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MFA Launches $25,000 Grant Program to Provide Additional Down Payment and Closing Cost Assistance

MFA Launches $25,000 Grant Program to Provide Additional Down Payment and Closing Cost Assistance

ALBUQUERQUE, NM—The New Mexico Mortgage Finance Authority (MFA) recently launched the DownPaymentAdvantage grant program, a program which provides a $25,000 grant, that doesn’t need to be repaid, to assist qualified low-income homebuyers with the down payment and closing costs on a home.

“These are some of the largest grants we’ve offered to help make the dream of homeownership a reality for families across New Mexico,” said MFA Executive Director/CEO Isidoro Hernandez. “Given the rising interest rates and housing shortage, this program was designed to give families some additional support during the homebuying process.”

The grant must be used in combination with MFA’s FirstHome mortgage program and can also be used with the FirstDown and HomeNow down payment assistance programs. Homebuyers who use the grant with other MFA programs can get up to $35,000 in total down payment and closing cost assistance if they qualify and meet all program eligibility requirements.

Qualified borrowers must use the full $25,000 grant within the purchase transaction and may not receive any grant funds back at closing. Any excess grant funds can be used as additional down payment on the first mortgage, if needed.

All loans combined with other MFA programs must adhere to all program eligibility requirements.

Since the grant program has a limited pool of funding, grants will be provided on a first come first served basis until the grants program funding runs out.

In 2022, MFA provided $430.4 million in loans and $15.8 million in down payment assistance to more than 2,000 homebuyers.

For more information about MFA, visit: housingnm.org/homebuyers