CAFA First Home

CAFA First Home is a deferred second loan for homebuyers in Multiple County, Louisiana. CAFA's bond-funded MRB program: below-market first mortgage + 4-5% DPA tiered by FICO (640/660/680+). Forgivable second mortgage over 10 years. First-time homebuyer required (waived in targeted areas). 9-parish service area centered on East Baton Rouge. CAFA First Home is the Capital Area Finance Authority's flagship Mortgage Revenue Bond (MRB) homebuyer program. It provides a below-market 30-year fixed-rate first mortgage (FHA, USDA-RD, VA, or HFA-style conventional) plus down payment / closing cost assistance structured as a deferred / forgivable second mortgage. DPA percentage is tiered by borrower FICO: 4% at 640 FICO, 4.5% at 660 FICO, and 5% at 680+ FICO of the first-mortgage loan amount. The DPA second is 0% interest, requires no monthly payment, and is forgiven over 10 years of owner-occupancy. Funds may be used for down payment, customary closing costs, or prepaid items. First-time homebuyer required (waived in federally targeted census tracts). Funding comes from State and Bond.

CAFA First Home is forgiven after 10 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Forgiven over 10 years of owner-occupancy (1/10 per year). Unforgiven balance due on sale, refinance, transfer, or non-owner-occupancy before 10 years. The assistance is recorded in 2nd Lien position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

CAFA First Home is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Federally designated targeted census tracts waive the first-time-homebuyer requirement. On credit, the program states: Tiered FICO: 640 (4% DPA), 660 (4.5% DPA), 680+ (5% DPA). Lender overlays may apply. A homebuyer education course is required, through HUD-approved housing counseling agency or eHome America online homebuyer education required prior to closing. Residency requirement: Property must be located within CAFA's 9-parish service area (East Baton Rouge, West Baton Rouge, Ascension, Iberville, Pointe Coupee, East Feliciana, West Feliciana, Livingston, St. Helena) and be borrower's primary residence. Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per first-mortgage product overlays. First-time homebuyer required (no ownership interest in a primary residence in past 3 years), waived in federally designated targeted census tracts. Property must be in CAFA's 9-parish service area: East Baton Rouge, West Baton Rouge, Ascension, Iberville, Pointe Coupee, East Feliciana, West Feliciana, Livingston, or St. Helena. Maximum 50% DTI with AUS approval. Owner-occupied primary residence. Income at or below MRB limits ($46,320 1-2p / $125,020 3+p targeted; non-targeted lower). Maximum purchase price $481,176 (non-targeted) / $588,104 (targeted). MRB federal recapture tax may apply on sale within 9 years. Homebuyer education required.

CAFA First Home limits household income to $125,020. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

CAFA First Home caps the purchase price at $588,104. Eligible property types include Single-family detached, condominium, townhouse, PUD, manufactured home on permanent foundation (per overlays). New construction and existing properties eligible. New construction is eligible. Manufactured homes are eligible.

CAFA First Home names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves. Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

CAFA First Home serves homebuyers purchasing in Multiple County, Louisiana. The program targets specific areas: Federally designated targeted census tracts (per IRS) where MRB first-time-homebuyer requirement is waived and higher income/purchase price limits apply.

Applications for CAFA First Home go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Reserved through CAFA's online lender portal at time of rate lock by approved participating lender. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.