Feb 3, 2025 2025-03

Release of HomeNow Replacement Funds

Dear Participating Lenders:

Housing New Mexico | MFA is happy to announce the release of limited replacement funding for the HomeNow Program totaling $430,000.

These replacement funds retain the same loan terms as the original HomeNow program. HomeNow loans are zero percent, non-amortizing loans in the amount of $7,000 with no monthly payment. These funds will be available with reservation/locks dated February 18, 2025.

The HomeNow loan is to be used in conjunction with the FirstHome Program as a second mortgage.  The borrower is still eligible to use the FirstDown Plus 15 as a third mortgage. Please note the borrower will not be eligible to use FirstDown in the structuring of the loan when utilizing HomeNow.

These funds have been made available from loan payoffs, therefore there are specific guidelines for the use of these funds which Housing New Mexico |MFA staff will determine the availability of funds.

As an explanation as to why these funds are different from previous HomeNow funds; Housing New Mexico is following guidelines from Treasury (“Capital Magnet Fund (CMF) Award”) regarding the use of funds as replacement loans:

• Any Affordable Housing resulting from Program Income (paid off loans) shall be subject to a ten-year (10-year) affordability period beginning on the date that the project (home) achieves initial occupancy.  If the loan is paid off during the 10-year affordability period, it must be replaced to complete the 10-year period.

To access the funds, the lender will submit lock requests in PowerLender. Housing New Mexico | MFA staff will determine the property eligibility. Please allow one full business day for lock confirmation; Housing New Mexico| MFA will honor the rate of the first lien for the day the lock request was submitted if received within lock desk hours of operation and loan is clear of any other lock denial reasons. 

See HomeNow Replacement Program Sheet located on Housing New Mexico | MFA Website Program Policies.

Should you have any questions, please contact a Housing New Mexico | MFA homeownership representative at 505.843.6880 or by email: singlefamily@housingnm.org.

Thank you for participating in Housing New Mexico’s programs.