Finance Authority of New Orleans replenished with $25M for loans

It's been a year since the Finance Authority of New Orleans could offer loans for home buyers and renovators. That will all change with a $25-million bond issue FANO closed on last week that will provide 5.6 percent, 30-year fixed-rate loans to Orleans Parish homeowners, said Mtumishi St. Julien, FANO executive director. The loans are being offered through the "Welcome Back Home Loan Program," St. Julien said. Open to people of all income types, the program is offering loans now. Participating lenders include: American Home Mortgage, Capital One Mortgage, Chase Manhattan Mortgage, Countrywide Home Loans, Gulf Coast Bank, Johnson Mortgage. Liberty Bank and Trust, Regions Bank, Standard Mortgage and Whitney National Bank. "That money is really available now," St. Julien said.. The limit is $289,704 but money is also available for renovating, he said. One-third of the program is not income limited. Two-thirds of the program is limited for families of two people or less who earn $62,760 and families with three or more people who earn $73,220. FANO selected Countrywide of Calabasas, Calif., through a bidding process to be the master loan servicer. The other bidder was U.S. Bank of Minneapolis, he said.