MFA HomeNow Program Existing Home
Best For: First Time Homebuyers, Low Down Payments, Zero Down
The New Mexico MFA HomeNow Program for existing homes provides $7,000 in assistance as a forgivable second mortgage with no monthly payments.
Program Description
The New Mexico MFA HomeNow Program helps low-to-moderate income homebuyers in New Mexico purchase an existing home by providing down payment and/or closing cost assistance. It is a deferred second mortgage that provides $7,000 and the first mortgage must be a MFA FirstHome mortgage. The program has 0% interest, no monthly payment, and is eligible to be forgiven after 10 years if certain conditions are met. The income limits for the program vary by county and household size.
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MFA HomeNow Program Existing Home
Min. Credit Score
620
Min. Down Payment
0%
Max Loan Amount
$472,030
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.
Program Benefits
Benefit type: Up to $7,000 in Assistance
Type: Deferred Payment Standard 2nd Mortgage Program - Forgivable
The MFA HomeNow assistance is forgivable if the borrower occupies the property for a 10-year period and refrains from selling, refinancing, transferring title, renting out, or vacating the property in any other way.
First Mortgage Program Option
This program can be used in tandem with the following first mortgage programs in order to help fulfill down payment requirements, pay closing costs, or provide other benefits. Learn all about how grants, bonds & 2nd mortgages work here.
- MFA FirstHome USDA Loan
- MFA FirstHome Conventional Loan - Low Income
- MFA FirstHome Conventional Loan - Median Income
- MFA FirstHome VA Loan
- MFA FirstHome FHA Loan
Pros & Cons
- Can be combined with other MFA down payment assistance programs
- Assistance is fully-forgivable after 10 years
- Flexible qualifying guidelines with perfect credit not required
- Available in all of New Mexico
- Also available for manufactured homes
- Assistance must be repaid if home is sold or loan is refinanced before 10 years
- Has lower income limits than other MFA programs
- Has lower purchase price limits than other MFA programs
- Has lower purchase price limits than HomeNow for new construction
Program Availability
MFA HomeNow Program Existing Homes are available in 1 state.
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“When down payment and/or closing cost are getting in the way of you becoming a homeowner, the MFA HomeNow Program can help you make your dream of purchasing an existing home a reality."
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
$193,000 - $366,000
Income Limit
$39,050 - $71,550
Annual Household (1-2) 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
- Down payment assistance of $7,000
- Funds may be applied towards down payment and/or closing costs
- Deferred second mortgage with 0% interest and no monthly payments
Additional Conditions
- MFA HomeNow may only be combined with a MFA FirstHome first mortgage program and other MFA assistance programs
- Only available for owner-occupied existing home properties
- Properties may not be used for generating income and business use restrictions also apply
- Borrowers must contribute at least $500 of their own funds into the home purchase (MFA guideline)
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 is 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.
No Mortgage Insurance
This program does not require Private Mortgage Insurance (PMI).
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% 2%
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.
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 Assistance Combo Loan
Best For: First Time Homebuyers, Low Down Payments, Zero Down
The New Mexico MFA Combo Program provides up to $35,000 in assistance by combining up to three MFA down payment assistance programs into one.
MFA HomeForward DPA Program
Best For: Low Credit Scores, Zero Down
The New Mexico MFA HomeForward DPA Program provides up to 3% in down payment assistance as a standard second mortgage with repayment.
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* 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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