MFA FirstHome Conventional Loan - Low Income
Best For: First Time Homebuyers, Low Down Payments
Conventional loan for low income New Mexico homebuyers with below market interest rates, low mortgage insurance, and down payment assistance options.
This loan program is not available in Spalding County, GA
Program Description
30-year fixed rate Conventional mortgage from the New Mexico MFA for first time homebuyers. This loan may be combined with the MFA's FirstDown, HomeNow and other down payment assistance programs. This loan program requires that the borrowers make less than 80% AMI (Area Median Income)—limits which vary by county and are significantly lower than the standard New Mexico MFA income limits. The main benefit of this program is below market interest rates and less mortgage insurance coverage required.
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MFA FirstHome Conventional Loan - Low Income
Min. Credit Score
620
Min. Down Payment
3%
Max Loan Amount
$726,200
Qualification variables shown here are for 1-Unit Primary Residences, and loan amount ranges vary based on US County. Register Now to see if this loan program is a good fit for you, find your county limits, and find more options for purchasing a home.
Pros & Cons
- 3% down payment can be covered by an assistance program
- Deferred payment options for down payment assistance
- Also available for manufactured homes
- Available in all of New Mexico
- 80% AMI income limit restrictions apply
- Only available for 1-unit primary residences
- Requires private mortgage insurance (PMI)
Program Availability
MFA FirstHome Conventional Loan - Low Incomes are available in 1 state.
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“The main benefit of this conventional option is the lower mortgage insurance coverage requirement and below market interest rates offered by the New Mexico MFA."
Occupancy & Property Types
Qualification factors for this program can vary based on how you intend to occupy the property and what type of property you are purchasing. By registering for a free account , you can check program limits for all property and occupancy types.
Occupancy Types
Available Property Types for Primary Residence
Income & Purchase Price Limits
Your Debt-to-Income Ratio (DTI), as well as purchase price and income limits, are important factors when qualifying for a home loan program. By registering for a free account , you can find the exact program limits for this program and others in your area and for your unique scenario.
Debt-to-Income Limit
50.00%
Purchase Price Limit
$349,526 - $440,480
Income Limit
$43,360 - $133,680
Annual Qualifying Income
Qualification variables shown here are for 1-Unit Primary Residences, and loan limit ranges vary based on US County. Amounts may be rounded. Exact amounts can be accessed by registering for a free account.
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Key Features
- Conventional loan program option from MFA with lower income limits
- Below market interest rates and lower mortgage insurance coverage
- Can be combined with MFA's down payment assistance programs
Additional Conditions
- Homebuyer education is required for all first time homebuyer(s), including co-borrower(s)
- Borrowers must contribute at least $500 of their own funds into the home purchase (MFA guideline)
- Non-occupant co-borrowers are allowed
Other Limitations
In some circumstances, there are specific requirements you must meet or homebuyer education courses you must attend in order to be eligible for the loan program.
No other program limitations
A Homebuyer Education Class may be required for this loan program.
Class Name: eHome's 8-Hour Homebuyer Education or Other
Homebuyer education is required for all first time homebuyers, including co-borrowers. Buyers must complete a homebuyer counseling course through eHomeAmerica or another HUD-approved housing education provider.
Mortgage Insurance & Fees
Most mortgage programs require mortgage insurance when you are financing more than 80% of the purchase price or appraised value. Some programs may also have an associated funding fee, paid at the time of closing, or an annual fee. Learn all about the different fees here.
Required with less than 20% Down Payment
Type: Private Mortgage Insurance (PMI)This program requires Private Mortgage Insurance (PMI) if you are putting down less than 20% on the home you are purchasing or refinancing.
Type: No Funding Fee
This program does not have a funding fee.
Type: No Annual Fee
This program does not have an annual fee.
Estimated Closing Costs: 2.5%
These amounts are just an estimate. Your closing costs include things like loan origination fees, discount points, appraisal fees, title insurance, taxes, deed recording fees, and other charges.
Grants, Bonds & 2nd Mortgages
There are certain programs that can be combined with this MFA FirstHome Conventional LI program to help cover all or a portion of your down payment and closing costs, or provide additional borrower benefits.
MFA FirstDown Program
|MFA FirstHome Conventional LINew Mexico MFA FirstDown Program provides up to 4% in down payment assistance as a standard second mortgage with repayment.
Max. Loan Amount
$726,200
Min. Credit Score
620
Min. Down Payment:
0%
MFA HomeNow Program New Construction
|MFA FirstHome Conventional LIThe New Mexico MFA HomeNow Program for new construction provides $7,000 in assistance as a forgivable second mortgage with no monthly payments.
Max. Loan Amount
$726,200
Min. Credit Score
620
Min. Down Payment:
0%
Similar Loan Programs
If you think this home loan program may be a good fit for you, you may also want to check out the following programs that share many similarities with the current program.
MFA FirstHome FHA Loan
Best For: First Time Homebuyers, Low Down Payments, Lowest Rates
FHA program for New Mexico first time homebuyers with competitive interest rates and down payment assistance options.
MFA HomeForward Conventional Loan - Low Income
Best For: Low Down Payments, Low Credit Scores
Conventional loan for low income New Mexico homebuyers with below market interest rates, low mortgage insurance, and down payment assistance option.
Related Resources
Knowing Your Mortgage Insurance Options (Conventional Loan PMI)
PMI is an important part of getting a mortgage, but it can vary in cost. Learn about the different types and what you should consider when budgeting for it here.
Read More
First Time Homebuyer Guide
Being a first-time homebuyer has its fair share of challenges. One of your biggest obstacles will be competing against other new or seasoned buyers. While bidding wars have tapered since the previous buying season, they can still occur.
Read More
Calculate Income Limits Using Area Median Income
Income limits are used to determine whether or not a home buyer is eligible for certain mortgage programs, including down payment assistance programs or incentives that can help make home buying more affordable. It identifies the maximum income level set by each housing authority for its program participants, and varies from county to county across the US. Often, the tool used to establish this maximum income level is often called Area Median Income, or AMI.
Read MoreVisit our Mortgage Education Center for more resources.
* Some loan programs may not be offered by all featured lenders of ReviewMyMortgage.com and qualification guidelines may vary between them. Our team makes their best effort to keep loan program information up to date. Loan programs may change without warning. ReviewMyMortgage.com does not guarantee or offer any loan products. ReviewMyMortgage.com is strictly an educational resource hub for consumers
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