1
Revised 10/14/2022
HomeNow Down Payment Assistance Program Policy
October 17, 2022
Program Description:
The HomeNow Down Payment and Closing Cost Assistance Program (the “HomeNow DPA Program”) is
designed to assist low-income first-time homebuyers in purchasing a home. The program promotes
statewide partnerships among MFA Participating Lenders and non-profit/public housing agencies and will
help in offering increased access to homeownership for borrowers in communities that typically have
limited access to affordable financing options.
Eligible Mortgage Lenders:
Mortgage Lenders must be approved by MFA (“Participating Lender”) to originate HomeNow DPA Pro-
gram loans. MFA maintains a list of Participating Lenders on the MFA website (www.housingnm.org
).
Eligible HomeNow DPA Program Loans:
HomeNow DPA Program loans may only be used to finance the minimum down payment and eligible
closing costs. Eligible closing costs may include but are not restricted to “reasonable and customary”
lender fees (underwriting, document preparation, processing, etc.), mortgage insurance premiums, pre-
paid interest, property taxes, homeowners/flood insurance, title insurance policies/premiums, appraisals
and home inspections. The HomeNow Program loan must be made in conjunction with MFA’s FirstHome,
federally insured (FHA, VA, and USDA Rural Development Guarantee) or privately insured (FNMA’s HFA
Preferred
TM
) first mortgage programs.
Availability of Funds:
HomeNow DPA Program funds are limited and may be reserved on a first come, first served basis in con-
junction with a FirstHome Program loan through an MFA approved participating lender. A portion of these
funds will be set aside for use in rural communities and economically distressed census tracts. Reserva-
tions of funds are made through MFA’s online reservation system, which can be accessed on MFA’s web-
site (www.housingnm.org/lenders_realtors/online-reservations
). Program funds are exclusively available
to borrower(s) whose household income is at or below 80 percent of AMI.
Eligible Borrowers:
The Annual Household Income must not exceed the applicable maximum limit as detailed in the Home-
Now Income Limits (Exhibit A). The HomeNow Income Limits are limited to eighty percent (80%) AMI in
all areas of the state, adjusted for family size.
• The HomeNow DPA Program requires the borrower to be a first-time homebuyer.
• The HomeNow DPA Program is not eligible for any income limit waivers associated with other
MFA programs as allowed in Target Area Census tracts, for example.
• Minimum credit score of 620.
• Homebuyers must occupy the property within 60 days of closing.
2
Revised 10/14/2022
Property Eligibility:
All areas of the state, including Federally Designated Tribal Land, are eligible for the program.
• Properties must be owner-occupied, Single family residences.
• Property types eligible for financing under the HomeNow DPA Program include Single family de-
tached properties, townhomes, condominiums, homes in Planned Unit Developments and man-
ufactured homes on permanent foundations.
• Properties financed with the HomeNow DPA Program must not exceed the lesser of the purchase
price limits set forth in Exhibit A of the HomeNow Program Policy or the acquisition cost limits set
forth in Exhibit A of the FirstHome Program Policy.
Interest Rate and Terms:
HomeNow DPA Program loans are zero percent (0%) interest rate, non-amortizing 10-year maturity loans
due on sale, refinance, or transfer of the property. The principal loan balance is forgiven in the eleventh
year from the date of the note. If the property is sold within the 10-year affordability period, the new
borrower may qualify to receive a loan under the same program and terms. HomeNow DPA Program
loans do not carry a prepayment penalty.
Fees:
Participating Lenders may charge the borrower an origination fee of one hundred dollars ($100.00) in
conjunction with HomeNow DPA Program loan. Other allowable fees that may be charged in conjunction
with this loan program include the recording fees, mortgagee title insurance policy premiums and settle-
ment/closing fees.
MFA, as administrator, may charge additional fees to release the mortgage at time of payoff. No other
fees may be charged in conjunction with the HomeNow DPA Program loan.
Maximum Loan Amount:
HomeNow DPA Program loan amounts are a fixed $7,000.
When combined with other MFA administered funds, maximum DPA assistance is not to exceed $35,000.
Pre-Purchase Housing Counseling:
Homebuyer counseling is required for all first-time homebuyers (“FTHB”) including co-borrowers. FTHB
must complete a homebuyer counseling course through eHomeAmerica or another HUD approved hous-
ing counseling agency. (Certificates from Mortgage Insurance Companies are not acceptable).
Homebuyer counseling is not required for Co-signers.
