Area Finance Authority (CAFA) Home Loan Grant program is now available to several Louisiana parishes including Tangipahoa, St. Tammany, and St. Bernard.
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 in eligible loan area parishes of Louisiana.
Mortgage rates for the program will be slightly above market rate and vary somewhat depending on the Down payment Assistance Option chosen, and are subject to change daily in order to remain competitive with the market.
Per TheCAFA.org website, today’s rates are pictured below.
Each homebuyer family will receive a non-repayable homebuyer grant equal to either 3% or 4% of the final principal balance of the mortgage loan depending on the interest rate selected.
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
- Maximum home loan limits: Agency limits as applicable
This program is available immediately. The normal tax-exempt bond or MCC program requirements (income & purchase limi, and first-time homebuyer requirement) will not apply. In addition, the homebuyers are not subject to “recapture tax.”
- FHA – 30 year
- Freddie – 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.
To see if you qualify for up to 4% of CAFA Grant Assistance, call us today at 985-778-2525!