LA CAFA Home Loan Grant
This GMFS Mortgage product is only available in select parishes of Louisiana.
CAFA’s Mortgage Origination Program will provide a competitive 30-year fixed rate mortgage with a non-repayable homebuyers grant of up to 4% of the original mortgage amount to qualifying low and moderate income homebuyer families throughout the eligible loan area parishes described below.
Program Mortgage Rate:
The mortgage rate for the program will be slightly above market rate and vary depending on the Down Payment Assistance Option chosen. The program mortgage rates are subject to change daily in order to remain competitive with the market.
Each homebuyer family will receive a non-repayable homebuyers grant equal to either 3% or 4% of the final principal balance of the mortgage loan depending on the interest rate selected.
This is a continuous program. Unlike a Bond Money Program, we will never run out of funding as this program is tied to a daily mortgage interest rate.
The program is available immediately and CAFA intends to make the program available to provide for continuous origination as long as it delivers a competitive mortgage and DPA product that meets the needs of homebuyers and lenders.
The normal tax-exempt bond or MCC program requirements (income & purchase limit, and first-time homebuyer requirement) will not apply. In addition, the homebuyers are not subject to “Recapture Tax.”
FHA 30 year or Freddie Conventional 30 year Home Possible-HFA, fixed rate only. Minimum 640 FICO score, maximum 45% debt-to-income (DTI) ratio. All first-time homebuyers under the program are required to take an approved homebuyer education course.
Eligible Loan Area Parishes:
Mortgage loans under the LA CAFA Home Loan Grant program may be made to qualifying Louisiana borrowers in the following parishes:
Maximum “credit qualifying” income
|Parish:||Freddie Mac - Home Possible Advantage||FHA 30 Yr|
|East Baton Rouge||$95,060||$78,085|
|West Baton Rouge||$95,060||$78,085|
Educational Resources (videos, podcasts, calculators & glossary)
CAFA has established the following requirements for eligible homebuyers:
- No first-time homebuyer requirement
- Maximum “credit qualifying” income 115% of AMI for FHA or 140% AMI on Freddie Conventional (see parish specific limits in table above)
- Maximum home loan limits: FHA or Freddie limits as applicable