Primero Loan Program
MFA's Primero Loan Program is a flexible, low cost loan program created to finance the development of affordable rental or special needs residential facilities that would be considered "high risk" by traditional lenders. The purpose of the program is to leverage other public and private funds and to expand the housing development capacity of New Mexico's nonprofit, tribal and public agency housing providers.
Eligible Projects and Programs
Funding may be approved for specific housing developments or for programs to be operated by agencies to meet local housing needs. Owner-occupied projects of any size maybe financed under this program, during any stage of the development process. Public and tribal agencies, for-profit and nonprofit sponsors are all eligible. Applicants must provide evidence of businesslike organizational operations, as well as experience in housing development or partnership with an experienced development team.
- Pre-development application - Primero Loan Program funding for pre-development expenses such as environmental assessments, appraisals, title searches/insurance, architectural and engineering fees, or market studies.
- Homeownership development application - Funding for the acquisition, construction, or rehabilitation of single-family homes to be owned by income qualified household.
- Land banking credit application - A line of credit for the acquisition of property for the development of affordable housing projects. This opportunity is only available to qualifying nonprofit, public, and tribal housing development entities. Applicants must demonstrate: a proven ability to process a piece of land through the development process; ability to move quickly on development; and a history of completed housing developments. They must also provide a business plan that supports housing development activities to be eligible for this opportunity.
Applicants should provide all items listed on the appropriate application checklist.
Development loans will be underwritten and structured according to sound lending practices. Interest rates are typically below-market and are determined at MFA's discretion. Primero loans are repaid through subsequent financing sources or in some cases through cash flow. Terms cannot exceed five years, but loans do not have to be amortized during their term. Loans are secured whenever possible, but they may be subordinated to other debt. The maximum loan amount is $1 million, and availability of funds varies.
How To Apply
Application forms can be obtained from MFA and submitted at any time. Complete applications are processed and approved within 60 days. All loans are reviewed by staff and loans above a prescribed amount will be approved by the MFA Board of Directors. Discussions with staff are recommended prior to preparation of applications in order to identify appropriate application materials and make initial eligibility determinations.