Effective October 1, 2015, MFA is pleased to announce a redesign of the Single Family Program which provides more streamlined product offerings, simplified closing and funding procedures as well as a new non-first time homebuyer program.
The new programs will feature a product for first time homebuyers (“First Home”) which can be paired with down payment assistance second mortgage loan (“First Down”) and a product for non-first time homebuyers (“Next Home”) that offers a 3.0% grant and simplified qualifying guidelines.
The First Home, First Down and Next Home programs will replace the Mortgage$aver, Mortgage Booster and HERO programs. However, the new programs will be similar in structure and much simplified in design. A brief description of each of the programs is listed below:
- First Home is for first time homebuyers and is very similar to the Mortgage$aver Zero program.
- The qualifications guidelines, documentation requirements, interest rate structure, etc. essentially mirror the Mortgage$aver Zero program.
- If you have originated a Mortgage$aver Zero loan, you already know how to originate a First Home loan.
- First Down is also for first time homebuyers and is very similar to the Mortgage Booster program.
- As you may have guessed, the qualification guidelines, documentation requirements, interest rates essentially mirror the Mortgage Booster program.
- If you have originated a Mortgage Booster loan, you know how to originate a First Down loan.
As the names imply, First Home and First Down go together. This is the MFA program that enables New Mexican’s to purchase their first home.
- Next Home provides a first mortgage and 3.0% down payment assistance grant to non-first time homebuyers or step up homebuyers.
- It is similar to the HERO and Plus programs, but does not have the first time homebuyer restriction of the Plus program or targeted occupation requirements of the HERO program.
- The program will feature a single statewide income limit and purchase price limit, regardless of family size ($75,000 income limit and $350,000 purchase price limit)
- Simple income qualification: The homebuyer’s credit qualifying income (i.e. Final DU) is the program qualifying income for Next Home.
- Reduced documentation: Since the Next Home qualifying income is based on the credit qualifying income (which has already been calculated by the lender), there is no need to submit paystubs, W-2’s, tax returns, bank statements or, verification of employment to MFA for review.
- Next Home Compliance Review packages will have less paperwork
- Next Home can be a government loan (FHA, VA, and USDA-RHS) or a conventional FNMA HFA Preferred loan.
- Next Home requires a $500 borrower contribution.
Lender Training on New Programs
In the next few days, MFA will be sending out registration information for training on the new programs. There will be a number of trainings held throughout the month of September.
Participating Lenders will be required to attend training before originating the new programs.
Training will focus on the following:
- Program guidelines, including loan reservation processes and file uploads
- Documentation requirements for the new programs
- Process for completing the MFA Application Addendum (MFA source document)
Program policies and revised Compliance Manual.
Please feel free to contact any member of the Homeownership Department if you have questions or for further clarification.
Thank you for participating in MFA’s single family program.