(504) 524-5533

Program Overview

 

First mortgage and down payment assistance for 1-4 unit homes

Buying a home is a daunting process, and FNO knows that securing a mortgage and supplying a down payment on a home is a huge obstacle to overcome. That’s why we’re here to help you own your piece of New Orleans by providing a first mortgage paired with down payment assistance options to suit your needs.

Whether you’re a first-time homebuyer or an experienced homeowner looking to buy a new home, a first mortgage and down payment relief are never far away.

Program Benefits

  • Save money that will help you qualify for the first mortgage.
  • Keep savings that can be used for other household needs, like purchasing appliances or buying furniture.
  • Start with more equity in the home.

 

 


Down Payment Assistance

WHAT IS IT?

This product is a 30-year VA, FHA, Fannie Mae or Freddie Mac first mortgage with a zero-interest, forgivable second mortgage (equaling 2-5% of your approved home loan) to help with your down payment.

 

HOW DOES IT WORK?

Once you qualify for a first mortgage, you’ll receive a sum of money that will be forgiven, but you must remain in the home for at least 3 years.

 

 


Eligibility & Terms

 

Qualifications

Who:

  • Individuals or families 
  • Household income below $99,000
  • Credit score above 660
  • Total debt load less than 45% of income
  • Earn Homebuyer Education Class Certificate
  • Qualify for first mortgage with participating lender

 

Where / what:

  • Orleans Parish
  • 1 to 4 unit primary residence
  • Move-in ready home

 

Program Terms

Review the choices below to determine the best first mortgage and down payment assistance option that suits your needs and eligibility.

  • Step 1
  • First Mortgage Options

  • Select one Mortgage Option

FHA FREDDIE MAC FANNIE MAE VA
Loan Terms 30 Years 30 years 30 years 30 years
Total Debt-to-Income Less than 45%, or 50% with 680+ credit score Less than 45%, or 50% with 680+ credit score Less than 45%, or 50% with 680+ credit score Less than 45%, or 50% with 680+ credit score
Maximum Units 2 1 4 2
Max Income $99,000 Follow Fannie Mae guidelines for your family situation No limit
Minimum Credit Score 660 660 660 660
Parish Eligibility Orleans Orleans Orleans Orleans
Homebuyer Education & Training First Time Homebuyers & Landlord Training First Time Homebuyers only First Time Homebuyers & Landlord Training First Time Homebuyers & Landlord Training
  • Step 2
  • Down Payment Assistance

DOWN PAYMENT
Assistance % 2-5% (of First Mortgage Amount)
Interest Rate None
Repayment Terms Must remain in home for 3 years
Forgivable Yes

All properties must be move-in ready.
Borrower can only select one 1st mortgage option.
Follow FHA Maximum loan limits for maximum loan amounts. VA first loan limits also apply.

 

 


Resources & FAQs

 

Participating Lenders

In order to qualify for the program benefits, homebuyers are required to apply for a mortgage at any one of our participating lenders.

DOWNLOAD THE LIST OF APPROVED PARTICIPATING LENDERS
Updated: 01/29/2020

Program FAQs

What is The Green Mortgage Program?
The Green Mortgages Program offers a first mortgage down payment assistance to qualified buyers who want to own a home in New Orleans. Homebuyers can choose the down payment assistance in the form of a forgivable loan at 2-5% of the first mortgage. If you receive the forgivable loan, you must remain in the house for 3 years for the second mortgage to be fully forgiven.

 

How do I apply?
FNO’s mortgages are originated through our Participating Lenders. If you have a banking relationship with one of these lenders, you may choose to work with them or select another from our list. The lender will be able to guide you on the financial documentation you need to provide and the type of loan product that you would qualify for. If you are a first-time homebuyer, you must also complete a homebuyer education and training course.  The course may be taken on-line or in-person in conjunction with eHome America and the Participating Training Organizations.

 

What is the minimum required credit score?
The minimum required score is 660 for FHA, Fannie Mae, Freddie Mac, and VA loans.

 

What are the income requirements?
The income limit is $99,000 regardless of household size for FHA and VA. Income limits for Fannie Mae are family specific.

 

What kind of home can I use the down payment assistance to purchase?
The home must be used as your primary residence but the type of home varies based on the loan product you choose. You may purchase a 1 to 4 units (detached or attached), condos or townhomes under the FHA and VA loan products. However, you may only purchase a 1-unit home under Freddie Mac’s loan product. Manufactured housing, mobile, recreational, seasonal or other types of vacation or non-permanent homes are not permitted.

 

Can I buy a fixer-upper?
Only homes that are move-in ready are eligible for financing in The Green Mortgages Program.

 

Can I buy a double and rent out one side of the home?
Yes. If you choose a FHA or VA loan, you may purchase a double as long as you live in one side as your primary residence. Fannie Mae loans allow the purchase of homes up to four units as long as you reside in one unit as your primary residence.

 

Do I have to be a first-time homebuyer?
You do not have to be a first-time homebuyer. However, for the Freddie Mac loan product, you cannot own other property at the time of closing.

 

Do I have to complete homebuyer training?
If you are a first-time homebuyer, you must complete homebuyer training. The course may be taken on-line through eHome America in conjunction with the Participating Homebuyer Training Organizations or in-person at one of their local classes. The course must be completed prior to loan closing.

 

What are the terms of the 1st mortgage?
The first mortgage is a 30-year, fixed rate, amortizing loan with 360 level monthly payments. The interest rate is subject to current market conditions and changes daily. Follow FHA Maximum loan limits for maximum loan amounts. VA first loan limits also apply.

 

What are the terms of the down payment assistance?
Down payment assistance is offered as a 3-year deferred loan that is forgiven at the rate of 1/3 per year provided that the borrower is not in default and resides in the home as their primary residence for the duration of the 3-year period.

 

How may I use funds from the down payment assistance?
The proceeds may be used for down payment, closing costs, prepaid, upfront private mortgage insurance and other related program and mortgage loan fees and expenses. The second mortgage proceeds may not be used to pay off debt.

*All of these questions are subject to current guidelines.

We're Here To Help.

To receive additional information about our programs, please fill out the form with your contact information, and we will send you an email with program details.
For general questions and inquiries, visit our Contact page.

For questions, please call:
(504) 524-5533

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