3
Revised 10/14/2022
Affordability Period:
HomeNow DPA Program loans require a minimum affordability period of 10 years. Homebuyers must
agree to reside in the property for the duration of the period of affordability, or until there is a sale or
other transfer of ownership of the property. Should the homebuyer cease to reside in the home as a
principal residence (by vacating, selling, or renting the unit) during the period of affordability, then the
full amount of the HomeNow DPA Program loan will be due and payable immediately. MFA, at its discre-
tion, will take legal action to enforce the residency requirement.
http://www.housingnm.org/
Loan Closing:
The Mortgage Loan must close in the Lender’s name on MFA’s HomeNow DPA Program Note and
Mortgage. The Lender must use MFA’s MERS #1013401 to assign the mortgage to MFA via MERS.
The Note must be endorsed to New Mexico Mortgage Finance Authority it’s successors and or assigns.
• The Lender must ensure that the HomeNow DPA Program loan meets all applicable program
guidelines and has been Compliance Approved by MFA prior to the loan closing.
The HomeNow DPA Program loan must be closed according to the terms specified in the Compliance
Approval/Purchase Commitment (“Commitment”) and the Closed Loan File delivered to the Contract
Service Provider prior to the Final Mortgage Loan Purchase Date as specified on the Commitment. The
Closed Loan Checklist outlines the documents that must be submitted by the Lender. Failure by the
Lender to submit the required documentation prior to the purchase expiration date may result in
MFA’s determination that the loan is not eligible for the program or MFA will charge a fee to the Lender
for an extension or the loan may be purchased from the Lender on a worst case, Mark-to-Market basis.
In these cases, MFA will not be obligated to authorize the Contract Service Provider to purchase the
loan.
Funding:
HomeNow DPA Program loans must be delivered to and purchased by the Contract Service Provider
via Lender Connection prior to the Final Mortgage Loan Purchase Date as specified on the Commit-
ment. The Closed Loan Checklist outlines the documents that must be submitted by the Lender. In
addition, if at the time the Closed Loan File is reviewed, and the HomeNow DPA Program Loan is found
to be ineligible MFA will not be obligated to authorize the purchase of the loan.
Servicing:
MFA will service all HomeNow DPA Program loans.
4
Revised 10/14/2022
EXHIBIT A
HomeNow DPA Program Income Limits (80% AMI)
Effective October 7, 2022 *Source HUD
HomeNow DPA Program income eligibility is based on either HUD’s HOME published income and purchase price
program guidelines or MFA’s Amended New Mexico Annual Action Plan limits. The HomeNow DPA Program is re-
served for families falling in the 80 percent or less area median income (AMI) for the respective county as published
annually for the HOME program. HUD publishes the HOME income guidelines annually between May and June. The
limits below reflect 2022 figures.
County
Number of People in the Household
1
2
3
4
5
6
7
Bernalillo County
$ 42,300
$ 48,350
$ 54,400
$ 60,400
$ 65,250
$ 70,100
$ 74,900
$ 79,750
Catron County
$ 34,200
$ 39,050
$ 43,950
$ 48,800
$ 52,750
$ 56,650
$ 60,550
$ 64,450
Chaves County
$ 34,200
$ 39,050
$ 43,950
$ 48,800
$ 52,750
$ 56,650
$ 60,550
$ 64,450
Cibola County
$ 34,200
$ 39,050
$ 43,950
$ 48,800
$ 52,750
$ 56,650
$ 60,550
$ 64,450
Colfax County
$ 34,200
$ 39,050
$ 43,950
$ 48,800
$ 52,750
$ 56,650
$ 60,550
$ 64,450
Curry County
$ 34,200
$ 39,050
$ 43,950
$ 48,800
$ 52,750
$ 56,650
$ 60,550
$ 64,450
De Baca County
$ 36,050
