Search DU CTLAT Blog

Sunday, October 7, 2012

Exciting News from The Finance Authority of New Orleans!


Having trouble viewing this email? Click here

 

The Finance Authority of New Orleans
 
The Finance Authority of New Orleans
Press Release
For Immediate Release
The Finance Authority of New Orleans Announces
 
5% DOWNPAYMENT REQUIREMENT WAIVED FOR MORTGAGE LOAN PROGRAM
 
No Income Restrictions, Allows Nearly ALL Mortgage Loan 
Borrowers to Participate
 
 
 
 
NEW ORLEANS, LA  (October 5, 2012) - The Finance Authority of New Orleans, today announced a change in their 2012 Home Mortgage Bond Program lowering the upfront cash needed by home loan borrowers.
 
The 5% downpayment borrower contribution has been waived, enhancing the program's accessibility for low-to-moderate income buyers and providing a competitive alternative to all, including high income buyers.  
 
"We are pleased that U.S. Bank saw fit to change their 5% minimum contribution requirement which helps us in our mission of providing citizens a conduit for low interest home loans," said Mtumishi St. Julien, Executive Director of The Finance Authority of New Orleans.
 
The change is expected to enhance the program by allowing The Finance Authority to provide local lenders and borrowers another low interest rate option at 3.25% or an added downpayment grant of 4% (of the loan amount) for first-time homeowners at an interest rate of 3.50%.
 
"Because of the mortgage loan industry's recent meltdown and the nation-wide economic downturn, many mortgage lenders have tightened their belts and now require 'more skin in the game' from borrowers.  By lowering loan service fees to U.S. Bank and placing a ceiling on the applicant's debt load to no more than 45% of the applicant's income, we successfully argued that our borrowers deserved a waiver of the 5% cash upfront requirement," said St. Julien.
 
An added caveat, that has never been available in past programs, now allows current homeowners to take advantage of the program's low rates too,but only if the purchased property will become their primary residence.  Current homeowners may also keep their old home.
 
"First-time borrowers who need a little help with the downpayment and high income earners wanting a low interest rate will absolutely love this program, says Carrie Curet, Vice President and CRA Community Development Officer at IBERIABANK.
 
The Finance Authority's 2012 Home Mortgage Bond Program is also combinable with the City of New Orleans' soft second program; guaranteeing those buyers an interest rate of 3.25% for FHA loans or 3.50% for conventional loans.  
 
"City of New Orleans employees were recently approved to participate in the city's soft second loan program, of course they can use any financing option, but why not use The Finance Authority's bond loan? The interest rate is competitive, making it a viable financing option for city employees as well as the general public," says Andreanecia Morris, Greater New Orleans Housing Association (GNOHA) Chairperson and Vice President for Homeownership and Development at Providence Community Housing.
 
"The homes we've built in Central City's Saratoga Square could definitely be purchased through this loan program. I am going to recommend the program to our potential homeowners as a financing option," says Nicole Barnes, Executive Director of Jericho Road Episcopal Housing Initiative located in Central City.  "The interest rate alone is a great incentive, and when paired with the City's soft second or the 4% grant is added, it's definitely a triple win for the homebuyer, Jericho Road and The Finance Authority."
 
"Emphasis should be made regarding the program's availability ALL buyers interested in purchasing in Orleans Parish, low-to-moderate, moderate, or high income earners are welcomed.  Income restrictions, which usually preclude participation for higher income earners, are not applicable in this particular bond program, so all borrowers, whether or not its their first home, can use this financing method," St. Julien added.
 
The Finance Authority's 2012 Home Mortgage Bond Program loans are available at five  participating banks:  First NBC, Gulf Coast Bank and Trust, IBERIABANK, Wells Fargo Bank, and Whitney National Bank.
 
Applicants are strongly encouraged to visit The Finance Authority of New Orleans website at www.financeauthority.org to explore program details or they may call (504) 524-5533 with questions.
 
 
The Finance Authority of New Orleans is a public trust created by the City Council of New Orleans in 1978 under the provisions of the Louisiana Public Trust Code. Since 1978, The Finance Authority of New Orleans has issued more than $550 million in mortgage revenue bonds. Proceeds from these bond issues have been used to finance over 7,000 new homeowners in the City of New Orleans. In addition to financing home mortgages, The Finance Authority of New Orleans provides tax-exempt bond financing for public facilities, facilities owned by non-profits, multi-family housing and all forms of community & economic development. The Finance Authority programs are authorized by the New Orleans City Council.
 
For more information, visit www.financeauthority.org
 
For information on Jericho Road Episcopal Housing Initiative, visit www.jerichohousing.org
 
For information on Providence Community Housing, visit www.providencecommunityhousing.org
 
A list of participating lenders can be found at www.financeauthority.org/info/lenders.shtml
 
###
The Finance Authority of New Orleans
(504) 524-5533

Share/Bookmark

No comments:

Post a Comment