MFA offers lucrative financing in targeted areas

Gary Sandler
·2 min read

The New Mexico Mortgage Finance Authority is best known for providing mortgages and down payment assistance to first-time and repeat homebuyers. They do much more than that, however. In addition to also providing tax credits and financing for the development of affordable rental housing, they likewise offer special financing for buyers who purchase homes in economically distressed neighborhoods. Those neighborhoods are known as Targeted Area Census Tracts.

“Targeted areas are those in which at least 70 percent of households earn no more than 80 percent of the area median income,” according to Teri Baca, homeownership representative for MFA. In New Mexico, the U.S Census Bureau has identified 44 such tracts in eleven counties. McKinley leads the pack with 16.

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The program is designed to incentivize first-time and repeat buyers to purchase homes located in economically challenged areas, which is known to increase pride of ownership and help stabilize and raise home values. These special benefits are available to buyers who utilize MFA’s FirstHome program.

So, what sort of incentives does MFA offer to entice buyers to purchase in these areas? First and foremost, buyers don’t have to be first-timers. Current and past homeowners are both eligible as long as they meet the basic MFA qualifications and occupy the home as their primary residence. Loan types include conventional, FHA, VA and USDA, all of which are offered at the lowest rate MFA charged during the preceding twelve months.

Gary Sandler
Gary Sandler

Borrowers using FirstHome are also eligible to receive down payment and closing cost assistance in the form of an affordable second mortgage, known as the FirstDown program. In addition, higher-than-normal household income limits range from $73,680 annually for a one or two-person household to $102,200 for families of three or more, depending on the county. Homes valued at $381,308 and below are eligible for financing in most areas, with Santa Fe County being the exception, where a purchase price of up to $442,981 is allowed.

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The seven areas targeted for incentives in Doña Ana County include tracts in Las Cruces, Anthony and Sunland Park. The targeted areas in Las Cruces are generally bounded by Mesilla Street on the west, Solano Drive on the east, N. Main Street on the north and Idaho Avenue on the south.

This terrific program provides homebuyers with the opportunity to purchase a home in an up-and-coming area while utilizing affordable, fixed-rate financing and down payment assistance in the process. Sounds like a win-win to me.

For more information, visit http://www.housingnm.org/homebuyers/targeted-area-census-tracts or contact your favorite MFA participating lender or Realtor.

See you at closing.

Gary Sandler is a full-time Realtor and owner of Gary Sandler Inc., Realtors in Las Cruces. He loves to answer questions and can be reached at 575-642-2292 or Gary@GarySandler.com.

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This article originally appeared on Las Cruces Sun-News: MFA offers lucrative financing in targeted areas