New Mexico Mortgage Finance Authority Unveils New “Next HOME” Program

It’s not just first time home buyers in New Mexico that have reason to cheer over a new program unveiled by the New Mexico Mortgage Finance Authority (MFA), but all buyers, including those who have owned a home in the previous 3 years.

Las-Cruces Sun-News reports:

Thanks to some very creative thinking on the part of the New Mexico Mortgage Finance Authority’s (MFA’s) leadership team, MFA rolled out on October 1st a new program that expands down payment and closing cost assistance to include buyers who already own a home.

The program, called Next HOME, is designed to assist current home owners who want to move up, as well as first-time buyers who don’t meet the 3-year requirement (which says that first-timers cannot have owned a home in which they lived during the 3-years preceding their purchase). According to Teri Baca, MFA Homeownership Representative, “Next HOME allows move-up buyers with annual incomes up to $75,000 to buy a home with a sales price of up to $350,000 anywhere in New Mexico”. Baca goes on to say, “If a buyer would rather retain the proceeds from the sale of their existing home rather than using them towards their next purchase, they may, since the required minimum investment from the borrower’s own funds is only $500”.

Current home owners who desire to convert their existing homes into rental properties, rather than sell them, are also eligible to purchase a replacement property under the Next HOME program. Next HOME is a combination first-mortgage loan and down payment assistance grant. The grant, equal to 3 percent of the loan amount, does not have to be repaid and may be applied to down payment, closing costs, and reserves for taxes and insurance.

Traditional first-time buyers, defined as buyers who have never before owned a home or not lived in a home (such as a rental property) that they owned for at least three years prior to purchase, can receive assistance through MFA’s First HOME program. The program provides a 30-year, fixed rate mortgage in the 4 percent range.

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