FOR A PDF VERSION OF THE LAP PROGRAM TERM SHEET, CLICK HERE

Program Description:

Equal to or Below 80% AMI: Historically low fixed interest rates for 30-year fully amortizing mortgage with 0%, 3% or 4% assistance for either down payment and/or closing costs

80% - 140% AMI: Historically low fixed interest rates for 30-year fully amortizing mortgage with 3% or 4% assistance for either down payment and/or closing costs

Eligible Loan Product:

Equal to or Below 80% AMI: Freddie Mac Home Possible Advantage or Fannie Mae HFA Preferred with 0%, 3% or 4%

80% - 140% AMI: Only Fannie Mae HFA Preferred available with 3% or 4% assistance

Grant Terms:

  No repayment / No recapture / No 2nd lien / No deed restrictions

Eligible Loan Areas:

The LAP program is currently available for the purchase of a residence located within Jefferson, St. Tammany, St. Charles and St. Bernard Parishes.

Loan Servicing:

Loan is serviced by Standard Mortgage Corporation, the program master servicer.

Mortgage Loan Rates:

Loan rates are posted daily; 45 day lock to Lender.  The loan rate available will change periodically to stay competitive with the market rate. Please note that the loan rate will change depending on the % DPA option.

Elligible Borrowers and Occupancy:

No first-time homebuyer requirement; Non-occupying co-borrowers and co-signers are not permitted for Freddie Mac Home Possible Advantage; 2 unit homes permitted for Fannie Mae HFA Preferred provided one unit is owner occupied; Borrowers must permanently reside in the U.S. and must occupy the property as their primary residence within 60 days after closing.

Transaction Types:

Purchase only. Loan refinancing is not eligible and interim construction loan financing is not provided.

Qualifying Income Limits:

Equal to or Below 80% AMI: Freddie Mac HFA Advantage loans or Fannie Mae HFA Preferred loans are available to Borrowers with incomes equal to or less than $56,320 (80% AMI)

80% - 140% AMI: Fannie Mae HFA Preferred loans available to Borrowers with incomes equal to or less than $98,560 (140% AMI)

Eligible Properties:

Freddie Mac HFA Advantage - One unit primary residences including condos, PUDs, and townhomes; manufactured homes are not eligible.

Fannie Mae HFA Preferred – 2 unit homes permitted if one unit is owner occupied

Maximum Loan Amount:

Follow agency guidelines

Minimum Credit Score:

640

Participating Lenders:

A list of approved participating lenders can be obtained from the Jefferson Parish Finance Authority office or here on our website by clicking here.

Only approved banks or mortgage companies can reserve funds for and close a LAP loan.

Contact JPFA if you would like to become a participating lender.

Manual Underwriting:

Not permitted with this program.

Maximum LTV:

Follow agency guidelines

Product Identifier:

Loan Product (LPA) Offering Identifier - Home Possible Advantage for HFAs

Desktop Underwriter (DU) Offering Identifier – HFA Preferred

Borrower Contribution/Source Funds/Reserve Requirements:

No minimum contribution from Borrower’s personal funds is required for one unit property.  For 2 unit properties, the minimum borrower contribution is 3%.  No reserves required. No cash back at time of closing.

Program Costs:

No program related fees. Lender may collect from the borrower its usual and customary costs and fees, but the lender may not charge the borrower any origination and/or discount fees.

Mortgage Insurance:

Equal to or Below 80% AMI: Reduced MI coverage

  • 18% for LTVs ratios > 95% and <= 97%
  • 16% for LTVs ratios > 90% and <= 95%
  • 12% for LTVs ratios > 85% and <= 90%
  • 6% for LTVs ratios > 80% and <= 85%

80% - 140% AMI: Standard MI pricing applies to loans above 80% AMI

Mortgage Insurer:

Any mortgage insurer must be approved by Freddie Mac or Fannie Mae.

Homebuyer Education:

When all borrowers are first time homebuyers, at least one homebuyer is required to have completed a homeownership education program. Eligible education program information to be provided by participating lenders.

Combining With Other Assistance Programs:

Subject to Freddie Mac or Fannie Mae, Standard Mortgage and/or mortgage insurer requirements, the Lagniappe Advantage Program may be combined with other forms of assistance; Examples include, but are not limited to CDBG, HOME funds, and Mortgage Credit Certificates (MCCs), etc.

In all cases, the most conservative guidelines for each program will apply.

Loan Pricing and Delivery:

JPFA will post rates daily and distribute to lenders via email and/or posting on their webpage. Loan registrations are made via the servicer, Standard Mortgage Corporation, website during the posted lock periods. Loans are to be delivered in a fundable condition as instructed by the servicer.

Reservation Cancellation/Ineligibility:

A borrower 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..

Completion of Exhibits:

Exhibit C - Down Payment Assistance Letter must be completed and submitted to the JPFA for signature. Prior to closing, Exhibit D -Down Payment Assistance Funding Request must be completed and submitted to the JPFA with the required documents.

Timelines:

The requirements and timelines set forth in Section 2.01 of the Mortgage Origination, Sale and Servicing Agreement are critical.

**JPFA GUIDELINES DO NOT SUPERSEDE, NOR ARE THEY A SUBSTITUTE FOR FREDDIE MAC, Standard Mortgage, MORTGAGE INSURER AND/OR LENDER GUIDELINES IN PLACE AT THE TIME THE LOAN IS UNDERWRITTEN.**