City of New Orleans Direct Homebuyer Assistance Program

The Direct Homebuyer Soft Second Mortgage Assistance Program provides down payment and closing costs subsidies to eligible first- time homebuyers.  Subsidies made available to Homebuyers Bridge the gap between the purchase price of the home and the maximum first mortgage loan amount.  Subsidies also include closing costs.

The City of New Orleans Office of Community Development has $3,000,000 of Community Development Block Grant funds (CDBG) was made available for the Direct Homebuyer Soft Second Mortgage Assistance Program March 11,  2019 and will add additional funding as it becomes available.  This program provides down payment and closing cost subsidies to eligible First-time Homebuyers whose income does not exceed 80% of the Area Median Income (AMI).

The Direct Homebuyer Soft Second Mortgage Assistance Program assist Homebuyers to bridge the gap between the purchase price of the home and the maximum first mortgage. Eligible Homebuyers using CDBG funds may receive up to $55,000 in soft second funds and up to $5,000 in closing cost assistance (CDBG guidelines only allow us to pay 50% of the total closing cost).

Maximum Sales Price in Orleans Parish is $324,000