JPFA Bond Program: Down Payment Assistance in Jefferson and St. Tammany Parishes

Down payment and closing costs typically total thousands of dollars, creating a significant barrier for many potential homebuyers. The JPFA Bond Program addresses this challenge by providing assistance equal to 4% of your loan amount.

The assistance is structured as a second mortgage with 0% interest. Unlike your primary mortgage, you pay no interest on these funds. The second mortgage is included in your monthly payment alongside your first mortgage, but the 0% rate means you’re only paying down the principal amount you received.

The program includes a five-year forgiveness period. After you’ve lived in your home for five years, the second mortgage is completely forgiven and you owe nothing. If you sell or refinance before the five-year period ends, you must repay the assistance amount. If you remain in the home for the full five years, the assistance becomes yours without any repayment obligation.

While the JPFA Bond Program is designed for first-time homebuyers, the definition is more inclusive than it initially appears. First-time buyer status applies to anyone who hasn’t owned a home in the past three years, including their spouse. If you owned a home years ago but haven’t owned property within the last three years, you still qualify.

The program also provides specific exceptions. Veterans can use the program regardless of their homeownership history. Single parents who only owned a home with a former spouse during their marriage qualify as first-time buyers. Similarly, individuals who owned property solely with a spouse and are now separated meet the first-time buyer requirements.

Your household income must meet specific limits based on your location and household size.

For Jefferson Parish:

Non-targeted areas: $89,800 for households with two or fewer people; $103,270 for households with three or more people.

Targeted areas: $107,760 for smaller households; $125,720 for larger households.

For St. Tammany Parish:

Non-targeted areas: $94,800 for smaller households; $109,020 for larger households.

Targeted areas: $113,760 for smaller households; $132,720 for larger households.

The program calculates household income by including all residents over age 18, not only those listed on the mortgage application. This means total household income determines eligibility, even if some household members aren’t borrowers.

The JPFA Bond Program requires a minimum credit score of 640. Your credit report must also contain at least two credit scores. The program does not accept manual underwriting, meaning loan approval must come through an automated underwriting system.

If your credit score falls below 640, consider working with a lender to improve your credit before applying. Common strategies include paying down credit card balances or correcting errors on your credit report. These actions can sometimes raise your score within a relatively short timeframe.

If you’re using a conventional loan through Fannie Mae or Freddie Mac, you must complete a homebuyer education course. These courses prepare buyers for the financial and practical responsibilities of homeownership, covering essential topics that help you understand what to expect during and after the purchase.

Courses are available through HUD-approved agencies or online platforms with self-paced options. The curriculum addresses budgeting for homeownership, mortgage structure and terms, home maintenance requirements, and foreclosure prevention. Most courses take several hours to complete.

Borrowers using FHA, VA, or USDA loans are exempt from the education requirement. However, the course material remains relevant regardless of loan type. Many buyers find the information helpful for understanding the purchase process and preparing for homeownership responsibilities.

The program works with several loan types, each with distinct characteristics and benefits.

FHA Loans appeal to first-time homebuyers through lower down payment requirements and more accessible credit standards. FHA loans through the JPFA Bond Program carry a 6.54% interest rate.

VA Loans are available to veterans, active-duty service members, and some military spouses. These loans often require no down payment and come with a 6.54% rate. Veterans qualify regardless of previous homeownership.

USDA Loans finance homes in designated rural areas and frequently require no down payment. The program offers USDA loans at a 6.54% rate. St. Tammany Parish contains numerous USDA-eligible areas.

Fannie Mae and Freddie Mac conventional loans carry a 6.79% rate through the program. The slightly higher rate is often offset by reduced mortgage insurance costs for borrowers at 80% or below the area median income, which can decrease monthly payments.

All JPFA Bond Program loans use 30-year fixed-rate terms. Your interest rate and principal payment remain unchanged throughout the loan period.

Not sure what your area’s median income is? Fannie Mae offers an AMI lookup tool to help you find this information.

Ryan is a production supervisor at a chemical plant in Kenner, Louisiana. He’s been working at the facility for seven years and is ready to purchase a $250,000 home in Jefferson Parish. Like many working professionals, Ryan has struggled to save for a substantial down payment while managing everyday expenses and student loans from his engineering degree.

