Owning a home is a goal for many New Mexico families. But often they face obstacles, like saving enough money to cover initial expenses, and achieving comfortable monthly payments. MFA’s Payment$aver Program is the most affordable way to buy your first home.
Payment$aver works with a below-market interest rate first mort-gage loan as a second mortgage loan at zero-percent interest to cover up-front costs (the down payment and other costs related to the purchase excluding pre-paids).
Depending on the type of mortgage loan, Payment$aver may assist with the cost to reduce the monthly mortgage payments through an interest rate buy-down.
The MFA Payment$aver program is available Statewide (excluding the Albuquerque City Limits) to first-time homebuy-ers who have not owned and occupied a primary residence for the past three years.
Many types of first mortgage loans are available with the Payment$aver program. These include FHA, VA, and a variety of conventional loans, including the Community Home Buyer Product (CHBP). Rural Housing Services (RHS) guaranteed, leveraged or direct loans are also available as are loans on Native American trust lands.
Household income and home sales price limits apply depending on family size and geographic location. See the charts at the right and on the back.
The zero-percent interest Payment$aver loan is a soft second loan that may not exceed the lesser of 8% of the sales price of the home or $8,000. The loan does not need to be paid back until the property is sold, refinanced, or transferred, and it is assum-able if the buyer meets program eligibility requirements. After 5 years, this loan may be forgiven at the rate of 20% per year.
How do I qualify?
A participating lender can determine your eligibility for Payment$aver, explain various MFA loan types, and help you determine which works best for you. A list of participating lenders appears on the back of this fact sheet. In order to qualify for Payment$aver, you must also receive first time homebuyer housing counseling paid for by the MFA and available through MFA certified agencies throughout New Mexico. If there is not an approved agency near you, MFA will help you in the process.
The MFA has implemented an additional requirement to the Payment$aver and Smart Choice programs, which are described below. MFA's objective is to maximize limited federal resources.
Borrower may retain no more than 6 months' total household income in reserve after closing (Retirement funds such as 401(k) accounts, IRAs, etc. are not considered part of the household's reserve).
*Note: Stipulation regarding maximum reserve amount does not apply to those borrowers who are on fixed incomes.
