Direct Homebuyer Soft Second Mortgage Assistance Program

Direct Homebuyer Soft Second Mortgage Assistance Program is sponsored by City of New Orleans Office of Community Development. 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 program helps bridge the gap between the purchase price of the home and the maximum first mortgage loan amount.

Community Development Home Affordable Housing Programs Direct Homebuyer Assistance Program Emergency Rental Assistance Hurricane Ida Insurance Deductible Assistance Program Utility Assistance Program Consolidated Annual Action Plan 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 $1,000,000 of Community Development Block Grant funds (CDBG) available for the Direct Homebuyer Soft Second Mortgage Assistance Program as of January 2026 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).

Qualified applicants may receive: Up to $55,000 in Soft Second Mortgage Assistance to help bridge the gap between the purchase price and the maximum first mortgage loan amount. Up to $5,000 toward closing costs. Note: Under Community Development Block Grant (CDBG) guidelines, the program may cover up to 50% of the total closing costs , up to a maximum of $5,000 .

The Direct Homebuyer Soft Second Mortgage Assistance Program assists 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.

To Qualify, Try This Quick Eligibility Check: You may qualify if you can answer YES to the following: ✔ Are you a first-time homebuyer (or have not owned a home in the past 3 years)? ✔ Is your household income at or below 80% of the Area Median Income (AMI)? Income Guideline Chart ✔ Are you willing to complete a HUD-approved homebuyer education course ( HUD Approved Homebuyer Training Agencies ) ?

✔ Can you qualify for a first mortgage through an Approved Lender ? ✔ Is the home you plan to purchase located in Orleans Parish? ​ If you answered YES to all of these questions , you may be eligible for assistance.

Underwriting Guidelines for CDBG Funds CNO State Approved Closing Agencies Please contact Cedrica Sartin at 504-658-4244 or cedrica. sartin@nola. gov. Last updated: 6/8/2026 4:36:35 PM Leave an email address and we'll do our best to respond!

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