MFA Offers Below Market Interest Rate for New Mexicans Entering Housing Market
The New Mexico Mortgage Finance Authority (MFA) offers mortgage interest rates as low as 5.875%* for the FirstHome Government mortgage loan program, which has shown to be substantially lower than current market rates. FirstHome is a mortgage loan program available to first-time New Mexico homebuyers that have low and moderate incomes. Under this program, first-time homebuyers are defined as buyers who have not owned and occupied a home as their primary residence in the past three years.
A 2022 statewide housing study commissioned by MFA revealed that rising prices make it difficult for renters to attain homeownership. Home values within New Mexico have closely followed trends in the United States, although income growth has failed to match. Home values increased significantly beginning in 2020, which has benefitted existing homebuyers but creates barriers to entry for others.
“Higher interest rates and increased sale prices have made it challenging for first-time homebuyers to enter the homeownership market, MFA’s lower interest rates and attractive down payment assistance programs can make all the difference in these current market conditions,” said Isidoro Hernandez, MFA’s Executive Director/CEO.
Lizzy Ratnaraj, MFA’s Chief Financial Officer, added, “MFA makes lower-interest loans than conventional lenders because we can raise money using tax-exempt mortgage revenue bonds. The lower mortgage rate allows MFA to fulfill our mission of providing loans to first-time low-to-moderate-income homebuyers. MFA is constantly exploring ways to alleviate some of our target borrowers’ inflationary and borrowing pressures.”
After purchasing a home using the FirstHome program, buyers must occupy the property as their primary residence within 60 days of closing. Homebuyer income and purchase price limits for the FirstHome program will vary according to county and the number of persons in the household. For example, a household of three or more in Bernalillo County can have an annual income of up to $91,713 and purchase a home with a price of up to $349,526.
The program can be utilized as a stand-alone first mortgage loan or in conjunction with any of MFA’s down payment assistance programs, including the FirstDown second mortgage. FirstDown provides up to 4% of the home sales price to assist with down payment and closing costs. This flexibility affords future homeowners greater buying power in this competitive and fluctuating housing market. The New Mexico Mortgage Finance Authority (MFA) assists New Mexicans across the state in building housing equity and securing a place to call their own.
For more information about FirstHome, FirstDown, MFA-approved participating lenders and updated interest rates, please visit: https://housingnm.org/
(*rates are subject to change at any time without notice. APR 6.708%)