SOUTHERN MORTGAGE ASSISTANCE PROGRAM
1. Program: Competitive 30-year fixed rate mortgage with a Down Payment Assistance (DPA) Grant equal to: A) either 3.00% or 4.00% of the loan
amount to qualifying home buyers for an FHA, VA, or RHS loan or B) 3.00% of the loan amount to qualifying home buyers for a Freddie Mac HFA Advantage Loan.
2. Eligible Loan Areas: The property must be located in the southern Mortgage Assistance Area, currently Allen Parish, Beauregard Parish, Calcasieu Parish, Cameron Parish, Jefferson Parish, Jefferson Davis Parish, St. Charles Parish and St. Tammany Parish, as may be updated by the Authority from time to time.
3. Mortgage Loan Rates: The loan rate will change periodically to stay competitive with the market rate. Borrowers should contact a participating lender for the current mortgage rate.
4. Program Availability: FHA, VA, or RHS mortgage loans will be available beginning September 12, 2013, until the program is terminated by the Jefferson Parish Finance Authority. A Freddie Mac HFA Loan will be available beginning October 7, 2015, until the program is terminated by the Jefferson Parish Finance Authority.
5. Eligible Loans: A minimum credit score of 640 or higher is required. 30-year fixed rate mortgage. FHA, VA, or RHS loan eligible for conversion to GNMA securities or a Freddie Mac HFA Advantage Loan eligible for inclusion on Freddie Mac Certificates. Lender will discuss with the borrower(s) the various loan requirements and loan eligibility which is subject to Master Servicer approval. Loan refinancing is not eligible and interim construction loan financing is not provided.
6. Down Payment Assistance (DPA): For an FHA, VA, or RHS loan the borrower(s) will select either a 3.00% DPA grant or a 4.00% DPA grant to be used for down payment and/or closing costs. The Freddie Mac HFA Advantage Program has a 3.00% DPA grant to be used for down payment and/or closing costs. The DPA is calculated as a percentage of the loan amount. The loan rate for a 4.00% DPA will be higher than the loan rate for 3.00% DPA. This DPA is a grant and is not repaid.
7. Eligible Borrowers: Subject to requirements stated herein, the borrower is eligible to purchase a residence under the Southern Mortgage Assistance Program anywhere in the Eligible Loan Area. For an FHA, VA, or RHS loan the borrower(s) can have or previously have had an ownership interest in a residence during the preceding three years. For a Freddie Mac HFA Advantage loan borrower(s) cannot have an ownership interest in a residential property at loan closing.
8. Income Restrictions: For an FHA, VA, or RHS loan the borrower's Annual Income effective March 28, 2016, cannot exceed $57,040 for Allen Parish; $70,035 for Beauregard Parish; $62,790 for Calcasieu and Cameron Parishes; $61,065 for Jefferson Davis Parish; $69,000 for Jefferson, St. Charles, and St. Tammany Parishes, each of which is 115% of HUD Median Income. For a Freddie Mac HFA Advantage Loan the borrower's Annual Income cannot exceed $99,000 for any parish in the Eligible Loan Area.
9. Acquisition Costs: The acquisition cost of the residence cannot exceed the amount permitted by FHA, VA, RHS, and Freddie Mac as applicable, $271,050 for FHA, $417,000 for VA, no limit for RHS, and $417,000 for a Freddie Mac HFA Advantage Loan.
10. Eligible Residence: The residence must be a single family home, which includes a condominium unit, or townhouse and can be either a new or existing residence. The residence must be principally and permanently occupied as the borrower(s) principal residence within not to exceed (60) days following the closing of the mortgage loan. Duplex, multi-unit, recreational, seasonal, vacation, or investment homes are not permitted in any program. Manufactured housing is not eligible for the Freddie Mac HFA Advantage Program.
11. Participation Lenders: A list of approved Participating Lenders can be obtained from the Southern Mortgage Assistance Program office or our website. Only approved banks or mortgage companies can reserve funds for and close a Southern Mortgage Assistance Program Loan.
12. Home Ownership Education: When all borrower(s) are first time homebuyers, at least one homebuyer is required to have satisfactorily completed a Home Ownership Education Program to qualify for a Freddie Mac HFA Advantage Loan and a copy of the certificate must be provided as part of the mortgage file. Home Ownership Education is not required for a FHA, VA, or RHS loan.
13. Program Costs: Lender may collect from the borrower its usual and customary costs, but the lender may not charge the borrower(s) any origination and/or discount fees.
14. Reservation Cancellation/Ineligibility: A borrower(s) whose mortgage loan reservation is cancelled is ineligible to participate in this program during the period beginning with cancellation of the reservation and ending one hundred twenty (120) days after cancellation of a reservation unless (1) this prohibition is waived for a specific borrower or (2) the cancellation is due to the failure of the residence to qualify.
15. Certain borrowers with an FHA, VA, or RHS loan may also be eligible for assistance through the Jefferson Parish Community Development Department. Call 504-736-6262 for further information on their program.