Green Mortgage - New Down Payment Assistance Program Overview

Finance New Orleans NEW Homebuyer Assistance Program

WHAT IS IT?

Finance New Orleans’ new Green Mortgage Program is here to help you access homeownership. Our updated program offers four benefits to qualifying buyers:

1. First Mortgage: FHA, VA, Fannie Mae, or Freddie Mac 30-year mortgage to finance the purchase of a home

2. 0% Interest Second Mortgage: Up to $25,000 for down payment assistance or closing cost assistance

Buyers < 80% AMI – 0% Interest, 5-Year forgivable loan

Buyers 81-140% AMI – 0% Interest, 30-Year non-forgivable loan with option to defer repayment

3. Energy Efficiency Whole Home Assessment with Energy Smart: Free energy efficiency assessment and minor upgrades to reduce energy use and costs for homeowners

4. $2,500 Green Home Improvement Stipend: Stipend to implement home improvements increasing energy efficiency and resilience to wind, heavy rain, and flooding.

Eligibility Qualifications & Terms

Who:

Individuals or Co-Applicants
Combined Income under 140% AMI
- - Find out income thresholds using this tool!
Credit score above 640 (higher credit score may be required for purchase of a small-multifamily property)
Total debt load less than 45% of income

Where / what:

Orleans Parish
1 to 4 unit primary residence (contingent on 1st mortgage product)
Move-in ready home

Other program requirements:

Financial fitness courses are strongly encouraged for all interested Green Mortgage buyers!
Earn Homebuyer Education Class Certificate
Qualify for first mortgage with participating lender
Schedule a home energy efficiency assessment with Energy Smart prior to closing
Remain in the home as primary residence until homebuyer assistance is repaid in full or forgiven (depending on income 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
Loan Limits	$356,362 (single) $456,276 (duplex) $551,500 (triplex) $685,400 (four-plex)	See Freddie Mac guidelines for your specific loan limits.	See Fannie Mae guidelines for your specific loan limits.	$548,250 See VA guidelines for your specific loan limits.
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.