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Mortgage rates in New Mexico
Mortgages in New Mexico
The New Mexico Mortgage Finance Authority (MFA) is a quasi-governmental agency that helps low- to moderate-income residents find affordable, quality housing. In partnership with various lenders, realtors, non-profit organizations, local governments, tribal communities and developers across the state, MFA manages an average of $4 billion in assets every year.
MFA helps homebuyers by offering mortgages with competitive interest rates and money they can put toward their down payment and closing costs. To qualify, you’ll need to meet the income and purchase price limits for your area of New Mexico.
All participants must also take part in homebuyer counseling through MFA's online program, eHome American, or through an approved counseling agency.
Whether you need a little help with your down payment, or just better interest rates on a home loan, you’ll work with one of MFA’s participating lenders to figure out what program works best for you.
More: Get a free credit score and credit monitoring from Credit Sesame.
FirstHome is a mortgage for first-time buyers who have low to moderate incomes. MFA defines a first-time buyer as anyone who hasn’t owned and occupied a home as their primary residence over the last three years.
It’s compatible with FHA, VA, USDA and HFA Preferred Conventional mortgages. To qualify, you’ll have to contribute at least $500 of your own funds and have a minimum credit score of 620. The income and purchase price guidelines vary by household size and location.
You can use FirstHome on its own or in concert with FirstDown, MFA’s down payment assistance program.
FirstDown is a fixed-rate second mortgage that can help first-time homebuyers cover their down payment and closing costs.
When you use the FirstHome program, you can qualify for a second loan of up to $8,000 that features an extended repayment term and an affordable interest rate.
The credit score and income requirements for FirstDown are the same as with FirstHome, and you’ll also have to attend homebuyer counseling.
HomeNow is a second loan for low-income first-time homebuyers who have qualified for a FirstHome mortgage. You’ll have to fall below 80% of your area’s median income.
You could borrow up to 8% of the home’s purchase price or $8,000 (whichever is lower) to help cover your down payment and closing costs.
You’ll have to contribute at least $500 of your own funds to use this program. However, the loan has a 0% interest rate and is non-amortizing. If you meet MFA’s requirements, your loan will be totally forgiven after 10 years.
More: Use these savings accounts to build up your down payment.
NextHome offers both a primary mortgage and a second one of up to 3% of your first loan, which you can use to cover your down payment and closing costs.
It’s available to both first-time and repeat homebuyers. There are no monthly payments, and the loan may be forgiven if you meet certain requirements from MFA.
Borrowers must meet income and purchase price limits. Currently, the household income limit is $91,000 and the purchase price limit is $340,000. The minimum credit score requirement is 620, and you’ll have to contribute at least $500 of your own funds. Finally, you’ll have to plan to occupy the home as your primary residence within 60 days of closing.
This assistance program is compatible with FHA, VA, USDA and HFA Preferred Conventional mortgage loans.
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