Tax Credit Loan Program From New Mexico Mortgage Finance Agency

New Mexico Mortgage Finance Agency has a Tax Credit Loan Program for eligible first time home buyers. The New Mexico Tax Credit Loan Program was created to allow first time buyers in New Mexico take early advantage of their federal home purchase tax credit as authorized by the Obama Administration with the American Recovery and Reinvestment Act of 2009.

MFA Tax Credit Loan Program Guidelines

If you are a first time home buyer the MFA Tax Credit Loan Program can provide you with a second mortgage loan of up to 8 percent of the sales price or $6,500, whichever is less. This loan must be used to cover the down payment and closing costs associated with buying your first home.

The intention of the short term tax credit loan program is that pay the second mortgage loan off with your federal home purchase tax credit that you will receive once you file your 2009 tax return in 2010 and get your tax refund. See: $8000 Tax Credit For Buying Your First Home to learn more about the Federal home purchase tax credit and to see if you qualify for it.

As long as you pay off the Tax Credit Loan before to June 30, 2010, you will not have to pay any interest on the loan or make any payments. However, if you do not pay off the Tax Credit Loan by June 30, 2010, your loan will convert to a 30-year, fixed rate second mortgage and you will begin making monthly payments on it.

You must use the Tax Credit Loan Program with a MFA first mortgage loan program. These programs are offered through MFA approved participating lenders.

You are a considered a first time home buyer is you have not owned a home for the past three years.

You can use this program to purchase a home in any part of New Mexico.

Combine the Tax Credit with MFA First Mortgage Programs
If your income is at or below 115 percent of the area media income you may also be eligible for additional MFA below market mortgages and down payment assistance programs. To qualify for a low-interest mortgage and down payment assistance, your income be at or below 115 percent of the area median income, or $64,285 if you have a family of three in the Albuquerque area. Check with your loan officer or approved housing counselor to see if you qualify.