Finance Authority of New Orleans

Frequenty Asked Questions - The "Expand to Homeownership" Grant Program

 

What is it?
The "Expand to Homeownership" Grant Program is designed to help New Orleans homebuyers with down payment and closing costs when purchasing a home. This program provides a Grant of up to 4% of the loan amount. All mortgages are fixed rate 30-year loans. Borrowers must occupy the home as their principal residence.


Where do I apply for this program?

Interested persons should apply with our participating lenders.


Who can use this money?

Homebuyers whose household incomes do not exceed 140% of the New Orleans Area Median Income by household size which in 2014 has been designated under the U.S. Department of HUD guidelines as $84,000.


If I use this program to purchase a new home, may I rent my old home?

Yes. Non-first time homebuyers are allowed to keep their old home, however, the new home must be the principal residence of the borrower(s).


Where can I buy a home?

Anywhere in Orleans Parish as long as the home does not exceed the program’s maximum sales price: $271,050 for FHA, $417,000 for VA or Conventional loan maximums.


Can I sell my home at any time?

Yes. Your loan will be paid off from the proceeds of the sale.


Do I have to pay the closing cost assistance or down payment assistance back?

No. The down payment and/or closing cost assistance is a grant.

 

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