New Mexico Mortgage Finance Authority - HomeNow Program
Financial Assistance for Homebuyers in New Mexico
HomeNow is a second mortgage loan program that is available to first-time homebuyers who have lower incomes. HomeNow must be used in conjunction with MFA’s FirstHome program. The HomeNow loan will be forgiven if the borrower occupies the home for a full 10- year period and does not sell, refinance, transfer title, rent out, or otherwise vacate the property.
Previous homeowners who have not owned and occupied a home as their primary residence in the past three years may also be eligible to use the program. Borrowers must contribute at least $500 from their own funds. The borrower contribution cannot be derived from any type of gift, grant, or down payment assistance. Homebuyer income limits and purchase price limits for the HomeNow program will vary according to county and the number of persons in the household. MFA requires a minimum credit score of 620. For buyers with no credit score, alternative credit qualification may be acceptable. All homebuyers must receive pre-purchase homebuyer counseling through MFA’s online program, eHome America, or through a HUD-approved counseling agency that has also been approved by MFA.
The HomeNow program may only be used to finance single-family residences that are located in the state of New Mexico. Properties may be a detached site-built, condominium or townhome, or a home in a planned-unit development. MFA will also finance manufactured homes that are at least double-wide, attached to a permanent foundation, and assessed as real property and that meet FHA guidelines. After purchasing a home through the HomeNow program, buyers must occupy the property as their primary residence within 60 days of closing. Properties may not be used for income generation. Business use restrictions also apply.
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but State and local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price, and income limits.
Note: All figures mentioned above were accurate at the time of publication and may no longer be current. Visit the program website for updated information
Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.
FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.
Down Payment Grants in New Mexico
The New Mexico Mortgage Finance Authority offers eligible applicants a number of mortgage programs to help them cover the down payment and closing cost assistance, as well as provide competitive interest-rate mortgage loans.
HomeNow is a second mortgage loan program that is available to first-time homebuyers who have lower incomes. This program offers eligible applicants a number of mortgage programs to help them cover the down payment and closing cost assistance.
NextHome is a combination of first mortgage loan and down payment assistance second loan that is available to first-time and non-first-time homebuyers with low and moderate incomes.
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