Nov 2, 2023 2023-19

Down Payment Assistance Interest Rate Change

Background

The New Mexico Mortgage Finance Authority (“MFA”) operates two (2) homebuyer loan programs, FirstHome (for First-time homebuyers) and HomeForward (for non-First-time homebuyers). These programs support Government (FHA, VA, USDA), Fannie Mae, and Freddie Mac products for homebuyers both at or below 80% area median income (AMI) and those above 80% AMI. These products offer rates that are often below the market rate.

In conjunction with these programs, MFA also operates two (2) down payment assistance (DPA) programs, FirstDown DPA and HomeForward DPA. Each of these programs offer the respective homebuyer the option of amortizing the cost of their down payment into a second loan. The rates offered through these DPA programs, as of Thursday, November 2, 2023, are as follows:

FirstDown DPA Rates:

HomeForward DPA Rates:

Each 10-Year rate is set at par with the rate for the Fannie Mae product for homebuyers at or below 80% AMI. Each 15-Year rate is set 50 basis points (bps) above the 10-Year rate. The 30-Year rate for the FirstDown DPA program is set 200 bps above the 10-Year rate. There is no 30-Year rate for the HomeForward DPA program.

How It Impacts You

On Monday, November 6, 2023, MFA will change the DPA program rates for each of the 15-Year offerings, from 50 bps above the 10-Year par rate to 25 (bps) above the par rate. The 10-Year offering for both programs and the 30-Year offering for the FirstDown DPA program will remain the same. Based on the rates as of November 2, 2023, MFA may anticipate the following rates on November 6, 2023 (changes in red):

FirstDown DPA Rates:

HomeForward DPA Rates:

Please note: These rates have not been set and are subject to change based on changes to the par rate.

Should you have questions please contact a member of the Homeownership Department at 505.843.6880.

Thank you for participating in MFA programs.