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).
Properties cannot be located in a flood zone.
- A Soft Second Loan of 20% of the purchase price up to $55,000.
- Up to $5,000 for Closing Costs for a total of up to $60,000.
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.
In other words, if the homebuyer occupies the home for the full ten year term, then the soft second loan will be forgiven.
There are income and purchase price limitations and the program is limited to the fifty-one 2016 Great Flood designated parishes:
Acadia, Allen, Ascension, Avoyelles, Beauregard, Bienville, Bossier, Caddo, Calcasieu, Caldwell, Catahoula, Claiborne, De Soto, East Carroll, East Baton Rouge, East Feliciana, Evangeline, Franklin, Grant, Iberia, Iberville, Jackson, Jefferson Davis, Lafayette, LaSalle, Lincoln, Livingston, Madison, Morehouse, Natchitoches, Ouachita, Pointe Coupee, Rapides, Red River, Richland, Sabine, St. Helena, St. James, St. Landry, St. Martin, St. Tammany, Tangipahoa, Union, Vermilion, Vernon, Washington, Webster, West Baton Rouge, West Carroll, West Feliciana and Winn Parish