HOMENow Down Payment Assistance Program Policy June 1, 2021

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Revised 5/14/2021

HOMENow Down Payment Assistance Program Policy

June 1, 2021

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. A portion of these funds will be set aside for use in rural com-

munities and economically distressed census tracts. Reservations of funds are made through MFA’s online

reservation system, which can be accessed on MFA’s website (www.housingnm.org/lenders_real-

tors/online-reservations).

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.

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Revised 5/14/2021

• Borrower contribution of at least $500, which must be the borrowers’ own funds and cannot be

derived from any type of gift, grant or down payment assistance.

• Minimum credit score of 620.

• Homebuyers must occupy the property within 60 days of closing.

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, and homes in Planned Unit Developments and

manufactured 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 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 limited to the lesser of 8% of the purchase price or $8,000.

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).

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Revised 5/14/2021

Homebuyer counseling is not required for Co-signers.

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.

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

Commitment. 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.

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Revised 5/14/2021

EXHIBIT A

HOMENow DPA Program Income Limits (80% AMI)

Effective June 1, 2021

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 2021 figures.

County

Number of People in the Household

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Bernalillo County

$ 37,800

$ 43,200

$ 48,600

$ 54,000

$ 58,350

$ 62,650

$ 67,000

$ 71,300

Catron County

$ 30,600

$ 35,000

$ 39,350

$ 43,700

$ 47,200

$ 50,700

$ 54,200

$ 57,700

Chaves County

$ 30,600

$ 35,000

$ 39,350

$ 43,700

$ 47,200

$ 50,700

$ 54,200

$ 57,700

Cibola County

$ 30,600

$ 35,000

$ 39,350

$ 43,700

$ 47,200

$ 50,700

$ 54,200

$ 57,700

Colfax County

$ 30,600

$ 35,000

$ 39,350

$ 43,700

$ 47,200

$ 50,700

$ 54,200

$ 57,700

Curry County

$ 30,600

$ 35,000

$ 39,350

$ 43,700

$ 47,200

$ 50,700

$ 54,200

$ 57,700

De Baca County

$ 32,250

$ 36,850

$ 41,450

$ 46,050

$ 49,750

$ 53,450

$ 57,150

$ 60,800

Dona Ana County

$ 30,600

$ 35,000

$ 39,350

$ 43,700

$ 47,200

$ 50,700

$ 54,200

$ 57,700

Eddy County

$ 40,850

$ 46,650

$ 52,500

$ 58,300

$ 63,000

$ 67,650

$ 72,300

$ 77,000

Grant County

$ 30,900

$ 35,300

$ 39,700

$ 44,100

$ 47,650

$ 51,200

$ 54,700

$ 58,250

Guadalupe County

$ 30,600

$ 35,000

$ 39,350

$ 43,700

$ 47,200

$ 50,700

$ 54,200

$ 57,700

Harding County

$ 30,600

$ 35,000

$ 39,350

$ 43,700

$ 47,200

$ 50,700

$ 54,200

$ 57,700

Hidalgo County

$ 30,600

$ 35,000

$ 39,350

$ 43,700

$ 47,200

$ 50,700

$ 54,200

$ 57,700

Lea County

$ 34,550

$ 39,450

$ 44,400

$ 49,300

$ 53,250

$ 57,200

$ 61,150

$ 65,100

