I just saw this post. The Orleans Parish soft second will allow up to $10,000 toward closing costs and prepaids along with the soft second subsidy.
Normally, an FHA loan allows up to six percent closing costs and prepaids paid by the seller and a conventional allows up to three percent. Both of these are based on the lowest amount down payment required.
I saw that someone also mentioned HUD REOs limit it to three percent. This is also normally the case.
If you need more information, let me know!
David P Wagner, MURP
Affiliated Bank Mortgage