If you are buying a home in East Baton Rouge or West Baton Roug, the Louisiana LHFA bond can provide from 4% to 9% of the mortgage loan amount to be paid at closing to cover part of the down payment, closing costs, and prepaid items. There are income limits and home cost limits. And the program interest rates vary depending on which type of loan for which you quality. The HOME program gives a minimum of 4.5% and a lower interest rate. The assisted program gives 4% and a slightly higher interest rate. Both give assistance toward other monthly costs. This program allows slightly lower credit scores than the present FHA lowiest limit of 620. The popular rural developmnet funding isn't available for homes inside the city limits of Baton Rouge.
Many are wondering: can use these programs and still get the $8000 1st time homebuyer tax credit? Yes, there is no exclusion for type of mortgage or if you pay cash. The important thing is that you be sure you close on an home BEFORE November 2009, which is the desdline for obtaining the $8000 tax credit that is part of the Economic Stimulus plan.
What a great time to buy a home with interest rates ranging from 4.5% to 6.9% depending on which mortgage program you select and qualify for!
Related questions about the $8000 tax credit for 2009: