New Mexico Homeownership Assistance & New Home Buyer Program Info
For first-time buyers, purchasing a home can be daunting. But New Mexico first-time homebuyer programs provide invaluable assistance that may allow them to avoid paying expensive upfront expenses such as down payments.
New Mexico Mortgage Finance Authority
The New Mexico Mortgage Finance Authority (MFA) is a self-sustaining quasi-governmental agency, operating on its own without government support that offers quality affordable housing to low and moderate-income New Mexicans. The agency is overseen by an 11-member Board of Directors composed of governor-appointed officials as well as community leaders from across the state.
NMFA’s First Home program gives new homebuyers an option for an FHA, VA, USDA or HFA Preferred conventional loan with as little as a 3% down payment and includes pre-purchase counseling as well as credit score requirements. But you must call them before you’re ready to buy a new home as you’ll want all your questions asked. To become eligible for this statewide homeownership assistance program they must complete MFA’s online homebuyer’s education course as part of this statewide homeownership assistance initiative.
NMFA also offers the MFA HOMENow program, offering eligible families a forgivable second mortgage to cover home buying expenses. Income and purchase price limits differ by county and household size – in order to be eligible, applicants must meet both income and purchasing price limitations while also possessing at least a 620 credit score.
The Good Neighbor Next Door program provides teachers, police officers and emergency health technicians wishing to purchase homes in revitalization zones an outstanding option for purchasing real estate. Eligible teachers, firemen and EMTs qualify for a 50% discount off the listing price of single-family homes located within revitalization zones; this offer applies only when meeting certain criteria such as having at least a 620 credit score and contributing at least $500 towards the purchase price.
NMFA also offers the Home Rehabilitation program to assist eligible households renovate their homes by covering up to 80% of the costs minus the estimated market value of the property. This helps cover various improvements such as compliance with applicable codes and standards, essential home repairs, energy-related upgrades, lead paint hazard reduction, accessibility for disabled persons as well as accessibility of housing units for the elderly.
Habitat for Humanity
Habitat for Humanity, a nonprofit organization dedicated to building simple, affordable homes for families in need, envisions a world in which everyone has a decent place to call home and relies on donations and volunteer labor for its work. Many churches and houses of worship in New Mexico sponsor Habitat’s efforts locally while companies that value good corporate citizenship provide financial support as well. Private individuals such as musicians, politicians and celebrities volunteer their time helping construct or repair houses through Habitat’s efforts.
Habitat for Humanity also works with existing homeowners who need help paying their mortgages or reducing housing costs. Through its Mortgage Payment, Tax, and Insurance Assistance program (MPTIA), up to $30,000 of mortgage payments, taxes, and insurance premiums may be covered per household.
Habitat for Humanity operates over 170 affiliates in the US alone. Their global advocacy program, Solid Ground, covers four sub-themes – secure tenure, gender equality, and slum upgrading and disaster resilience. Solid Ground works towards changing land policies and systems globally while making significant strides towards increasing access to affordable, safe housing options for everyone.
U.S. Department of Agriculture Rural Housing
The USDA provides homeownership opportunities through various direct loans guarantee and grant programs administered through local and State rural development offices. They can answer questions regarding individual programs as well as help you select one that may best meet your needs.
New Mexico boasts several homebuyer assistance programs for first-time homebuyers. One such program, MFA First Home (www.hud.gov/newmexico/homeownership/buyingprgms) gives first-time buyers access to deferred and forgivable loans to cover closing costs and down payments, with repayment deferred until living in their primary residence for an agreed upon amount of time.
Find out more about statewide programs such as these by consulting a real estate agent or visiting the Mortgage Finance Agency website. Generally, to qualify for these programs you’ll need to meet certain income, family size and location criteria as well as complete a pre-purchase homebuyer education course and have at least a 620 credit score.
Native American Program
Homeownership can be an excellent investment, and for Native American home buyers there are government programs tailored specifically to assist with home purchasing. These programs include aid for down payments and mortgage payments as well as homebuyer education courses and affordable housing initiatives. While these programs are open to people of all ages they particularly cater to families living on low incomes and in rural communities.
The BIA Housing Improvement Program is a safety net for Native American households that assist them in renovating, repairing or building new homes as well as counseling prospective homebuyers. To apply, submit a signed application to your tribal office as well as submit a Tribal Annual Performance Report (TAPR), an Excel template that establishes scoring priorities. Tribal offices must submit this report by December 31 of every year to their appropriate BIA agency or regional office.
Native American Direct Loan Program is another homeownership assistance option available through the government that can assist homeowners by providing loans backed by it to purchase or improve properties on federal trust land. Individuals, tribes, Alaska villages or Tribally Designated Housing Entities are eligible to make use of these loans.
Homeownership can be challenging for many people, and even more so for Native Americans. Due to lack of creditworthiness, they don’t qualify for conventional mortgages; however, there are various solutions that may help. Many private lenders now provide low down payment loans specifically designed to support first-time buyers.