What is a soft second mortgage
Soft Second Mortgage Program
21st Jan 2014 | by: Chris Smith
Many of my clients have asked me for information regarding the City of New Orleans’ Soft Second Program so I thought it would be helpful to blog about it. Below is the program overview and the link to the city’s site for more information. Give me a call! My team has worked with quite a few buyers through this program and we can help you too!
The Direct Homebuyer Assistance Program provides down payment and closing costs subsidies to eligible first- time homebuyers. The subsidies bridge the gap between the price of the home (including closing costs) and the maximum amount a homebuyer can borrow with a first mortgage loan. The homebuyer receives only the amount of soft second funding that is needed to close the affordability gap.
The Affordable Home Development Program is designed to provide a steady inventory of houses that will be available for sale and be affordable to residents of low and
moderate income. Through an open and competitive process, the City will award developers a set-aside of soft second subsidies for the purchasers of their completed homes. Awards will be made with special consideration for areas of the city with the most need for redevelopment. The program will encourage the rehabilitation of blighted, historic properties and infill housing.
For Interested Homebuyers
Read the Homebuyer Eligibility and Obligations information.
Review Income-Subsidy Charts
If you think you are eligible for a soft second mortgage, sign up for a First-Time Homebuyer class at one of the Approved Homebuyer Training Organizations.
After completing the course, begin searching for a home.
Contact one of the lenders on the Participating Lenders list.
The participating lender will assist you in applying for a first mortgage and a soft second mortgage.
Approved closing agencies
Place-Based Strategy Area Maps
While all areas of the city are eligible for this program. Houses within the Place-Based Strategy Areas are eligible for slightly higher subsidies.Source: www.chrissmithhomes.com