Southern Home Financing Aid Program
The Southern Mortgage Assistance Program, sponsored by the Jefferson Parish Finance Authority, aims to provide support to first-time homebuyers who often struggle with the initial costs associated with buying a home.
Financial Aid Available Under the Southern Mortgage Assistance Program, eligible residents can access a 30-year fixed-rate home loan combined with a Down Payment Assistance (DPA) Grant. The DPA Grant covers either 3 or 4 percent of the loan amount for borrowers opting for FHA, VA, or RHS loans. Homebuyers choosing a Freddie Mac HFA Advantage Loan can receive 3 percent of the loan amount as DPA assistance.
Qualification Criteria To be eligible for this program, applicants must meet certain criteria:
- Minimum Credit Score: A credit score of at least 640 is required for all applicants.
- Income Limits: The annual income for borrowers using FHA, VA, or RHS loans must not exceed $69,000. However, for those opting for a Freddie Mac HFA Advantage Loan, the annual income limit is set at $99,000.
- First-Time Homebuyers: Borrowers using the Freddie Mac HFA Advantage Loan must be first-time homebuyers.
- Home Ownership Education: First-time homebuyers applying for the Freddie Mac HFA Advantage Loan are required to complete a Home Ownership Education Program. This requirement is not applicable to FHA, VA, or RHS loan applicants.
Property Guidelines When utilizing the Southern Mortgage Assistance Program, the following property guidelines must be adhered to:
- Location: The purchased residence must be within Jefferson Parish.
- Acquisition Cost: The cost of acquiring the residence should not exceed the limits established by FHA ($271,050), VA ($417,000), RHS (no limit), and Freddie Mac’s Advantage Loan ($417,000).
- Property Type: Eligible properties include single-family homes, condominium units, and townhouses, which can be either newly constructed or existing residences.
- Primary Residence: The purchased property must serve as the borrower’s primary residence.
- Excluded Property Types: Duplexes, multi-unit buildings, recreational properties, seasonal homes, vacation homes, and investment properties are not eligible for assistance through this program. Additionally, manufactured housing is not eligible for the Freddie Mac HFA Advantage Program.
Please note that some borrowers using FHA, VA, or RHS loans may also be eligible for assistance through the Jefferson Parish Community Development Department. For further details about their program, please contact them at 504-736-6262.
