Sep 4, 2018 18-14
New DPA program announcement: HomeNow
MFA is pleased to announce the release of our new down payment assistance program, HomeNow. Reservations for HomeNow will be accepted beginning at 9:00am MDT on September 4, 2018.
HomeNow is a second mortgage loan available to first-time homebuyers with income at or below 80% AMI. It is a zero-percent, non-amortizing loan, meaning that no monthly payments are required. The loan will be forgiven after the ten-year maturity date, provided that the borrower continues to occupy the home and does not refinance, transfer title, sell, rent or otherwise vacate the residence for a full ten years. The complete forgiveness terms are outlined in the note and mortgage, samples of which may be viewed on our website.
HomeNow must be used in conjunction with MFA’s FirstHome (first mortgage) loan. Lenders are responsible for following all applicable regulatory guidelines with respect to required disclosures. A $100 origination fee and applicable recording fees may be charged.
The HomeNow note and mortgage are MFA-specific and will print directly from MFA’s loan reservation system subsequent to receiving compliance approval. The loan will close in lender’s name and be funded by the lender.
In instances where the FirstHome loan is FHA-insured, it will be necessary to have the borrower execute the HUD Rider at closing. For information about the HUD Rider, refer to Lender Memo No. 18-12, issued on August 10, 2018. View here: http://www.housingnm.org/lender_memos/view/urgent-new-closing-document-hud-second-mortgage-rider
Income limits for HomeNow are determined by county and number of persons in household. The chart is contained in the attached Program Policy. Acquisition cost limits are also outlined in the Program Policy. Please note that income and purchase price limits are based on lesser published amount from either HomeNow or FirstHome. Lenders will need to perform a side-by-side comparison in order to assure that the correct income and purchase price limits are applied.
MFA is hosting a special webinar training for the Home Now down payment assistance (DPA) program.
This training is designed for staff whose duties involve originating, processing, closing MFA loans.
HomeNow DPA Programs Webinar Training Date:
- Wednesday, September 06, 2018 3:00 – 3:30 PM MDT
- Tuesday, September 18, 2018 10:00 – 10:30AM MDT
To Participate:
Register via the MFA lender training link http://www.housingnm.org/lender-training.
In order for MFA to e-mail registered individuals the training materials and to track attendance, please register no later than 5 pm MDT on the business day prior to the training.
The HomeNow Job Aid is available on MFA’s website. The Job Aid provides a concise recap of program requirements. It is intended for use ONLY by lenders and real estate professionals. MFA will not provide a consumer marketing piece for this program as lender are responsible for meeting consumer disclosure requirements.
Thank you for participating in MFA’s programs. Should you have any questions, please contact your MFA Homeownership Representative directly or the office at 505-843-6880.