Lincoln County

$ 33,450

$ 38,200

$ 43,000

$ 47,750

$ 51,600

$ 55,400

$ 59,250

$ 63,050

Los Alamos County

$ 55,950

$ 63,950

$ 71,950

$ 79,900

$ 86,300

$ 92,700

$ 99,100

$105,500

Luna County

$ 30,600

$ 35,000

$ 39,350

$ 43,700

$ 47,200

$ 50,700

$ 54,200

$ 57,700

McKinley County

$ 30,600

$ 35,000

$ 39,350

$ 43,700

$ 47,200

$ 50,700

$ 54,200

$ 57,700

Mora County

$ 30,600

$ 35,000

$ 39,350

$ 43,700

$ 47,200

$ 50,700

$ 54,200

$ 57,700

Otero County

$ 30,600

$ 35,000

$ 39,350

$ 43,700

$ 47,200

$ 50,700

$ 54,200

$ 57,700

Quay County

$ 30,600

$ 35,000

$ 39,350

$ 43,700

$ 47,200

$ 50,700

$ 54,200

$ 57,700

Rio Arriba County

$ 30,600

$ 35,000

$ 39,350

$ 43,700

$ 47,200

$ 50,700

$ 54,200

$ 57,700

Roosevelt County

$ 31,050

$ 35,450

$ 39,900

$ 44,300

$ 47,850

$ 51,400

$ 54,950

$ 58,500

San Juan County

$ 33,500

$ 38,250

$ 43,050

$ 47,800

$ 51,650

$ 55,450

$ 59,300

$ 63,100

San Miguel County

$ 30,600

$ 35,000

$ 39,350

$ 43,700

$ 47,200

$ 50,700

$ 54,200

$ 57,700

Sandoval County

$ 37,800

$ 43,200

$ 48,600

$ 54,000

$ 58,350

$ 62,650

$ 67,000

$ 71,300

Santa Fe County

$ 40,900

$ 46,750

$ 52,600

$ 58,400

$ 63,100

$ 67,750

$ 72,450

$ 77,100

Sierra County

$ 30,600

$ 35,000

$ 39,350

$ 43,700

$ 47,200

$ 50,700

$ 54,200

$ 57,700

Socorro County

$ 30,600

$ 35,000

$ 39,350

$ 43,700

$ 47,200

$ 50,700

$ 54,200

$ 57,700

Taos County

$ 30,600

$ 35,000

$ 39,350

$ 43,700

$ 47,200

$ 50,700

$ 54,200

$ 57,700

Torrance County

$ 37,800

$ 43,200

$ 48,600

$ 54,000

$ 58,350

$ 62,650

$ 67,000

$ 71,300

Union County

$ 31,000

$ 35,400

$ 39,850

$ 44,250

$ 47,800

$ 51,350

$ 54,900

$ 58,450

Valencia County

$ 37,800

$ 43,200

$ 48,600

$ 54,000

$ 58,350

$ 62,650

$ 67,000

$ 71,300

* In cases where the household exceeds eight persons, please contact MFA, for income figure

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Revised 5/14/2021

HOMENow DPA Program Purchase Price Limits

Effective June 1, 2021

County

Existing Home

New Home

Bernalillo County

$200,000

$243,000

Catron County

$170,000

$243,000

Chaves County

$170,000

$243,000

Cibola County

$170,000

$243,000

Colfax County

$223,000

$243,000

Curry County

$170,000

$243,000

De Baca County

$170,000

$243,000

Dona Ana County

$176,000

$243,000

Eddy County

$221,000

$250,000

Grant County

$170,000

$243,000

Guadalupe County

$170,000

$243,000

Harding County

$170,000

$243,000

Hidalgo County

$170,000

$243,000

Lea County

$187,000

$243,000

Lincoln County

$214,000

$243,000

Los Alamos County

$323,000

Luna County

$170,000

$243,000

McKinley County

$170,000

$243,000

Mora County

$170,000

$243,000

Otero County

$170,000

$243,000

Quay County

$170,000

$243,000

Rio Arriba County

$170,000

$243,000

Roosevelt County

$170,000

$243,000

San Juan County

$181,000

$243,000

San Miguel County

$170,000

$243,000

Sandoval County

$200,000

$243,000

Santa Fe County

$295,000

Sierra County

$170,000

$243,000

Socorro County

$170,000

$243,000

Taos County

$271,000

Torrance County

$196,000

$243,000

Union County

$170,000

$243,000

Valencia County

$196,000

$243,000