April 13, 2021

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New Mexico First-Time Homebuyer Assistance Programs

New Mexico offers a balance of thrill – five national forests and eight ski resorts will keep any adventure seeker busy – and plenty of tranquility with natural hot springs and starry skies. The state’s sprawling land has been particularly attractive to homebuyers recently. The median home sales price rose more than 15 percent to $ 260,000 last year, according to real estate agent Redfin.

If you’re looking to buy a home in New Mexico but need help, contact the state-owned real estate finance agency New Mexico Mortgage Finance Authority (known as MFA), which helped nearly 2,900 families become homeowners in 2020. If you are one First time buyerabove all, the agency can make the difference between continued rent or rent Become a homeowner.

New Mexico First Time Home Loan Programs

MFA FIRSTHome Loans

To qualify as a first-time buyer, this doesn’t necessarily have to be your “first” time owning a home. Instead, you may simply not have owned and occupied a primary residence in the past three years. If this describes you, then you should check out the New Mexico Mortgage Finance Authority’s FIRSTHome program, which can be used with a conventional FHA, VA, USDA, or HFA Preferred loan.

Borrower Requirements:

  • Pass score 620 (there are some exceptions for alternative credit qualifications if you have no credit history)
  • At least $ 500 of your own money must be used to pay for the property
  • Homeowners consultation must be completed prior to purchase
  • Must have an annual household income that does not exceed MFA Limitswhich vary based on location and number of members in the household ($ 65,880 to $ 144,440)

Ownership Requirements:

  • The purchase price must not exceed MFA Limitswhich vary from $ 294,601 to $ 413,129 across the state
  • Must be a single family home
  • Cannot be used for income generation (i.e. not an income or investment property)

MFA NEXTHome Loans

As the name suggests, MFA’s NEXTHome loan isn’t just for first-time buyers. So if you are moving into your “next” home, it may be an option for you.

However, the program can also work well for first time buyers with low and middle incomes. The requirements for the borrower are similar to those for the FIRSTHome program, but the income and purchase price limits are the same regardless of location or household size:

  • Household income limit: $ 91,000 nationwide
  • Purchase price limit: $ 340,000

New Mexico Down Payment Assistance

MFA FIRSTDown down payment help

In addition to a FIRSTHome loan, MFA offers FIRSTDown, a Advance payment assistance Program. Because it can be difficult for a first-time buyer to raise funds to cover up-front costs, FIRSTDown is offering up to $ 8,000 in the form of a second mortgage. The second mortgage has a low interest rate, has a 30 year term and is repaid the same way you repay your first mortgage.

However, these funds are not available on their own. FIRSTDown support must be combined with a FIRSTHome loan. The requirements of the borrower – credit score, income and purchase price limits, and the need for advice to the homeowner before buying – are identical to those of FIRSTHome.

MFA NEXTHome deposit help

If the NEXTHome program turns out to be a good fit for your first home, you can also get down payment assistance, up to 3 percent of the amount of your first mortgage. There are no monthly payments for the support loan and if you meet certain conditions there is no need to repay it at all. From the 11th year of the loan term, 20 percent of the support is granted until it is fully granted after 15 years. If you sell your home or refinance your first mortgage before that point, the support loan will have to be paid back.

MFA HOMENow deposit assistance

If you do less than 80 percent of the time Median land income (AMI) When you buy a home, the HOMENow program lets you get up to 8 percent of the purchase price or $ 8,000 (whichever is lower) to help reduce down payment and closing costs. This is a second loan but it will be granted after 10 years if you still own and occupy the property. You must contribute at least $ 500 of your own money to purchase to qualify.

However, HOMENow is only available to a limited extent. So please contact MFA directly to check the current status.

Other assistance programs for homebuyers in New Mexico

In addition to MFA buying assistance, you may find additional first-time buyers assistance depending on where you’re looking to buy.

For example, in Santa Fe, the Santa Fe Community Housing Trust has a down payment support loan program that offers certain buyers up to $ 20,000. The organization is focused on serving veterans, households with special needs, larger families, households with displaced housewives, and anyone earning less than 80 percent of the AMI.

Where you do your banking can also affect your ability to find help. For example, the Kirtland Federal Credit Union offers eligible members grants of up to $ 6,000 – non-repayable cash – towards down payment costs through their start-up program.

Other first-time buyer programs

You can use the Bankrate guide Loans and Programs for First Time Buyers explore other ways to make your purchase more manageable, including FHA, VA, and USDA loans that have either low or no down payment and less stringent overall credit requirements.

For more New Mexico home ownership programs, including by city, see HUD.gov.

Getting started

Ready to start your journey to become a homeowner? First of all, check to see if you qualify for any of the MFA programs by checking this out Income and purchase price limits In the area you want to call home. Then search the List of banks, credit unions, and mortgage lenders who are approved to offer these loans. Make sure you know exactly where too Mortgage rates today are so you know which lenders are offering you good deals.

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