The City of New Orleans launches an incentive program for school teachers to help them buy a home in Orleans Parish.
The program aims at helping school teachers with a down payment to purchase a home in New Orleans.
The $1.5 million Teacher Homeownership Program is in response to the significant shortage of educators and to encourage the recruitment and retention of school teachers in Orleans Parish.
The down payment assistance provides an interest-free forgivable loan that will bridge the affordability gap between the price of the home, including closing costs and the maximum amount the homebuyer can borrow with a first mortgage.
Program Guidelines
Applicants must be currently employed as an early childhood instructor, K-12 teacher in a public school, or school behavioral health professional in New Orleans
Demonstrate a minimum of three years teaching or education experience at the time of loan application
Demonstrate continued employment in education for at least 3 years
Loan is subject to penalties and other claw-back provisions if applicant leaves the teaching/education profession within 3 years of application
Meet the income guidelines established for the program (listed below)
Qualify for a first mortgage with a City Approved Lender who will determine eligibility for the city’s forgivable second mortgage
Agree to occupy the property (a single family dwelling) as the principal residence for a minimum of 10 years
The property must be located in Orleans Parish
The selected house must meet minimum Housing Quality Standards
Maintain flood and homeowner’s insurance in the amount required by the mortgage lenders and the homebuyer program
The homebuyer does not have to be a first-time homebuyer
Funds will be available on a first come first served basis, but will be equitably dispersed across all five council districts
Income Limits
Maximum Income is 80 percent of the Area Median Income:
$39,300 (1- person household)
$44,900 (2-person household)
$50,500 (3-person household)
$56,100 (4-person household)
$60,600 (5-person household)
$65,100 (6-person household)
“Affordability has been at the forefront and a priority for my administration and the City of New Orleans,” said Mayor LaToya Cantrell. “We’ve administered programs such as this for homeownership throughout our city, but there is a real need to focus specifically on our teachers to address systemic issues that we are facing regarding the retention and recruitment of teachers coming to our community and remaining in the profession. Anything that we can do to leverage our resources is something that the City is willing to do, and this is an example of that commitment.”
More information, including how to apply, can be found at nola.gov/community-development/ or by calling OCD at (504) 658-4200.