$ 41,200
$ 46,350
$ 51,500
$ 55,650
$ 59,750
$ 63,900
$ 68,000
Dona Ana County
$ 34,200
$ 39,050
$ 43,950
$ 48,800
$ 52,750
$ 56,650
$ 60,550
$ 64,450
Eddy County
$ 45,650
$ 52,200
$ 58,700
$ 65,200
$ 70,450
$ 75,650
$ 80,850
$ 86,100
Grant County
$ 34,550
$ 39,450
$ 44,400
$ 49,300
$ 53,250
$ 57,200
$ 61,150
$ 65,100
Guadalupe County
$ 34,200
$ 39,050
$ 43,950
$ 48,800
$ 52,750
$ 56,650
$ 60,550
$ 64,450
Harding County
$ 34,200
$ 39,050
$ 43,950
$ 48,800
$ 52,750
$ 56,650
$ 60,550
$ 64,450
Hidalgo County
$ 34,200
$ 39,050
$ 43,950
$ 48,800
$ 52,750
$ 56,650
$ 60,550
$ 64,450
Lea County
$ 38,600
$ 44,100
$ 49,600
$ 55,100
$ 59,550
$ 63,950
$ 68,350
$ 72,750
Lincoln County
$ 37,150
$ 42,450
$ 47,750
$ 53,050
$ 57,300
$ 61,550
$ 65,800
$ 70,050
Los Alamos County
$ 62,600
$ 71,550
$ 80,500
$ 89,400
$ 96,600
$ 103,750
$ 110,900
$118,050
Luna County
$ 34,200
$ 39,050
$ 43,950
$ 48,800
$ 52,750
$ 56,650
$ 60,550
$ 64,450
McKinley County
$ 34,200
$ 39,050
$ 43,950
$ 48,800
$ 52,750
$ 56,650
$ 60,550
$ 64,450
Mora County
$ 34,200
$ 39,050
$ 43,950
$ 48,800
$ 52,750
$ 56,650
$ 60,550
$ 64,450
Otero County
$ 34,200
$ 39,050
$ 43,950
$ 48,800
$ 52,750
$ 56,650
$ 60,550
$ 64,450
Quay County
$ 34,200
$ 39,050
$ 43,950
$ 48,800
$ 52,750
$ 56,650
$ 60,550
$ 64,450
Rio Arriba County
$ 34,200
$ 39,050
$ 43,950
$ 48,800
$ 52,750
$ 56,650
$ 60,550
$ 64,450
Roosevelt County
$ 34,650
$ 39,600
$ 44,550
$ 49,500
$ 53,500
$ 57,450
$ 61,400
$ 65,350
San Juan County
$ 35,750
$ 40,850
$ 45,950
$51,050
$ 55,150
$ 59,250
$ 63,350
$ 67,400
San Miguel County
$ 34,200
$ 39,050
$ 43,950
$ 48,800
$ 52,750
$ 56,650
$ 60,550
$ 64,450
Sandoval County
$ 42,300
$ 48,350
$ 54,400
$ 60,400
$ 65,250
$ 70,100
$ 74,900
$ 79,750
Santa Fe County
$ 45,150
$ 51,600
$ 58,050
$ 64,500
$ 69,700
$ 74,850
$ 80,000
$ 85,150
Sierra County
$ 34,200
$ 39,050
$ 43,950
$ 48,800
$ 52,750
$ 56,650
$ 60,550
$ 64,450
Socorro County
$ 34,200
$ 39,050
$ 43,950
$ 48,800
$ 52,750
$ 56,650
$ 60,550
$ 64,450
Taos County
$ 34,200
$ 39,050
$ 43,950
$ 48,800
$ 52,750
$ 56,650
$ 60,550
$ 64,450
Torrance County
$ 42,300
$ 48,350
$ 54,400
$ 60,400
$ 65,250
$ 70,100
$ 74,900
$ 79,750
Union County
$ 34,650
$ 39,600
$ 44,550
$ 49,450
$ 53,450
$ 57,400
$ 61,350
$ 65,300
Valencia County
$ 42,300
$ 48,350
$ 54,400
$ 60,400
$ 65,250
$ 70,100
$ 74,900
$ 79,750
* In cases where the household exceeds eight persons, please contact MFA, for income figure
5
Revised 10/14/2022
HomeNow DPA Program Purchase Price Limits
Effective October 7, 2022 *Source HUD
County
Existing Home
New Home
Bernalillo County
$225,000
$252,000
Catron County
$193,000
$251,000
Chaves County
$193,000
$251,000
Cibola County
$193,000
$251,000
Colfax County
$231,000
$251,000
Curry County
$193,000
$251,000
De Baca County
$193,000
$251,000
Dona Ana County
$198,000
$251,000
Eddy County
$221,000
$267,000
Grant County
$193,000
$251,000
Guadalupe County
$193,000
$251,000
Harding County
$193,000
$251,000
Hidalgo County
$193,000
$251,000
Lea County
$196,000
$251,000
Lincoln County
$271,000
$271,000
Los Alamos County
$366,000
$366,000
Luna County
$193,000
$251,000
McKinley County
$193,000
$251,000
Mora County
$193,000
$251,000
Otero County
$193,000
$251,000
Quay County
$193,000
$251,000
Rio Arriba County
$197,000
$251,000
Roosevelt County
$193,000
$251,000
San Juan County
$195,000
$251,000
San Miguel County
$193,000
$251,000
Sandoval County
$233,000
$254,000
Santa Fe County
$347,000
$347,000
Sierra County
$193,000
$251,000
Socorro County
$193,000
$251,000
Taos County
$298,000
$298,000
Torrance County
$223,000
$252,000
Union County
$193,000
$251,000
Valencia County
$223,000
$252,000