Subordination Guidelines

Subordination Guidelines for MFA Down Payment Assistance
Loans (HOME & HELP loans)

The New Mexico Mortgage Finance Authority (MFA) Down Payment Assistance (DPA) loan programs are designed to provide first-time homebuyers with an opportunity to purchase a home in cases where the homeowner does not have cash funds available for the down payment and closing costs required to purchase a home.

There are many programs offered such as HELP, HOME, and HOME Payment$aver.

Additionally, MFA administers federal HOME funds for the rehabilitation of existing homes.

The HELP DPA loan program has evolved from a zero interest/zero payment due on sale, transfer or refinance loan to a 10 year amortizing loan with an interest rate of 5% or 6%.

The HOME, HOME Payment$aver and HOME Rehabilitation loans have evolved from forgivable loans (grants) over the period of affordability (Pre 1997) to due on sale, transfer or refinance loans.

The change to due on sale, transfer or refinance is for the purpose of recycling the funds to assist additional first-time homebuyers in purchasing their home as well as required compliance to program guidelines. MFA as administrator/servicer is required to follow these guidelines and therefore will not under any circumstance, authorize a subordination on any type of MFA DPA loan.