MFA's Mortgage$aver Program offers below-market interest rates and/or closing cost assistance to first-time homebuyers. First-time homebuyers are individuals who have not owned a home (including a manufactured home on a permanent foundation) in the last three years. A borrower may qualify for a Mortgage$aver, Mortgage$aver Zero, Mortgage$aver Xtra or Mortgage$aver Plus funds based upon household income and family size as well as the sales price of the home.
Mortgage loans available under the Mortgage$aver program include FHA, VA, and a variety of conventional loans, including the MyCommunity and Community Solutions Programs. Rural Housing Service (RHS) guaranteed, leveraged, or direct loans are also available as are loans on Native American trust lands.
What Does the Mortgage$aver Program Mean to Your Clients?
Savings! The low Mortgage$aver and Mortgage$aver Xtra rates mean lower monthly mortgage payments. The Mortgage$aver Zero and Mortgage$aver Plus programs
save the borrower money because they are not required to pay an origination or loan discount fee at loan closing, leaving more money in the borrowers pocket. The Mortgage$aver Plus program also provides the borrower with a grant (that does not have to be repaid) to help reduce the need for up-front cash at closing.
About the Mortgage$aver, Mortgage$aver Zero, Mortgage$aver Xtra and Mortgage$aver Plus Programs
Mortgage$aver loans are 30-year fixed-rate loans available at rates below the 30-year fixed “market” rate. Mortgage$aver Zero is just about even with the 30-year fixed “market” rate, but has no origination fee or discount fee. Mortgage$aver Xtra features a deeply discounted interest rate for very low income borrowers (at or below 50% of Area Median Income {AMI}). The Mortgage$aver Plus interest rate is slightly higher than the 30-year fixed “market” rate, but has no origination fee or discount fee and features a 3.0% (of the total loan amount) down payment assistance grant “built-in” to the loan. The grant can be used towards down payment, closing costs, and prepaid expenses. It can also fund an interest rate buydown cost, VA funding fee, FHA upfront mortgage insurance premiums, or reduce the principal loan balance.
Others Ways to Help with Up-Front Costs
MFA has many second mortgage programs that may be available to buyers using the Mortgage$aver and Mortgage$aver Zero and Mortgage$aver Xtra programs. These second mortgage programs may substantially reduce the borrowers’ “up-front” or“out-of-pocket” cash requirements.
Income limits for MFA second mortgage programs may differ from the Mortgage$aver program income limits.
How Does a Borrower Quailify for the Mortgage$aver Program?
A professional MFA-qualified mortgage lender will review the borrowers monthly income, expenses, employment situation, and credit report so that they can determine if the borrower is eligible for the Mortgage$aver, Mortgage$aver Zero, Mortgage$aver Xtra or Mortgage$aver Plus programs. The lender will also determine the amount of down payment/closing cost assistance needed by the borrower and will recommend, if necessary, the appropriate second mortgage or grant program.
How Does a Borrower Qualify for the Mortgage$aver Program?
A professional MFA-qualified mortgage lender will review the borrowers monthly income, expenses, employment situation, and credit report so that they can determine if the borrower is eligible for the Mortgage$aver, Mortgage$aver Zero or Mortgage$aver Plus program. The lender will also determine the amount of down payment/closing cost assistance needed by the borrower and will recommend the appropriate second mortgage or grant program.
Where to Apply?
Mortgage$aver, Mortgage$aver Zero and Mortgage$aver Plus are available through a statewide and on Indian Reservations network of participating lenders.
Current gross annual household income may not exceed limits listed below unless the borrower is planning to purchase a home in a targeted area. See Targeted area limits below.
Residences financed can include single-family detached homes, town homes, condominiums, homes in planned unit developments, and permanently attached manufactured homes. Total home sales price may not exceed the limit listed below, unless they are in a targeted area. See Targeted area limits below.
Mortgage$aver Program Limits For Federally Targeted Areas
Household income and home sales price limits apply to specific census tracts located within certain areas of the state referred to as “targeted areas.” These targeted area census tracts are listed below. Borrowers purchasing homes in these areas do not have to be first-time homebuyers. All other program guidelines apply.
Income Limits for Targeted Areas
COUNTIES
by family size
1
2
3
4
5
6
All Other Areas and Counties of the State
$55,920
$55,920
$65,240
$65,240
$65,240
$65,240
Bernalillo
$67,080
$67,080
$78,260
$78,260
$78,260
$78,260
Home Sales Price Limits for Federally Targeted Areas
