"Pathway to Homeownership" Soft Second Mortgage Loan Program

Income maximums recently increased from 80% to 120% of area median income, extending eligibility&#46
The Pathway to Homeownership Soft-Second Mortgage Loan Program offers soft-second home mortgage loans through participating lenders up to $65,000 at 0% interest with payments on the loan deferred until sale or refinance. In addition, the program offers up to $10,000 closing cost assistance when buying a home that will be your principal residence. The actual amount of the soft-second loan and closing cost grant received will be determined by need and annual household income, since the goal of this loan program is to cover the “gap” between the highest affordable first mortgage loan for which you qualify and the purchase price or value of the home. The minimum amount of the first mortgage loan must be equal to at least 50% of the lesser of the purchase price of the home or the appraised value, whichever is less.

All borrowers of a Pathway to Homeownership Soft-Second Mortgage Loan must commit to remain an owner-occupant at the financed home for at least three years.

Borrowers who demonstrate continuous owner-occupancy will receive LOAN FORGIVENESS. Loan forgiveness equal to 25% of the soft second mortgage loan will be awarded after five years. Each year, after the 5th year, an additional 15% of the soft second mortgage loan will be forgiven. 100% forgiveness of the soft second mortgage loan will be achieved after ten years of demonstrated continuous owner-occupancy.

Find out more on the Finance Authority website or call (504) 524-5533 or (877) 524-5533 (toll free)&#46