OCD's Homebuyers Rehab Target Area Map booklet

The Home Buyer's Assistance Program or HAP enables a qualified home buyer 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 $10,000 that may be applied toward down payment and/or closing costs. This loan is deferred (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. If the original homebuyer no longer occupies the house as the principal residence, the loan is due in full. Minimum down payment 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 at those set by each lender.

Who Is Eligible?

Person(s) applying for Home Buyer Assistance must meet the following requirements:

1. Be a first-time home buyer. (Not owned a home within 3 years, or a displaced homemaker).

2. Household income must qualify as lower income under program regulations.

3. Must have good credit and stable income.

4. Must be able to afford the mortgage debt, property taxes, and insurance at no more than 30% of gross household income.

5. Must have completed an acceptable first-time home buyer's training course and received a certificate there from.

6. Must have a home purchase agreement at the time of application.

7. Must purchase to occupy the home as principal residence.

What Properties Are Eligible?

Properties must be single-family, detached dwelling units located in East Baton Rouge Parish. Property located in the corporate limits of Baker and Zachary are not eligible. Properties must be vacant, owner-occupied or occupied by the tenant-home buyer. Sales price and appraised value can not exceed $93,000 for new construction and $88,000 for existing housing.

Target Area

Sixty percent of available assistance funds are initially reserved for home purchases within a target area.

For properties within the target area, additional financing assistance is available for properties requiring at least $5,000 in necessary repairs. New home purchase assistance is restricted to the target area. Up to $1,000 in deferred grant assistance is available for closing costs of purchases in the target area.

Within the target area, rehabilitation financing will be at no interest, with up to $18,000 of the rehabilitation financing as a 15-year deferred, forgivable loan over each year that the home buyer owns, occupies, and properly maintains the house. Repairs must be completed within, and no more than one year.

*To assist in defining weather a property lies within the target area, OCD has prepared a detailed map booklet outlining the target area with labels for street and subdivision names. The map booklet has been reproduced as a Adobe Acrobat file and made available for downloading.

How Do I Apply?

Applicants will be taken on a first-come-first-served basis. If you believe that you meet eligibility requirements, contact a home buyer's loan officer at the City-Parish Office of Community Development to schedule an application appointment.

What Happens Next?

Community Development Housing Staff will take eligibility applications. This will involve a determination as to whether the applicant meets program eligibility requirements and a preliminary credit and loan affordability review.

Eligible applicants will be issued a Notice of Eligibility that they can use with participating private lenders. Applicants will be provided a list of lenders, how to contact them, and a description of any special terms each lender may offer. The applicant may apply to any lender the applicant feels offers the best terms. Notices of Eligibility will carry deadlines for making an application to a lender. Notices that are not used within 30 days will automatically be cancelled and those funds reallocated to the next eligible applicant.

If the loan is approved by the private lender, a Home Buyer Loan Agreement is signed between the City-Parish and the home buyer, after a loan closing is scheduled by the lender.

What Are The Income Limits?

The income guidelines listed at he above link are the maximum limits for participation in the program. The limits indicated are those in effect at the time this brochure was printed. The limits are subject to change without notice. Contact the Office of Community Development for the current limits.

Who Should I Contact?

Contact the Office of Community Development for more information on the Home Buyers Assistance Program.