Pathways Soft Second Program

What is Pathways Soft Second Program?

Pathways Soft Second Program is a deferred second loan for homebuyers in Statewide, Louisiana.

• HUD HOME-funded soft second up to $55K ($65K in high-cost areas). 0% deferred 30 years. 80% AMI ceiling. 640 FICO. Pairs with LHC or other approved first mortgage. Statewide.
• Louisiana Housing Corporation's Pathways Soft Second Program (also called Pathways to Homeownership) provides a HUD HOME-funded soft second mortgage of up to $55,000 ($65,000 in some HOME-eligible high-cost areas) to fill the affordability gap between first mortgage and total acquisition cost. The soft second is 0% interest, deferred for 30 years (or until sale, refinance, or transfer of property). Pairs with a first mortgage from an LHC-approved lender. 640 minimum FICO (660 for some product overlays). Income at or below 80% AMI per HUD HOME guidelines.
• Funding comes from Federal, HOME, and State.

Do you have to pay it back?

Pathways Soft Second Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Deferred for 30-year HOME affordability period. Balance due in full on sale, refinance, transfer of property, or non-owner-occupancy. No monthly payments during deferred term.
• 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.

Who qualifies?

Pathways Soft Second Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Pathways Soft Second Program limits household income to 80% of the area median income, which varies by county and household size.

• HUD HOME income limits at 80% AMI (Low Income). Range: $46,000 (1-person) to $86,750 (8-person), varies by parish. Verify parish-specific limit at lhc.la.gov.
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Pathways Soft Second Program caps the purchase price as follows: Per HUD HOME 24 CFR 92.254 maximum acquisition cost limits, varies by parish and unit count. Verify at lhc.la.gov.

• Eligible property types include Single-family detached, condominium, townhouse, PUD. New construction and existing properties. Manufactured housing on permanent foundation (per HOME standards).
• New construction is eligible.
• Manufactured homes are eligible.

Is there eligibility for specific groups?

Pathways Soft Second Program 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.

Where does it apply?

Pathways Soft Second Program serves buyers purchasing in Statewide, Louisiana.

How do you apply?

Applications for Pathways Soft Second Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through LHC-approved 8-hour HUD-certified homebuyer education required. Pre-purchase counseling at HUD-approved housing counseling agency..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application through LHC; reserved subject to annual HOME allocation availability. First-come, first-served., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.