• Apr 21, 2017 MFA offers lucrative financing in targeted areas
    Gary Sandler
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    Published 21 April 2017

    LAS CRUCES — The New Mexico Mortgage Finance Authority is best known for providing mortgages and down payment assistance to first-time buyers. They do much more than that, however. In addition to also providing tax credits and other 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 formally 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 statewide median income”, according to Teri Baca, homeownership representative for MFA. In New Mexico, the U.S Census Bureau has identified 25 such tracts in eleven counties. Doña Ana County leads the pack with seven.

    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/or raise home values.

    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.

    Borrowers may also be eligible to receive down payment and closing cost assistance in the form of a grant or low interest-rate second mortgage. In addition, higher-than-normal household income limits range from $67,200 annually for a one-person household to $78,400 for families of three, or more. Homes valued at $312,368 and below are eligible for financing.

    The seven areas targeted for incentives in Doña Ana County include Las Cruces, Anthony, Sunland Park and various surrounding areas. The accompanying maps outline the two targeted areas located in Las Cruces, which 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 low down payment and below market, fixed rate financing 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 Realtor.

    See you at closing.

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

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      Gary Sandler