The New Mexico Mortgage Finance Authority or MFA is a quasi public entity that finances housing and other related services for lower income families. Home buyers in New Mexico can find help for down payment assistance, closing cost assistance, and mortgage financing assistance programs through participating lenders and the New Mexico Mortgage Finance Authority.
New Mexico Mortgage Finance Authority Offers A Variety Of Below Rate Mortgages
MortgageSaver programs in New Mexico offer below market interest rates and closing cost assistance to first time home buyers. A first time homebuyer is defined as an individual or individuals who have not owned a home in the last three years. The types of loans included in the MortgageSaver program would be VA, FHA, My Community Mortgages through Fannie Mae and Community Solutions Programs. RHS or Rural Housing Service guaranteed, leveraged or direct loans are also available like the Native American trust lands.
New Mexico MortgageSaver Program For Home Buyers
MortgageSaver loans are 30 year fixed rate loans that are available below the 30 years fixed street market rate. The following is a summary of each MortgageSaver mortgage program offered by the New Mexico Mortgage Finance Authority.
- MortgageSaver Zero – Offers a mortgage rate is about even with the street rate 30 year rates but it has no discount fees or loan origination fees.
- MortgageSaver Xtra – This loan features a greatly discounted interest rate reserved for very low income borrowers. The cut off is at or below 50% of Area Median Income or AMI.
- MortgageSaver Plus – This loan features a slightly higher interest rate than a traditional 30 year mortgage. There are no discount fees or origination fees and there is a 3% down payment assistance grant built in to the loan. The grant can be used towards down payment, pre paid expenses and closing costs.
You can also use the money to buy the interest rate down even further or VA funding fees, lower the principal balance or even pay the FHA upfront MIP or mortgage insurance premiums.
How Do You Qualify For A MortgageSaver Loan In New Mexico?
To qualify for a Mortgage Saver loan you need to meet with a professional MFA – qualified mortgage lender. They will need to review your monthly income, expenses, credit and employment to determine which programs you would be able to qualify for. They will also determine the amount of down payment you may need or down payment assistance or housing grant that you may be able to qualify for the loan. They are experience and should be able to guide you to the right mortgage option.
Is There Down Payment Assistance In New Mexico?
There is down payment assistance in New Mexico through the Hero Program and the Mortgage Booster Program. Hero stands for Home Equity & Required Occupation. The Hero Loan Program is special first and second mortgage loan that can be used together to include closing cost assistance and down payment help to persons in certain fields.
The Hero Program is designed to offers special loans to households where at least one member is a safety worker, educator, health care worker or part of the armed forces. You do not have to be a first time homebuyer to qualify for the Hero program. The MFA Mortgage Booster program is a second mortgage product that gives down payment and closing cost assistance for buyers that can qualify for the MFA MortgageSaver loan product.
What Is The Max You Can Borrow On The Hero Program?
This would need to be determined by a lender and if needed a second mortgage may be added for up to 8% of the sales price of the property. The Hero mortgage does have a monthly payment that needs to be paid each month.
To get additional information about down payment assistance programs, or to find out more about mortgage programs please complete the information below:
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