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The Green Mortgage Downpayment Assistance Program

New Orleans, Louisiana

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Assistance

2%

Of the purchase price, as the program sets it

Income limit

140% AMI

Of area median income; varies by county and household size

Price cap

$685,400

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 5 years

What is The Green Mortgage Downpayment Assistance Program?

The Green Mortgage Downpayment Assistance Program is a forgivable loan for homebuyers in New Orleans, Louisiana.

  • Finance New Orleans' flagship energy-efficiency-focused homebuyer assistance program. Up to $25,000 0% interest second mortgage (5-year forgivable for <80% AMI; 30-year deferred non-forgivable for up to 140% AMI), plus free Energy Smart whole-home assessment and $2,500 Green Home Improvement Stipend. Pairs with FHA/VA/Fannie/Freddie 30-year fixed first mortgage. Orleans Parish only, 660 FICO, 140% AMI ceiling. Updated March 2026.
  • Finance New Orleans' Green Mortgage Program is an energy-efficiency-focused homebuyer assistance program with FOUR benefits: (1) 30-year fixed first mortgage (FHA, VA, Fannie Mae, or Freddie Mac).
  • (2) 0% Interest Second Mortgage up to $25,000 for down payment and/or closing cost assistance - structured as a 5-year forgivable loan for buyers under 80% AMI (subject to fund availability) OR a 30-year non-forgivable 0% deferred loan for buyers up to 140% AMI.
  • (3) Free whole-home energy efficiency assessment with Energy Smart, including minor energy-efficiency upgrades.
  • (4) $2,500 Green Home Improvement Stipend for upgrades that increase energy efficiency and resilience to wind, heavy rain, and flooding. Page table additionally references 2-5% DPA assistance forgivable after 3 years residency on the smaller-DPA tier. Program is for properties in Orleans Parish.
  • Funding comes from Local, Bond, and Federal.

How much assistance does it provide?

The Green Mortgage Downpayment Assistance Program provides assistance worth 2% of the purchase price, as set by the program.

  • Buyer contribution: Per first-mortgage product (3.5% FHA; 0% VA; 3-5% Fannie Mae; 3% Freddie Mac).
  • The program can be combined with other assistance, subject to the rules of each.
  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

The Green Mortgage Downpayment Assistance Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Buyers <80% AMI: 5-year forgivable, loan forgiven after 5 years of owner-occupancy. Buyers up to 140% AMI: 30-year deferred non-forgivable, balance due on sale, refinance, or transfer of property, and option to defer repayment until then. Smaller 2-5% DPA tier (per program table) forgivable after 3 years residency. Buyer must remain in home as primary residence until DPA is repaid in full or forgiven.
  • 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?

The Green Mortgage Downpayment Assistance Program is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a primary residence
  • On credit: 660 minimum (higher may be required for small-multifamily property).
  • A completed homebuyer education course, through Borrower must complete a homebuyer education class certified by FNO/HUD. Financial fitness courses strongly encouraged. First-time homebuyer training and landlord training required for FHA, Fannie Mae, and VA tracks; Freddie Mac track requires first-time homebuyer training only.
  • Residency: Property must be located in Orleans Parish. Borrower must occupy as primary residence until DPA is repaid or forgiven.
  • Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per first-mortgage product.
  • Property must be located in Orleans Parish. Combined applicant income under 140% AMI (use Freddie Mac Home Possible Eligibility Map tool). Credit score 660+ (higher may be required for small-multifamily 2-4 unit properties). Total DTI under 45% (50% with 680+ credit score). 1-4 unit primary residence (first-mortgage product limits unit count: FHA 1-2 units, Freddie Mac 1 unit, Fannie Mae 1-4 units, VA 1-2 units). Move-in ready home required (no rehab tracks). Schedule and complete Energy Smart energy efficiency assessment prior to closing. Maintain home as primary residence until DPA repaid in full or forgiven. FHA loan limits: $356,362 (single), $456,276 (duplex), $551,500 (triplex), $685,400 (four-plex). VA loan limit $548,250.

The program excludes

  • Manufactured homes
  • Purchases above the $685,400 price cap
  • Households above 140% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

The Green Mortgage Downpayment Assistance Program limits household income to 140% of the area median income, which varies by county and household size.

  • Combined applicant income under 140% AMI for Orleans Parish (use Freddie Mac Home Possible Eligibility Map tool). FHA tier: $99,000 max. Fannie Mae and VA: per agency guidelines (no FNO income cap above 140% AMI baseline).
  • The limit applies to total household income, not only the borrower&rsquo;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.

What kind of home can it be used for?

The Green Mortgage Downpayment Assistance Program caps the purchase price at $685,400.

  • Eligible property types include 1- to 4-unit primary residence (first-mortgage product limits unit count: FHA 1-2 units, Freddie Mac 1 unit, Fannie Mae 1-4 units, VA 1-2 units). Single-family detached, doubles, triplex, four-plex small multifamily. Move-in ready required.
  • New construction is eligible.
  • Manufactured homes are not eligible.

Is there eligibility for specific groups?

The Green Mortgage Downpayment Assistance 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?

The Green Mortgage Downpayment Assistance Program serves buyers purchasing in New Orleans, Louisiana.

How do you apply?

Applications for The Green Mortgage Downpayment Assistance Program go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through Borrower must complete a homebuyer education class certified by FNO/HUD. Financial fitness courses strongly encouraged. First-time homebuyer training and landlord training required for FHA, Fannie Mae, and VA tracks; Freddie Mac track requires first-time homebuyer training only..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Submit Homebuyer Program Intake form via VistaShare at financenola.org. FNO will refer to participating lender; lender reserves at rate lock subject to fund availability., and are subject to availability.

  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.

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