Oct 6, 2022 2022-22
Program Updates – Effective October 17, 2022
MFA has made updates to our programs accommodate as the state continues to observe an increasing trend in the median home sales price. The increasing cost to purchase a home is associated with continued compression in housing supply coupled with a rising interest rate environment.
All Programs Update
Effective with reservations dated October 17, 2022, and later, the requirement for borrowers to utilize at least $500 of their own funds toward down payment or closing cost has been eliminated for all single-family programs.
Effective with reservations dated October 17, 2022, and later, FirstDown maximum loan amount shall not exceed four percent (4%) of the purchase price.
This significant change is due to the previous maximum loan amount of $8,000 no longer being enough to cover the 3.5% down payment, 0.5.% origination fee and 2.5% in closing costs for the current average home price in New Mexico.
Effective with reservations dated October 17, 2022, and later, HomeNow maximum loan amount shall be fixed at $7,000.
Although the loan amount for HomeNow has gone down, MFA will be able to serve more first time homebuyers whose income falls at or below 80% median income AMI from our Federal Funds.
Targeted Area Census Tract Update
The Federal Targeted Census Tracts list in our system will be updated to reflect the new census tracts. New census tracts will be effective with reservations dated October 17, 2022, and later.
The maps for the individual census tracts will no longer be published on the MFA website. Lenders may use the Geocode Map link.
Lender Training Web-ex
MFA will be scheduling several lender training web-ex sessions to review the changes. Please see the MFA website and notifications will also be provided by Eunice and Teri, MFA’s Homeownership Representatives.
We appreciate your understanding and continuing support.
Should you have questions please contact a member of the homeownership department at 505.843.6880.
Thank you for participating in MFA programs.