The Homebuyer Assistance Program enables a qualified homebuyer in
obtaining an affordable first mortgage loan through a private lender such as
banks, savings, and loan or mortgage companies. HAP provides a no interest
second mortgage loan of $20,000 that may be applied toward down payment
and/or closing costs. This loan is deferred (that is, no payment required) for
20 years. At the end of 20 years, the loan is repaid over up to 10 years. If,
however, you choose to sell the property, the second mortgage is due upon
sale of the property. At any time the original homebuyer no longer occupies
the house as the principal residence, the loan is due in full. Minimum
downpayment required of the borrower is 3% of the purchase price, which
must be at or below the appraised value of the property. Interest rates and
terms of the private lender will be set by each lender.
Persons applying for Homebuyer Assistance must meet the following
- Be a First-Time Homebuyer. (Not owned a home within 3yrs, or
- Household income must qualify as lower income under program
- Must have good credit and stable income.
- Must be able to afford the mortgage debt, property taxes and insurance
at no more than 30% of gross household income.
- Must have completed an acceptable first-time homebuyers training
course and provide certification of completion.
- Must have a Home Purchase Agreement at the time of application.
- Must purchase to occupy the home as principal residence.
Properties must be single-family, detached dwelling units located within East
Baton Rouge Parish. Property located within the corporate limits of Baker,
Central and Zachary are not eligible. (See Map Outlined for Target Area)
Properties must be vacant, owner-occupied or occupied by the tenanthomebuyer.
Sales price can be up to $175,000.00 for existing housing and up to
$200,000.00 for new housing. HAP Assistance is not provided if the appraised
value is less than the sales price. Up to $2,000 in deferred grant assistance is
available for closing costs of purchases in the target area..
New home purchases in defined target areas may qualify for an additional
$25,000.00 deferred forgivable loan, providing house specifications have been
reviewed and approved by the Office of Community Development.
Homebuyers may receive a grant of $3,000 from the American Dream
Downpayment Initiative (ADDI) to assist with reducing the First Mortgage.
What Are The Income Limits?
To anchor to the updated Income Eligibility Chart mentioned.