City of New Orleans Announces Funding for
Soft Second Mortgage Program
NEW ORLEANS — The City of New Orleans Office of Community Development today announced that $3 million in Community Development Block Grant (CDBG) funds will be made available for the Soft Second Mortgage Program, effective immediately. This program is a direct home-buyer assistance program that provides down payment and closing-cost subsidies to eligible first-time home-buyers whose income does not exceed 80 percent of the Area Median Income (AMI).
“The Cantrell Administration recognizes the many benefits of home ownership for the people of New Orleans. Many just need just a little bit of assistance to make it across the threshold. The Soft Second Mortgage Program is just one of the tools being used to combat the affordable-housing crisis,” said Marjorianna Willman, Director, Office of Community Development.
The Soft Second Mortgage Program assists home buyers in bridging the gap between the purchase price of the home and the maximum first mortgage. Eligible home buyers may receive up to $35,000 in soft second funds and up to $5,000 in closing-cost assistance.
To qualify, the buyer has to meet the following criteria:
- Complete home-ownership training by one of the approved agencies. (Click here for the list.)
- Be determined eligible for a first mortgage by an approved lender. (Click here for the list.)
- Income cannot exceed 80 percent of the AMI
All the information can be found on the City website. (Click here.)
For more information, you may contact Taymia Muse at (504) 658-4243, Lindsay Smith at (504) 658-4244 or Tonya Bernard at (504) 658-4245.