๐ก Buying & Selling a Home in a Targeted Area โ A Game Changer for New Mexico Homebuyers
Are you looking to buy or sell a home in Bernalillo County or anywhere in New Mexico? You may qualify for an incredible opportunity through the Targeted Areas Program, which offers lower mortgage rates, higher purchase price limits, and down payment assistance to homebuyers.
This program makes homeownership more accessible and helps sellers attract more buyers who qualify for special financing. View the Targeted Areas Info Sheet.
๐ฏ What is a Targeted Area?
A targeted area is a neighborhood identified by the U.S. Census Bureau as economically disadvantaged. To encourage homeownership, the New Mexico Mortgage Finance Authority (MFA) offers special incentives for buyers purchasing homes in these areas.
๐ฐ Benefits for Homebuyers
- Higher Income Limits: More buyers can qualify for MFA loans.
- Higher Purchase Price Limits: Buyers have more options to choose from.
- Lowest MFA Interest Rate: Eligible buyers get the lowest rate offered in the past 12 months.
- Down Payment & Closing Cost Assistance: Up to 4% of the home price through MFAโs FIRSTDown program.
- Not Limited to First-Time Buyers: Unlike most assistance programs, buyers in targeted areas do not have to be first-time homebuyers.
๐ Who Qualifies?
To qualify for this program, homebuyers must:
- Purchase a home in a designated targeted area.
- Use MFAโs FIRSTHome mortgage program.
- Have a minimum credit score of 620.
- Contribute at least $500 of their own funds.
- Meet income and purchase price limits (see below).
๐ Targeted Area Income & Purchase Price Limits
| Location | 1-2 Person Household | 3+ Person Household |
|---|---|---|
| Albuquerque MSA (Bernalillo, Sandoval, Torrance, Valencia Counties) | $103,680 | $120,960 |
| All Other NM Counties | $94,680 | $110,460 |
๐ Purchase Price Limits
- All NM Areas: $624,481
๐ Example: How This Helps Buyers
Scenario: A buyer purchasing a $300,000 home in Bernalillo County using MFAโs FIRSTHome & FIRSTDown programs.
If you’re planning to buy a home in Bernalillo County, the Targeted Areas Program by MFA can be a game changer. It makes homeownership more accessible by offering down payment assistance, lower interest rates, and a dramatically reduced upfront cash requirement.
1. Down Payment & Out-of-Pocket Costs
- Home Price: $300,000
- FHA Down Payment (3.5%): $10,500
- FIRSTDown Assistance (4%): $12,000
This $12,000 assistance covers the $10,500 required for the down payment and leaves an extra $1,500 to help cover closing costs.
Mandatory Buyer Contribution: $500
Total Out-of-Pocket: $500 (instead of $12,000)
2. Monthly Mortgage Payment Comparison
Disclaimer: The rates below are approximate based on March 2025 conditions. They change frequentlyโalways consult a qualified lender for current rates. This is an example only and every buyer may have different results.
Without the Program
- Interest Rate: 6.50%
- Monthly Principal & Interest (P&I): โ $1,896
- Taxes & Insurance: $350/month (Taxes: $250, Insurance: $100)
- Total Monthly Payment: $1,896 + $350 = $2,246
With the Program
- Interest Rate: 5.75%
- Monthly P&I: โ $1,751
- Second Mortgage (Assistance Repayment): โ $95/month (assumed 5% fixed over 15 years)
- Taxes & Insurance: $350/month
- Total Monthly Payment: $1,751 + $95 + $350 = $2,196
Monthly Savings: About $50 per month, plus the huge benefit of reducing your upfront cash from $12,000 to $500.
Quick Summary & Key Takeaways
- ๐ Home Price: $300,000
- ๐ฐ FHA Down Payment: $10,500
- ๐ FIRSTDown Assistance: $12,000
- ๐ต Mandatory Buyer Contribution: $500
- ๐ป Out-of-Pocket Without Program: $12,000
- ๐บ Out-of-Pocket With Program: $500
- ๐ Monthly P&I at 6.50%: $1,896
- ๐ Monthly P&I at 5.75%: $1,751
- ๐ณ Assistance Repayment: $95/month
- ๐งพ Taxes & Insurance: $350/month
- ๐ธ Total Without Program: $2,246/month
- ๐ธ Total With Program: $2,196/month
- ๐ Bottom Line: Save $50/month and cut upfront cash by $11,500!
Key Takeaway: By stacking the FIRSTHome mortgage with FIRSTDown assistance, you can reduce your upfront cost from $12,000 to just $500 and lower your monthly payments slightlyโmaking homeownership much more accessible.
Disclaimer: The calculations above are based on approximate rates and conditions as of March 2025. This is an example only and every buyer may have different results. Mortgage rates and terms are subject to change. Always consult a qualified lender for the most current details.
๐จIMPORTANT NOTE FOR BUYERS!
- Some buyers may qualify for additional Down Payment Assistance and/or Closing Cost support.
- Visit theย Housing NM Mortgage Programs page and consult your lender.
๐ก How Sellers Benefit
- Larger Buyer Pool: More buyers can qualify for financing.
- Faster Home Sales: Buyers with down payment assistance move quickly.
- Better Marketability: Promoting MFA financing makes your home stand out.
๐ข Pro Tip for Sellers: Add This to Your Listing!
๐ก โThis home qualifies for special financing through the MFA Targeted Areas Program! Buyers may be eligible for lower interest rates, higher income limits, and down payment assistanceโmaking homeownership more affordable. Ask your lender for details!โ
๐ Tips for Buyers & Sellers
๐น Buyer Tips:
- Check if your desired home is in a targeted area on the MFA website.
- Confirm property address is in the Targeted area.
- Get pre-approved with an MFA-approved lender.
- Complete the required homebuyer education course.
- Use our website to search homes for sale that may qualify for the Targeted Areas Program.
๐น Seller Tips:
- Check if your home is in one of the Targeted areas. In Bernalillo County, the Census tracts are: 09.05, 09.06, 09.08, 12.01, 13.00, 15.00, 20.00, 24.04, 34.00, 37.33, 47.36, 47.49, 9406.02. (This list is subject to change at any time)
- Highlight MFA incentives in your listing description.
- Work with a REALTORยฎ familiar with MFA loan programs.
๐ Next Steps: Get Started Today!
For Buyers:
- Check if a home is in a targeted area at housingnm.org.
- Get pre-approved with an MFA-approved lender.
- Find your dream home and start the buying process!
For Sellers:
-
- Verify if your home is in a targeted area.
- Highlight MFA financing options in your listing.
- Work with an experienced REALTORยฎ to attract buyers.
๐ก Looking to buy or sell in a targeted area? Contact us today to see how you can benefit from this amazing program!