First Responder Mortgage Programs

Reduced Mortgage Interest Rate Program

The New Orleans Police and Justice Foundation has initiated the purchase of low interest bonds in association with the bonding authority of the State of Louisiana through the Louisiana Housing Authority. These funds are to be made available to first responders in Orleans Parish in association with the purchase of a new home or related to the reconstruction of an existing home owned by the eligible party.

• Maximum Mortgage – The maximum loan made under this program will be $250,000. Larger loans will not be eligible. One loan per immediate family.
• Loan Parameters - Loans will be made available at a rate that is generally 1% below prevailing average marketrates. Minimal down payments and closing cost will be included as a part of the loan. This is made possible by the bulk purchase of the funds by the New Orleans Police Foundation. No additional funds will be available at the time of closing.
• Qualifications - Standard mortgage qualifications and requirements will be met to receive the loans. This loan must be made related to the purchase of a primary residence or for the repair of damages suffered as a result of Hurricanes Katrina or Rita. You must also register with the Foundation prior to loan execution. The loans are made under the prescribed rules for the program and some income limitations apply.
• Designated Lending Institutions – This program is generally limited to the lending institutions that have partnered with the State of Louisiana Housing Finance Agency and the New Orleans Police Foundation. Eligible personnel may seek support from any reputable financial institution or lending source that can meet the State qualifications standard for the described program.

General Mortgage Subsidy Program

A cash bonus will be paid to any eligible person related to any new first or second mortgage (limit one payment for a primary residence) taken out associated with the purchase of a new home or related to the reconstruction of an existing home owned by the eligible party.

• Maximum Mortgage – This program is limited to the first $250,000 of any loan made by eligible personnel. One loan per immediate family.
  
  This program is limited to the first $250,000 of any loan made by eligible personnel. One loan per immediate family. of $8,000.
  
  
• Next $100,000 - A cash payment will be paid at a rate of 2% for the next $100,000 above and beyond the initial $150,000, or any portion thereof, for a new first or second mortgage. As an example, a $250,000 loan will receive a cash payment at the time of closing of $6,000 for the first $150,000 and $2,000 for the next $100,000 or an $8,000 total payment.
• Qualifications - Standard mortgage qualifications and requirements will be met to receive the loans. Loans must be made related to the purchase of a primary residence or for the repair of damages suffered as a result of Hurricanes Katrina or Rita. You must also register with the Foundation prior to loan execution. Higher interest loans associated with credit issues are eligible. There are no income limitations.
• Use of Funds - All funds are to be used in association with the closing costs, down payment or other fees of a first or second mortgage issued in association with the purchase or improvement of a primary residence. Funds will be distributed to the lending institution at the time of closing on behalf of the eligible party by The New Orleans Police Foundation.
• Outside Lending Institutions – This program is not limited to the lending institutions that have partnered with the New Orleans Police Foundation. Eligible personnel may seek financial support from any reputable financial institution or lending source and receive the described funds. Funds must be used in association with any legitimate mortgage program under the parameters described herein.

Pre-Program Mortgage Subsidy Program

A cash bonus will be paid to any eligible person related to any new first or second mortgage (limit one payment for a primary residence) taken out associated with the purchase of a new home or related to the reconstruction of an existing home owned by the eligible party prior to the initiation of this program and subsequent to August 29, 2005.

• Maximum Mortgage – This program is limited to the first $100,000 of any loan made by eligible personnel after August 29, 2005 and prior to March 1, 2006. One loan per immediate family.
• Payment - A cash payment will be paid at a rate of 4% for the first $100,000, or any portion thereof, for a new first or second mortgage. As an example, a $50,000 loan will receive a cash payment of $2,000; a $200,000 loan will receive the maximum, $4,000 (4% of $100,000).
• Qualifications - This loan must be made by an eligible person. Loans must be made related to the purchase of a primary residence or for the repair of damages to a primary residence suffered as a result of Hurricanes Katrina or Rita. You must also register with the Foundation. A copy of a signed intent to purchase agreement and a HUD-1 must be presented to receive payment. There are no income limitations.
• Use of Funds – It is highly recommended that all funds be used in association with the continuing purchase or improvement of a primary residence. Funds will be distributed directly to the named eligible party on the HUD-1by The New Orleans Police Foundation.

Statement of General Eligibility

Individuals actively employed by the New Orleans Police Department, the New Orleans Fire Department, and the Emergency Medical Service, including non-firefighter and non-police officer personnel, on January 1, 2006 are eligible for this program. This program is limited to the primary residence of the eligible employee and will continue until all funds are expended or until otherwise directed by the Board of Directors. The New Orleans Police Foundation as a private non-profit corporation reserves the right to deny these services to any individual based on their performance record, their disciplinary action record or the suspect nature of the transaction.

Associated Financial Institutions that have agreed to work with the New Orleans Police and Justice Foundation regarding mortgage programs:

• AM South Bank
• American Home Mortgage
• Magnolia Mortgage
• Mortgage Market
• Whitney Bank

The above institutions have agreed to work with Fire, Police and EMS personnel from Orleans Parish. Other financial institutions may also participate at the discretion of those program eligible individuals making the applied for loan. Please notify the Foundation at least two weeks prior to closing if an alternative financial institution is involved.