Without the JPFA Bond Program:

• Market interest rate: 7%
• Monthly payment: approximately $1,663
• Down payment must be saved independently
• Estimated down payment needed: $12,500 (5%)

With the JPFA Bond Program:

• Interest rate: 6.79% (conventional loan)
• Monthly payment: approximately $1,635
• Down payment assistance: $10,000 (4% of loan amount)
• Additional savings needed: approximately $2,500

The JPFA Bond Program provides Ryan with $10,000 in assistance, reducing what he needs to save by 80%. His monthly payment is also $28 lower due to the reduced interest rate. After living in the home for five years, the $10,000 second mortgage is forgiven entirely, effectively converting the assistance into equity he owns outright.

Many people assume they can’t afford to buy a home, but the JPFA Bond Program addresses several obstacles that typically stand in the way.

Saving enough money for a down payment and closing costs prevents many people from buying a home. The 4% assistance from the JPFA Bond Program directly tackles this challenge. On a $200,000 home, that’s $8,000 in assistance. For most buyers, that amount makes the difference between continuing to rent and becoming a homeowner. The assistance reduces what you need to save on your own, making homeownership possible sooner than you might expect.

You might assume you don’t earn enough to qualify for a mortgage. The income limits for this program are actually quite generous. A family earning $100,000 can still qualify in targeted areas. The program recognizes that homeownership should be accessible to working families across different income levels, not reserved only for high earners.

A credit score of 640 is lower than what many conventional loan programs require. The JPFA Bond Program acknowledges that not everyone has perfect credit. A 640 score demonstrates you’re managing your finances responsibly, even if your credit history isn’t flawless. This lower threshold opens homeownership to buyers who might not qualify for traditional financing.

The JPFA Bond Program can work alongside the Heroes to Homeowners grant for borrowers in specific professions. First responders, teachers, healthcare workers, and service members may qualify for additional grant money through Heroes to Homeowners. Unlike the JPFA assistance, which is forgiven after five years, Heroes to Homeowners provides immediate grant funds with no repayment requirement. Combining both programs can significantly reduce or eliminate your out-of-pocket costs at closing.

The program covers single-family homes and townhouses in Jefferson Parish and St. Tammany Parish. The property must serve as your primary residence, not a vacation home or investment property.

Maximum purchase price limits vary by area type. Non-targeted areas have a limit of $481,176, while targeted areas allow purchases up to $588,104. These thresholds provide access to a broad range of properties throughout both parishes.

All properties must meet standard building codes and pass inspection requirements. These standards ensure your home meets basic safety and habitability requirements.

Work with an Approved Lender DSLD Mortgage is an approved lender for the JPFA Bond Program and can help you navigate the application process and verify your eligibility.

Organize Your Documentation Prepare recent pay stubs, two years of tax returns, and current proof of employment. Having these documents ready helps move your application forward efficiently.

Enroll in Homebuyer Education (If Required) Conventional loan borrowers must complete a homebuyer education course. Enrolling early prevents this requirement from delaying your closing.

Evaluate Properties Carefully When searching for homes, factor in both purchase price and ongoing expenses. Property taxes, insurance, and maintenance costs affect your total monthly housing payment and long-term affordability.

The JPFA Bond Program offers a practical path to homeownership for eligible first-time buyers in Jefferson Parish and St. Tammany Parish. Through down payment assistance, competitive interest rates, and accessible qualification standards, the program makes purchasing a home more financially feasible.

The five-year forgiveness structure provides time to establish yourself as a homeowner and build equity in your property. Once the forgiveness period ends, the assistance funds become permanent equity rather than debt. This converts what begins as a loan into a long-term financial benefit.

DSLD Mortgage is an approved lender for the JPFA Bond Program with experience helping borrowers navigate the application process. Contact us to determine if you qualify, understand the program requirements, and begin your application. We work with JPFA to coordinate the assistance and guide you from pre-qualification through closing.

For more information about the Jefferson Parish Finance Authority Bond Program or to get started with your application, contact DSLD Mortgage today. Our team is ready to answer your questions and help you understand your options.