LHC Board Authorizes Soft Second Loan Program for First-time Homebuyers in Disaster Stricken Parishes
BATON ROUGE, LA – Today, the Louisiana Housing Corporation Board of Directors approved $6.1 million for LHC’s soft second mortgage assistance initiative, which is slated to launch August 2018. The purpose of the initiative is to bridge the affordability gap between the price of the home and the maximum amount a homebuyer can borrow with a first mortgage loan.
The soft second mortgage loan is specifically designed for first-time homebuyers with annual incomes at or below 80% Area Media Income (AMI) in parishes impacted by Hurricanes Gustav, Ike, and Isaac. The loan provides 20% of the homes purchase price up to $30,000 and up to an additional $5,000 for closing cost assistance for a total of up to $35,000 in forgivable financial assistance.
Qualified borrowers may receive an even greater savings by taking advantage of LHC’s Mortgage Credit Certificate (MCC) program. MCC provides an annual tax credit equal to 40% of the mortgage interest paid within a calendar year.
For more information about LHC’s soft second loan program, please email email@example.com.
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.
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