchase price limitations and the program is limited to Gustav/Ike and Isaac designated parishes:

Acadia, Allen, Ascension, Assumption, Avoyelles, Beauregard, Calcasieu, Cameron, Catahoula, Concordia, East Baton Rouge, East Carroll, East Feliciana, Evangeline, Franklin, Grant, Iberia, Iberville, Jefferson Davis, Jefferson, LaSalle, Lafayette, Lafourche, Livingston, Madison, Morehouse, Orleans, Ouachita, Plaquemines, Pointe Coupee, Rapides, Richland, Sabine, St. Bernard, St. Charles, St. Helena, St. James, St. John the Baptist, St. Landry, St. Martin, St. Mary, St. Tammany, Tangipahoa, Tensas, Terrebonne, Union, Vermilion, Vernon, Washington, West Baton Rouge, West Carroll, West Feliciana, and Winn.

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